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Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?

To: ptanner who wrote (28454)	7/20/2000 9:10:52 AM
From: Evolution	Read Replies (3) \| Respond to of 213176

Are you sure Apple Store charges sales tax to all states? Definitely! Apple charges sales tax to all states. But of course they charge the respective sales tax for the state you're in, so if you state has 0% sales tax, Apple will charge 0%. A no-brainer... As for the cube, is Apple pricing a mistake? For sure, they chose to make it a high (probably very high!!!) margin item. Maybe they figured that the market for this machine was people who care above all about the look and coolness factor, probably people having high-priced contemporary furniture in their home, or hi-flying executives in their office. Or again all those people who have made a killing in the stock market the last few years who will feel they can afford an expensive foolish purchase. The high price guarantees that not many people will have the cube, thereby creating a "select club". People buying the cube will likely go with an expensive flat panel screen. Apple will not likely sell many Cubes, but for each cube they sell, they may do X times the margin they do on some other machines. Apple may sell 50,000 cubes and make as much money as selling 200,000 G4 or 300,000 entry level iMacs. Yes, it is a bit like the 20th anniversary Mac, but that one was too under-powered, and it was not marketed by Steve Jobs!!!! Besides, I don't think Apple margin on the 20th anniversary was high. One problem was that it was bundled with the hi-priced screen. The only negative I see for the cube, is that it will fuel the idea that Apple sells overpriced computers (watch the Mac-basher articles real soon now), and some people will believe that and shy away from the Mac altogether. The cube will serve as an eye catcher, and turn some people to consider buying a Mac. Once they're hooked, most of them will end up buying a G4 tower or an iMac. Look to see the cube appropriately placed in upcoming movies and ads (not only Apple's). The cube will reinforce the idea of Apple as an innovator. Many people don't buy into this idea yet... This being said, Apple has plenty of latitude to adjust pricing of the cube as they see fit to attract additional Mac buyers, without cannibalizing into other product lines (tough call!). Don't complain about the cube pricing. It is just not for everyone. But I think the cube is for me, not because I am going to buy one, but because the cube will help the bottom line and AAPL share price. And if it does this nicely, I may actually make the foolish buy and get a cube... e.

To: ptanner who wrote (28454)	7/20/2000 1:44:23 PM
From: Zen Dollar Round	Respond to of 213176

Article posted earlier noted the 450 model in stores. Are you sure Apple Store charges sales tax to all states? Since I live in a no sales tax state this would seriously discourage me from supporting Apple by buying direct. Yes, I believe that is contrary to earlier reporting I read on the issue, the Cube will be sold through retailers. In fact, it's highlighted at Outpost.com on their home page. Heh, of course Apple wouldn't charge sales tax in a non sales tax state, but aren't there only a few states without it? Oregon and Alaska are two, I'm not sure of the others. Unless the Apple Store offers flat-rate shipping, I'm sure the cost to send to Alaska more than offsets the lack of sales tax there, as it would for most things.