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Technology Stocks : Apple Inc.
AAPL 278.79-0.7%Dec 5 9:30 AM EST

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To: rhet0ric who wrote (8735)2/24/1998 10:26:00 AM
From: Eric Yang  Read Replies (1) of 213173
 
"But the flipside to Fred Anderson's comment is that there may not be as great a drop-off in sales from Q1 to Q2 as there has been historically. What would happen to your estimates if the dropoff was -5% instead of -10% or -20%? (Sorry, don't have Excel--we're waiting for Office98.)"

If you use a revenue of -5% and keep the 24.5% margin then we're looking at a whopping $81 million profit.

My 24.5% margin estimate may be too optimistic. I guess it all depends on Apple's next round of price cuts.

Eric
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