Adam,
I basically agree with you. however I have one question:
Anyway, unit volumes were actually up, but revenue was down. However, if you think this is all just "cost-cutting", you are mistaken. Apple's current product mix, especially PM G3s, is very cheap to manufacture.
They sold more machines, yet revenue went down and margins went up. How can one then explain their profit? It has to be due to cost-cutting measures. You state that the G3 is cheap to make. This counts as a cost-cutting/streamlining measure.
I agree with your statement that Compaq should tell us the margins for the sub-$1000 machines. I'm not too sure how we are getting the short end of the stick, but I think management needs to re-think this market and determine how beneficial it is to Compaq.
-Eddie |
