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Technology Stocks : Apple Inc.
AAPL 259.51-0.2%1:52 PM EST

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To: Richard Habib who wrote (13260)5/10/1998 9:01:00 PM
From: rhet0ric  Read Replies (3) of 213182
 
I hope we don't see postponed G3
buyer this quarter in favor of waiting for the iMac.


I don't think this will happen. The iMac seems to be aimed at the non-Mac crowd. I see two clues to this:

1) The iMac doesn't have the traditional Mac connectivity, such as SCSI and ADB. As such, it doesn't fit very well into an established Mac office. It makes more sense for Mac shops to buy low-end G3s or, if in education, to buy a G3 AIO.

2) Apple has lately established a pattern of not preannouncing their products. This luxury is one of the many benefits of killing clones. It allows Apple to clear out old inventory at decent prices before introducing the next round of products, which in turn maintains the new, high margins. So the question is: why did they pre-announce the iMac? Answer: it's intended to undercut low-end PC sales, not Mac sales. So pre-announcing, it is hoped, will have a damaging effect on an already over-stuffed PC pipeline, and regain Mac market share.

Here's hoping the strategies work.

rhet0ric
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