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Technology Stocks : Apple Inc.
AAPL 278.37+0.1%Dec 12 3:59 PM EST
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To: Marc Newman who wrote (8635)2/19/1998 4:44:00 AM
From: Eric Yang  Read Replies (2) of 213176
 
Marc, I did some calculations based on the Q1 98 numbers.
If the calculation is anything close to being accurate,
Apple's margin on G3 machines should be in the 31% range.

Given:
Q1 98 units

non-G3 502,000
G3 133,000
---------------
total 635,000

preliminary calculation:
Q1 98 sales margin

non-G3 1227MM * 19.8%= 243MM
G3 351MM * X = 110MM
--------------------------------
total 1578MM * 22.4%= 353MM (given)
solving for X we get 31%

The 1227MM number is based on Q4 97's unit price of $2,440
and 19.8% margin.

However the average unit price and margin must have dropped
for non-G3 since Q4 97. Based on that assumption G3 must account
for a bigger portion of the 1578 MM last quarter. Based on unit
price of $2200.

2200X 502,000 unit = 1104MM non G3 sales
1578-1104 = 474 G3 sales

adjusted calculation:
Q1 97 sales margin

non-G3 1104MM * 18.0%= 199MM
G3 474MM * X = 154MM
--------------------------------
total 1578MM * 22.4%= 353MM

solving for X we get 32.4% ...not much different. If the
margin for non-G3 was even lower than 18% last
quarter it would mean that the margin for G3 machine
is much higher. A 17% margin for non-G3s could mean that
the margin for G3 is as high as 35%.

These are just crude calculations based on a number of
assumptions. But it does give us a rough idea on just how
high the margin is for the new G3s.

Eric
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