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Technology Stocks : Apple Inc.
AAPL 279.09+1.1%12:00 PM EST

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To: Andrew Kruh who wrote (415)10/19/1996 7:11:00 PM
From: cfimx   of 213185
 
Andrew, they have never done their own processors. So the PowerPC chips make no difference. Don't put a lot of faith in this Exponential chip. Something doesn't smell right about it. They probably want to go public or something.

Apple will never be able to invest large sums in R & D any longer. Take a look at Compaq and Dell's percentages. That's what you have to look forward to. Those are the facts of life at 20% gross margins. Only problem is, unlike Dell and Compaq, Apple still has to write a bunch of OS software. Software companies always have higher gross margins. Apple's in a real bind with their business model. Don't take my word for it, simply run the numbers yourself.
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