Tuesday, December 05, 2006

Calls of Note Part 1

- UBS comments on Apple (NASDAQ:AAPL) saying that according to checks & NPD weekly data, iPod sales seem to be picking up into year-end backing their recently raised estimates. This weekend the firm again visited packed Apple stores & continues to notice that iPod products remain dominant best sellers at Amazon.com & other retailers.

Weekly data that includes Black Friday, already shows sales of Microsoft's new Zune falling off 9% week/week, in line with latest checks (Microsoft fell from 2nd to 5th place in MP3 share w/w). Data (which doesn't include Apple stores) shows iPods up 29% QTD vs. 18% in UBS' model for 1Q07. Data also shows a surge by SanDisk in MP3 share, which will likely be short-lived given a major promotion. Checks also point toward continued momentum in Macs and prospects for higher accessories & software longer-term.

Reits Buy and $108 tgt.

Notablecalls: Not actionable but good to know category.

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