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Technology Stocks : Apple Inc.
AAPL 273.91-1.6%1:28 PM EST
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To: pyslent who wrote (169994)5/29/2014 12:34:54 PM
From: Ryan Bartholomew  Read Replies (3) of 213176
 
These are better-than-Apple profit margins (40%). If the business was capable of generating $800M in earnings, it was a steal at $3B.
I agree. If they can manage $1B in profits for 3 years, it pays for itself and then some. Their model is such a perfect fit for Apple in the sense that they are selling high-margin fashion, not value. Their challenge is similar as well: how long can they keep it up? Earlier, someone cited an article that included this quote:

"But the real audio cognoscenti wouldn't touch them with a barge pole," says technology blogger Tom Cheesewright. "Ultimately they're a fashion brand."


If that's true, they may not keep it up for long, as the Apple involvement is likely to bring more of the audio cognoscenti into the fold.
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