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Technology Stocks : Apple Inc.
AAPL 276.84-0.2%10:21 AM EST

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To: Marc Newman who wrote (8995)3/2/1998 8:33:00 PM
From: Musubi  Read Replies (3) of 213173
 
Since Apple's share is not falling that rapidly in the educational space (still at 43% of new purchases, and 53% installed base) it appears to me that Apple is going to increase its sales to schools this year

Unfortunately, what Apple did with the Newton may very well have an impact on this. I'm in K-12 education and we had to fight an uphill battle to justify the purchase of the eMate. In some school districts, we have limited budgets for what can be spent on technology and this is likely the norm across the U.S. The main problem was convincing the decision makers that these would be a great investment for the classroom while also fighting the "isn't Apple going out of business" routine. Therefore, many of us had to place our necks on the line. Now many of us fear that it will be chopped off as it is only a matter of time before we are placed over a flame and required to answer some tough questions. And if we cannot provide a solid enough argument, one can generalize that we can kiss any future Apple purchases (including the new handheld portables) goodbye.

Now I also understand that Apple has a valid reason in deciding this since they could make better uses of the resources elsewhere and this will no doubt help with the second quarter numbers and make Apple shareholders happy. On the flip side, was this the best way to treat a market segment which Apple considers one of its strength and will this have any impact on future revenues for the company in the future? After an email exchange with other educators in various parts of the country that also purchased the eMate, what it really boils down is how Apple is handling this whole affair. As recently as 2 weeks ago, eMates were still being promoted as a great educational tool. Apple has offered very little information in their F.A.Q. note. The conference call also offered little substance except as one put it, lip service. These may not be enough to convince the decision makers anyway as they'll expect better answers and more so, if Apple can pull the rug out from under this technology, what is to stop them on whatever they may be promoting in the future. Since many of us educators will end up taking major heat for this, Apple may end up losing the trust of the K-12 market because no sane person would want to put their job or reputation on the line in the future. I guess what I am trying to say is that many are underestimating the effect this will have in the education market. I am certain that as information starts filtering down, that this may have a profound effect on Apple sales in the future.
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