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Technology Stocks : Apple Inc.

AAPL 259.35

+0.1%

Jan 9 9:30 AM EST

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To: GVTucker who wrote (68639)	9/14/2007 12:40:52 PM
From: inaflash	of 213181

One thing that's a bit surprising about the $100 is that it isn't valid for iTunes. That strikes me as a bit of petty policy by Apple. A little dissapointing from a customer point of view, but not surprising. What products can I purchase using an Apple Store credit code? You can purchase just about anything sold by Apple, except another Apple Store Gift Card or an iTunes electronic Gift Certificate. The phrasing makes it seem like they're treating the $200 Store Credit equal to an Apple Store Gift Card. From a processing point of view, it would be wasteful (money loosing) to be swapping gift cards back and forth. There's a transaction cost without a transaction revenue. From a margins standpoint, iTMS is reportedly low/lower margins, so that might be a business case for not including it. On the other hand, since credit card processing isn't involved, they can make those profits/savings, so it wouldn't be that bad. If the rebate was $10 or $20, it might make more sense to hand out iTMS cards instead. A $100 credit is far more useful in the store to push more expensive products. I suspect a large chunk of these will be redeemed for Shuffles and headphones.

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