SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Apple Inc.
AAPL 277.96-0.3%3:59 PM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Alomex who wrote (22620)1/18/1999 2:33:00 PM
From: HerbVic  Read Replies (1) of 213173
 
>>It would have been better for Apple to drop the
price of the iMac to $1199 before the holiday season
and maintain their number one sales ranking.
<<

Your point is well taken. The bragging rights to being in the number one sales position for both months would have been worth a lot more than the paltry difference in margin. Especially given that the effect on Apple's margins of a $100 drop in the MAP early in December would be [at least partially] offset by increased volume.

However, the flip side of that issue is the bragging rights to higher margins with increased sales in an industry with eroding margins under heavy price competition. It speaks of Apple's quality and style differentiation and its ability to sell on that. It speaks to Apple's future flexibility to drop prices as necessary. It says that, as yet, Apple seems isolated from the cutthroat pricing.

There is value in this side of the coin. Stock value. Investors will take note. AAPL is being set up for breaching the 50's barrier. This should take place as soon as the unit sales surveys are out for the month of January. You can take it to the bank.

HerbVic
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext