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

To: Phillip C. Lee who wrote (8193)	2/4/1998 2:34:00 AM
From: Marc Newman	Read Replies (1) \| Respond to of 213176

Phil, I hope the estimates stay where they are or are even lowered (though not due to an Apple earnings warning of course). You, Eric, and others have shown that Apple can make those numbers with even $1.4 billion in revenues. And the 300,000-350,000 G3 figure that Jobs mentioned is a huge start towards that figure. But there are x factors--the older 603 inventory with little education buying this quarter to sop them up, the moribund PowerBooks, and that SEC filing which indicated a $30 million charge. I still fear an inventory write-down as well. After all, this is the annual kitchen sink quarter. I could see your .33 happening though, because, well, the kitchen sink has been pretty much emptied by now. If they did hit .33, the company could make a good run at $200 million profit for fiscal '98. I also am starting to see how Apple might be able to go even further than the $13 million more in expenses they wanted to cut. We've got the reduction of the co-op dollars by 75%. This started Jan. 1. We've got more across the board layoffs, as reported in MacWeek. O'Grady said that these cuts were deeper than the MW article made it sound. We've got the Claris layoffs--300 more highly employable souls let go from the mother ship. We've got lower administrative costs from not having to service 2000 Sears, Best Buys, Circuit Cities, Computer Cities, etc. Plus no new accounts are being set up as there is a freeze until June for new resellers. They also get the interest on the unpurchased coffee and donuts for the delayed shareholder's meeting. One month and counting. Marc