Our view is that Apple has had very good growth over the past couple of years, largely driven by upgrade cycle to its existing installed base.

Apple is, in many ways, a market unto itself. We believe there is a high likelihood that investors will overreact to this news and take down the PC names in sympathy. We would particularly view this as a buying opportunity for Gateway, and to a lesser extent, Compaq and Dell.

Apple is, in many ways, a market unto itself, ... We believe there is a high likelihood that investors will overreact to this news and take down the PC names in sympathy. We would particularly view this as a buying opportunity for Gateway, and to a lesser extent, Compaq and Dell.

Apple has a lack of any real new products to drive strong year-over-year unit growth. Its existing products are getting stale.

In our opinion, investors should not read this Apple blowup as evidence that PC demand is weak. Apple is, in many ways, a market unto itself.