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Technology Stocks : Apple Inc.
AAPL 266.38-0.8%3:59 PM EST

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To: FJB who wrote (102905)9/12/2010 2:30:43 PM
From: Cogito4 Recommendations  Read Replies (1) of 213173
 
>>Well, fill us in. What are MAC margins? Please show us a link where they break this out.<<

As you know, Apple doesn't break out those numbers, any more than Dell or HP does. One thing I know is that things like iPod Shuffles and Nanos carry margins in the 20% range, or slightly below. So that affects the overall gross margin. We can only surmise what the profit margins are on computers. But we know they are higher than the competition's.

I don't think you can reasonably make the case that Apple has been forced to meaningfully reduce their profit margins on computers because of lower priced competition. I mean, they haven't introduced a four hundred dollar desktop yet, have they? They even recently raised the price of the entry-level Mini.

But maybe you'll feel comfortable agreeing with my statement if I modify it slightly. How's this: Apple's profit margins are the envy of the computer industry.
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