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Technology Stocks : Apple Inc.
AAPL 278.89-0.6%2:59 PM EST
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To: yofal who wrote (22399)1/14/1999 8:50:00 AM
From: MeDroogies  Read Replies (1) of 213173
 
It is comparable. It isn't like comparing how much food a 200 lb. man needs compared to a 300 lb. man.
Both Dell and AAPL know the "likely" number of units to be shipped. They plan their inventory that way. It helps them arrange for storage and shipping contracts. If they can keep inventory down, they reduce storage and production costs. On the other hand, if demand suddenly zips up...they could be in a bind.
Of course, that is a quasi-positive thing. If their inventory suddenly goes negative, they can use increased demand as a "reason" to keep prices higher.
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