March 14, 2006
.Mac - The next big thing for Apple
Apple is, whether Buffet knows it or not, the perfect technology stock. Fashion, design, great retail, great brand and now with .Mac, a long-term recurring revenue model.
In the Windows world, there are at least 20 companies vying for your storage business. Once you buy a Mac, there is one choice for your storage needs - a .Mac account. Photos, music, movies, blogging = STORAGE NEEDS = $$$$$$$$ for Apple.
It costs $99 per year, but that is cheap. Assuming the world slowly moves to an Apple computer in every living room - $99 per household adds up.
The stock was upgraded today from some putz at Citibank - but no real model built in for .Mac. So, he is late to the party and right - just for the wrong long-term reasons.
I know I am right about this, just from following the blogging world. One of the most highly blogged tech areas is online storage. Leading the way is a Mark Cuban backed upstart - Box.net. The young guns (early 20's) running this little company are as sharp as any veteran, but they are swimming in a pool of sharks. Google, Microsoft, and countless well funded start-ups. I know one of the founders and I expect (hope) Yahoo or someone to buy them soon for a lot of money. Dell, HP, Gateway have all missed the boat on the hardware side. They should have had this solution built-in to their marketing and service years ago. Apple did, does and is set to dominate their market with .Mac. I am a subscriber and love it!!!!!!
Best, Parkite (Brook Connery)
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