Meanwhile, Cowen & Company maintained a "neutral" rating on Apple Computer yesterday after receiving mixed readings in its latest consumer survey, reports [url=http://www.forbes.com/2006/04/18/apple-computer-0418markets07.html?partner=yahootix]Forbes[/url]. "While Intel CPU transition challenges appear more fully discounted, [the] survey suggests potential for significant slowing in iPod growth," analyst Richard Chu wrote in a research note to clients.
He believes Apple still faces Intel-based Mac transition execution challenges, but expectations for Mac unit trends are now conservative enough that his concern on this front has moderated. "Indeed, despite more cautious home PC demand overall, Mac prospects look strong," Chu added.

Cowen also surveyed the impact of Boot Camp on Mac mind share and found it to be broadly positive, Forbes notes. However, that survey view of forward 12 to 18 month Digital Audio Player (specifically, iPod) demand is clearly weaker, despite a solid Apple specific share picture and iPod ecosystem spending outlook, Chu said.

"That is enough of a caveat to keep us on the sidelines on the stock," he told Forbes. "Given the twin visible axes of its game plan, the Mac and iPod, there can be little question that the stock will tend to fare best when there is perceived to be relatively clear sailing on both fronts."

What's more, ahen Apple reports its second quarter earnings, investors and analysts will watch closely for evidence of how the company's switch to Intel chips is panning out. [url=http://money.cnn.com/2006/04/18/technology/apple_walkup/index.htm]CNN Money[/url] reports.

The March quarter is seasonally slower for Apple, and analysts and investors are universally Apple predicting a big slowdown in both iPod and Mac sales from December's blowout numbers for that reason, the story adds. While analysts expect strong year-over-year growth in iPods (as usual) they don't think that will be the case with Mac sales.

Wall Street analysts are forecasting sales of roughly 1.2 million Mac units in the quarter, up just slightly from the 1.07 million Macs Apple sold in the same quarter last year. While the March quarter is traditionally slower than December, given December's holiday sales, the new Intel-based machines may have given shoppers an incentive to buy.

However, CNN Money notes that it remains to be seen whether they took the bait, especially since availability of the first Intel-based Mac laptop, the MacBook Pro, was severely constrained for the first month after it began shipping on February 14, according to Piper Jaffray analyst Gene Munster. He estimates that Apple was only able to meet demand for about two weeks in the quarter.

"The iMac and the MacBook Pro are doing well; we are still hearing sales for the (Intel) mini are kind of lukewarm," Shaw Wu, an analyst with American Technology Research, told CNN Money.