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

To: Marc Newman who wrote (8198)	2/4/1998 9:10:00 AM
From: Phillip C. Lee	Read Replies (1) \| Respond to of 213176

Marc, You got a good point on Apple's cost reduction, which may cut another 20M+ from the previous quarter. If Apple could sell the same amount of units in Q2, (about 625,000), which means if 325,000 units from G3, another 325,000 from others in inventory or newly manufactured, then the revenue will be similar to Q1 (1.6 billion). I don't think it's that difficult because there are about 500,000 units (non-G3) sold in Q1. We discount the amount to 325,000 from 500,000 units, that is about 65% of Q1 sales on non-G3 models. In Q1, $47M net was out of 1.6 billion revenue, it is conservative to say at least similar net as well as revenue will be generated without counting savings from cutting costs you mentioned. Phil