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

To: Alomex who wrote (7914)	1/22/1998 11:48:00 AM
From: Eric Yang	Read Replies (1) \| Respond to of 213173

Alomex..I don't get it. You're saying that we may lose $80 mil due to extra boxes that Apple won't be able to sell.. Then I said that if that were the case it would be an increase in inventory and the loss would come about when Apple write it off... Then you said that because of build-to-order production line the boxes wouldn't even be manufactured. Aren't you contracdicting yourself a little bit here? The whole point of the "build-to-order production line" is that it will allow Apple to better respond to demand and reduce finished product inventory. I think usage of the term "build-to-order production line" is misleading. I think we are refering to Apple's new production model based on G3's modular design. The actual build-to-order production line accounts for a very small numbers of machines Apple is currently selling. Only G3s sold from AppleStore are built-to-order. And AppleStore only sold $15 mil of machines last quarter. Much of those sales actually came from non-G3 machines or pre-built G3 models. So even if sales from AppleStore doubled this Q due to higher number of days, built-to-order G3 still accounts for less than $10 mil of total sales. That certainly can't account for the $80 million loss from excess inventory that you spoke of. Right? Eric