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Technology Stocks : Apple Inc.
AAPL 287.84+0.6%9:45 AM EST
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To: Instock who wrote (6179)11/10/1997 6:43:00 PM
From: Dave Jacob  Read Replies (1) of 213173
 
<Point is, dropping prices will sell lots of Mac's, BUT HURT the Bottom line even MORE. Long term they have few choices, short term seems obvious to me. AAPL is Hurting big!>

The best near term strategy for AAPL is to increase market share even at the expense of profits. They must overcome consumer fears that AAPL is going under, resulting in their avoidance to buy AAPL products. The main issue is re-establish market acceptance. Having some marketing experience, I recommend the following:
1. Cut prices to the bone.
2. Improve distribution channels. Direct marketing is a good start (a la today's conference announcement) but not at the expense of retailresellers or mail order. Establish training sessions for reseller sales clerks --make them evangelists.
3. HEAVY advertising -- in ALL media. Ad content should be informative, humorous, fun --re: ease of use, crash free, etc.-- contrast MACS with the clutzyness of WinTel platforms. Make APPLE a household word. (Their ad "THINK DIFFERENT" is crap! I could write alot on this ad but not being a good typist it would take up too much time.)

The aim here is SALES. Profits will come later. The street will drive up the stock price on revenues alone.
AAPL MUST CAPITALIZE ON BRAND LOYALITY. Profits will follow.

Dave
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