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Technology Stocks : Apple Inc.
AAPL 260.47+0.2%10:04 AM EST

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To: jbn3 who wrote (60082)1/4/2007 2:13:36 PM
From: Cogito  Read Replies (2) of 213182
 
>>Note: I highlighted a paragraph near the end. It seems some posters here believe that iTunes sales are 'bottom-line negligible'. This should totally dispel that idea.<<

jbn3

No, I don't think those numbers do dispel that idea. Since the category includes profits from the retail sales of third party accessories, it's likely that the bottom line impact comes from that.

Apple has stated repeatedly that the iTunes store itself is only very slightly profitable.

- Allen

PS: Some of the numbers from that post are questionable. While the poster is correct that Apple's sales growth has been phenomenal, I think he could have been more careful in crafting the post.

For example, he talks about desktop unit sales of 2,434,000 and portable sales of 4,056,000 units for the September quarter. I think those figures must be for the whole year. Apple has never sold more than 2 million total cpus in a single quarter.
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