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Technology Stocks : Apple Inc.
AAPL 278.75-0.7%3:59 PM EST

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To: Phillip C. Lee who wrote (6293)11/11/1997 9:50:00 PM
From: Eric Yang  Read Replies (1) of 213173
 
Phil,
I agree strongly that sales thru internet should pickup. It has to. $500,000 in 12 hr would mean just 200 orders of the average $2500 G3 desktop. In another word.. 16 orders per hour...1 order every 3.5 minutes. Okay, maybe I'm over analyzing these preliminary figures.

In any case I think there is a lot of room for growth. The number released today doesn't reflect the true demand for online shopping yet.

I noticed that several items like the 8600/300 are currently out of stock at the online store. No doubt customers interested in these items will buy them from local shops. Another observation is that the G3 desktop and mini-tower are really the only machines available at the Apple online store that is customer configurable. All Powerbooks and previous models like 8600 etc are prebundled. Providing customers with high availability and self-configurable options are the two key advantages of online over traditional sales channels. The majority of none G3 products at the online stores are lack one or both of these advantages. As Apple increase product availability and start to implement its built-to-order strategy across its product lines naturally more people would want buy Macs online.

By the way, half of Apple's revenue comes from foreign markets. According to Jobs, the online store will be implemented in other countries after Jan. of 98. That will boost the total figure significantly.

If online sales were to double as more people start to use it and doubled again when international online stores are implemented... it would mean $4 million per day in revenue. That's $1.4 billion/year. Not exactly a small figure.

Eric
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