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Technology Stocks : Apple Inc.
AAPL 278.85+0.5%Nov 28 9:30 AM EST

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To: bobby beara who wrote (7024)12/25/1997 2:07:00 PM
From: Eric Yang  Read Replies (1) of 213173
 
Reuter on Apple
biz.yahoo.com

Many analysts are accusing Apple of not doing enough to move the none G3s while others say Apple is doing quite well by offering attractive rebates for these older Macs. Which makes more sense?

Personally I think the inventory problem with none G3s has been exaggerated, at least in the US. Yes, Apple gained notoriety with its Performa inventory problems but the 8600 and 6500 are pretty kickass machines. It would be foolish to compare them to the Performas.

The 8600/300 especially is a powerhouse in its own right. On integer intensive tasks it's just %15 slower than the G3/266, arguably the fastest desktop on earth. It beats the G3/266 hands down on expandability.

UCLA is selling the 8600/300s to university depts for $2399 and if you buy 50 or more at one time (and who doesn't?) its $2179. At these price points, these machines should do pretty well in the educational and business market.

Apple's foreign market which accounts for 50% of its business could be a different story though. The news about the G3 has had plenty of time to reached the international markets and yet very few units of G3 have been shipped so far. We're left with the expected erosion in sales due to product transition but don't get the benefit of G3 sales. That could be a bit of a problem.

Eric
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