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

To: Edward Boghosian who wrote (7769)	1/15/1998 6:50:00 PM
From: Eric Yang	Respond to of 213173

>>I think, if Apple shows in the 2nd quarter that situation may be improving, the urgency for a CEO will diminish.<< I think if we can wait till Q2 it must not be all that urgent in the first place. <g> Does this mean: if expenses reduced to $300 million each million increase in sales is actually equivalent to a sales increase of $10 million? No. I think you're confusing yourself. Marc said that for every 1 million we save in cost we can chalk it up as an extra 1 million increase in pure profit. To earn that same 1 million dollars from sales of machines would have required Apple to sell about $5 million worth of Macs given a 22% margin. But that doesn't mean that when cost drop to 300 mil level increase in sale of 1 million all of a sudden becomes the equivilant of 10 mil. Every extra million in revenue still means about $200,000 in profit. Eric