Analyst: Mac, iPod discounts lower than expected

Analyst: Mac, iPod discounts lower than expected

Associated Press, 11.28.08, 02:26 PM EST

Black Friday discounts were not as steep as expected on Apple Inc.'s computers and iPods, a sign that the company is confident in strong holiday sales, a Kaufman Bros. analyst said Friday.

The analyst, Shaw Wu, said Apple (nasdaq: AAPL - news - people ) discounts this year are about the same as in the past, between 5 and 10 percent. Accessories have been slashed more aggressively, with some speaker discounts as much as 40 percent.

Wu said he had hoped Apple would have cut prices further, given how consumers have been affected by the credit crunch. But he took the modest promotions as "confidence by Apple that it does not need to discount heavily to move product."

And he said some consumers have managed to get better deals at Apple stores by bringing in promotional materials from other authorized retailers to get matching prices. That arrangement, Wu noted, should help sales but also protect the Cupertino, Calif.-company's high-end brand name.

Wu said other retailers have offered discounts of up to 13 percent on Macs and iPods.

He reiterated a "Buy" rating on Apple shares.

The stock fell $2.33, or 2.4 percent, to $92.67 in a shortened trading session.