This afternoon, I searched the CNET News.com archives to see if I had written something about Apple launching iTunes in January 2001. Hey, it’s the 10th anniversary. But another story caught my attention: “Merrill Lynch to Apple Investors: Sell“, from Jan. 7, 2003. On the eve of Macworld, with Apple shares at $14.85, analyst Michael Hillmeyer reinstated Apple coverage with “sell”.
“Although Apple makes great products, in our view the new product pipeline looks skimpy and we expect continued market share losses”, Hillmeyer wrote in a note to investors. “A product differentiation strategy is difficult in a business increasingly commoditizing”.