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Technology Stocks : Apple Inc.

AAPL 273.85

+0.5%

Dec 24 12:59 PM EST

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To: znv who wrote (13795)	5/19/1998 2:04:00 AM
From: Richard Habib	Read Replies (2) of 213177

Well I agree that the Wintel world will be down to $600-$700 by Xmas with the $700+ machines using the 300 Mhz Celeron chip but the iMac will still be quite a bit better. It may be true that the 1st time buyer won't go for the iMac in mass as it will actually be closer to mid-range but I think some will be swayed by what you get. I think students will go for it as well as people buying 2nd computers. I wouldn't be surprised if it's a big seller in Europe for 1st time buyers. Due to the lack of market penetration there, 1st time buyers are probably somewhat more sophisticated then the unpenetrated market that remains in the U.S. I also think it will appeal to people who value style and for whom efficiency isn't all that important (By that I mean value style over the problems inherent in switching platforms.), which again is a more sophisticated market and some of those may be Wintel. Remember, many people don't actually use their computer for a whole lot, some email etc. I agree, I don't think all that many Wintel users will switch but remember quite a few are ex-Mac users and they may be persuaded to come back. Apple's market will never be the low end and I think Jobs expressed that when he stated he wanted to sell great products at a decent margin. I think Apple can get back to the 6-8% range which would be just fine for Apple and for it's investors. I really think the iMac will help. Rich

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