It’s an excellent question. You look at last quarter, their gross margin went down a bit sequentially.

It makes the second half more difficult now (for PC makers). There’s less of a driver for sales.

We view this keynote as a milestone and catalyst as it could set the tone for Apple and technology in 2006.

If you look at the stock price, it’s obviously been a darling. Expectations were very high. . . . Apple had to report a flawless quarter. It wasn’t flawless.

[Apple is] one of the few quality names out there with pretty high visibility, … You know whether they’re doing well or not.

We are seeing some customer confusion in the field but we do not anticipate this to last.

Apple has offset the gross margin pressure by managing its business better.

Today, they’re arguably the strongest company around in terms of their technology … their customer base and their brand name.