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Technology Stocks : Apple Inc.
AAPL 273.40-0.2%3:59 PM EST

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To: Marc Newman who wrote (8246)2/6/1998 6:57:00 AM
From: Doug Smith  Read Replies (1) of 213177
 
Marc
I have got to comment on the niche and international sales topics on the tread this week.

1)International-Europe is being overtaken by PCs at the moment. As I have reported in the past, G3s are tough to come by, though stocks are full now, and selling well. However, we are replicating a pattern where small resellers are the only consumer outlets. In the past, this was fine, but now the culture is going to mega-stores. These outlets are PC-only. If you ask about a Mac, they laugh and send you away. European sales are brisk, but there is not a growing market, rather it is a pent up demand which will plateau all too soon.

Mac needs to think about the emerging markets in Central and South America where the net is taking off. However, these places, and others such as Eastern Europe, can't afford Macs at the moment and so the market is going to Wintel thus limiting the emerging markets. Will the sub-1000$ computers be affordable to people in Russia?

2)Niches-this leads directly into my fear about the pro-niche article. This kind of thinking is a dead end strategy for Mac. If there is not increased market share, then the over all ratio between world OS usage slips as the emerging markets are taken by Windows. Mac needs to increase share in order to float the money needed for R&D. This is the case in both domestic sales and international.

Marketing.

It has always been a struggle for us.

If aapl is out to change the world, then they must be in the world.

good luck
Doug Smith
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