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Technology Stocks : Apple Inc.

AAPL 268.55

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3:59 PM EST

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To: Murrey Walker who wrote (22505)	1/14/1999 5:35:00 PM
From: Kurt Starnes	Read Replies (1) of 213173

iMac does herald the computer appliance era. A point sorely missed by some. Henry Ford once made Model Ts in only black. I guess it was cheaper, made for simplified production and streamlined inventory systems. I would think there were some who balked at cars in assorted colors. "What is the purpose or function of colors?" the pundits might have cried. So now you can buy the exact same iMac inside, but with different colors on the outside, like a blender or a car. Maybe we will see how OS X Server network booting capabilities could extend this "appliance" classification to something more like a designer telephone. iMac sales numbers have proven that looks matter. Tales of channels overstuffed with iMacs may soon go the way of the "iMac sales sluggish" stories of yesteryear. My reasoning is that Fred Anderson is too smart to stuff the channel given Apple's illustrious history on this subject. Seems like people are just plain buying the iMac. Look ma, no channel stuffing! Even our resident AAPL analyst Eric Yang underestimated the number of iMacs shipped this past quarter. As he has shown, and as market share numbers have indicated, AAPL has been right on track with the iMac. Did the Apple executives think or could they have predicted the iMac's wild success? Apple has again set the trend and started another revolution with its 'bubble gum machines (iMac)' and a flood of iMac-esque products will soon flood the market. You may not have used a new FireWire equipped 400Mhz G3 if you think Apple has shifted its focus from the professional. GO AAPL! Kurt

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