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Technology Stocks : Apple Inc.
AAPL 270.37-0.4%Oct 31 9:30 AM EDT

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To: Zen Dollar Round who wrote (145177)11/16/2012 11:47:52 PM
From: HerbVic1 Recommendation  Read Replies (4) of 213172
 
Aren't these iMacs basically disposable? If they're sealed and anything goes out, don't you just have to replace it? Of course if it's in warranty, it's a trade in ... or up ... (maybe) at no charge. But what about after the warranty is gone? Is the user going to feel compelled to upgrade a computer that has no warranty and can't be repaired? I wonder if Apple's going to use the certainty of a sealed system to start supporting a second hand market, taking trade ins for newer computers. They already have a pretty good business in refurbished units. That's all I ever buy anymore. They're great!

I'm not sure how well that's going to go over, though. A lot of people balk at closed system architecture. Although, I don't buy into the not upgradable argument. What's to upgrade? It's all there except DVD, and that's available as a peripheral already, if you want it.

I gotta say, I rarely use my built in DVD since I no longer make playlist CDs.

But, is this a design ploy to sell more AppleCare? And then, when AppleCare runs out, take the old computer in trade to refurbish and resell, while driving sales up of both new and used computers?

Just a WAG, but I'd bet if that's the case, it could be good for around 20 to 30% more sales volume, not to mention the increased AppleCare revenue.

Meanwhile, all those second hand refurbished iMacs are expanding the user base into the lower priced tiers of the market.
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