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

To: May Tran who wrote (7597)	1/14/1998 2:57:00 PM
From: Marc Newman	Read Replies (2) \| Respond to of 213173

<<I was just thinking that Apple's decreasing revenue is probably because of the decreasing prices it is selling its computers for. For example, in 1992 I purchased a Quadra 900 for $5000, while in November I purchased two G3 minitowers with 64 MB of RAM for less than $6000.>> May, your example is a good one. I think that the key to spotting whether Apple is undervalued is not looking at market share, but looking for these kind of facts that the general public misses. Besides the big three or four boxmakers who are growing rapidly, I wouldn't be surprised if every other computer co. has declining revenue, even if they are selling more computers. Prices are coming way down. But Apple gets to buy those drives from Seagate for less too so it somewhat balances out. Aren't they getting G3s for less than the 604s as well? The key here is whether Apple can make a steady profit. That leads to share appreciation as they beat expectations and start to break down the wall of worry that Apple won't survive, that Apple is going out of business, etc. Then, we look not for increased market share (which is nearly impossible with pcs growing at 15% a year) but for increased units shipped per quarter. Can we get back to 700,000 by the June quarter? By September? Then we've got something--a viable business that needs to be more fairly valued. Marc