Ed,
I couldn't totally agree with your views.
First off, we have to agree that before Apple can get bigger, it has
to get smaller and profitable first (I buy Dr. Gil's concept).
Remember, it was 5-6 years ago, IBM cut 20% of its workforce, and the
revenue was reduced more than 20%, but how about now? IBM has been
larger in terms of revenue/net.
Secondly, Performa sales lesson forces Apple to skip low-ends in the
previous consumer quarter, which indicates that its strategies were
correct - at least viewing from positive net and low inventory level
angles.
Third, Apple may be able to enter low-end market now since
there is no severe "bad" competition from cloners, where I have no
bias against any clonings, just with cloners, there is so much noise
against Apple regarding its decisions, its products, as
well as marketing. I believe Apple will re-enter low-end market in
the near future along with Umax who may become Apple's OEM provider
in low-end market.
Fourth, when people buy Apple, they buy their quality and brand. If
the price bothers anybody who hesitates on making the decision, then
he/she may think twice about quality.
Overall, Apple is absolutely on the right track, and gradually
recovers on aspects of revenue/net income and stock price. I will not
be surprised if Apple hits $30 in the summer.
Phil |
