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Technology Stocks : Apple Inc.
AAPL 259.35+0.1%Jan 9 3:59 PM EST

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To: David Semoreson who wrote (4422)8/22/1997 9:01:00 AM
From: Phillip C. Lee   of 213182
 
David,

I am as optimistic as you are regarding Apple's furture revenue/net
income. Let's look as the sales of OS8: 1.2 million copies have been
sold in the first two weeks starting from mid of July. The
whole volume of OS8 was sold out in the first day of Sigorpore's
MacWorld Expo. The trend has been continuously strong. It is
conservatively estimated that at least 4-5 million copies will be
sold by the end of September in U.S. alone. If we count 53% of
revenues was generated from overseas (based on last quarter's data),
then there will be about the same amount of OS8 copies to be sold
overseas. The total amount will reach to 8-10 million copies during
this quarter ending on 30th of September. The revenues from such
volume would be around 560-700 million U.S. dollars if average price
of OS8 is around $70. Besides this huge peak revenue generated from
software alone, the hardware has been sold pretty good (some estimated
about 20-30% increased compared to the previous quarter). With such
an excellent news, along with world-class board members, Apple's
future is outstanding without any doubt. Actually, I can start
feeling the huge difference since the new board members have been
working on such issues as licensing, trimming fat inside Apple, and
directions of Apple's strategies.

If you would like to look from stock quantity alone. The momentum
(stock price and volume) has been built up last week. It is about
at least 70% of stock change hands with high prices replacing lower
ones. I always like to estimate "the average Apple stock price" withheld by shareholders now since it can determine what price to
enter (buy or sell) would be the safest bet. The stock prices have
been within $23-$25 range, which indicates that it will stick within
this range for a while before any moves, and it is likely it will move
higher as the momentum builds up again.

IMHO

Phil C. Lee
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