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Technology Stocks : Apple Inc.
AAPL 279.02+1.1%12:48 PM EST

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To: Edward Boghosian who wrote (6651)12/8/1997 10:00:00 PM
From: Marc Newman  Read Replies (1) of 213173
 
Ed, everybody is disappointed with Apple's current ads. Apparently they are going to run an aggressive spot in Jan. featuring the young Ali, but I don't understand the timing. All I can think of is that they figure the best chance of profitability is to just cut all discretionary spending this month. No extra travel, no more ads on tv, etc. We have to just give them the benefit of the doubt on this one, since we don't have access to the internal numbers.

Given the scenario your wife encountered and the fact that Apple still needs to rebuild their retail structure, perhaps it is best not to be running expensive ads right now that will send customers into the hands of the "Apple is dead" clerks. Once CompUSA gets all its stores up to date, the new commission schedules are in place for Circuit City-type salespeople, and stores either commit to the Mac or not, that might be the time for ads aimed at the general public. It's frustrating though.

One other possible thought is that Apple is selling all the G3 systems it can make (reportedly their factories have a 10,000 a day run-rate) and thus ads touting them would be mostly wasted. We need somebody to buy the rest of those 7300s!

If you were following this company closely in 1996 I think you'd see what I'm seeing--Apple is executing much better. Products are generally available. The pricing is good. They aren't pushing in unprofitable areas like they used too. Costs are under control. Software releases are coming out on schedule. Cash position is excellent. Plus, I'm seeing the media's tone softening towards Apple.
I like it. And this quarter I don't freaking care about a sub-$1000 system that Apple would lose money on! Perhaps their personal NC will use the television screen. It's a good idea.

Good luck,
Marc
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