Apple Inc. Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Apple Inc.

AAPL 273.40

-0.1%

Dec 26 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Pravin Kamdar who wrote (16676)	8/14/1998 11:28:00 AM
From: Eric Yang	Read Replies (1) of 213177

"I agree. If you assume that Apple makes $200 from each iMac, it will take the sale of 500,000 iMacs just to make up the $100 million ad campaign. In other words, no net iMac profits for this year." First of all, the $100 million spending is spread over the course of Q4 98 and Q1 99. I think about half of that amount will be spent this Q for the intro and the other half for Christmas season. Another point to consider is that in recent years Apple has an annual ad budget of $140-200 million. (It should be pretty high for fiscal 1998.) That comes out to be about $70-$100 mil budget for a 6 months period. Apple simply shifted some of its regular ad budget to fund the iMac campaign and added a few million to be make it an aggressive campaign. Thus I don't think the $100 mil ad cost will have much of a negative impact on the quarter. The benefits far out weight the marginally higher cost. Eric

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next