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

To: Marc Newman who wrote (8245)	2/6/1998 3:05:00 AM
From: Marc Newman	Read Replies (1) \| Respond to of 213177

A fine piece on MacKido about "niche" markets: mackido.com The gist is that there is nothing wrong with "niches" and that Apple can be quite successful selling to them, just by coming up with products that customers want. It goes to the heart of the market share question. Marc

To: Marc Newman who wrote (8245)	2/6/1998 4:45:00 PM
From: Phillip C. Lee	Read Replies (2) \| Respond to of 213177

Marc, Currency exchange surely affects company's revenue, especially big international ones, such as IBM, Coca Cola, HP, etc. 50% of Apple's revenue was derived from foreign countries, hence the rates will heavily impact on its revenue. When you said "each company hedges like mad...", I certainly know you don't understand what the hedging strategy is. The major purpose of hedging policy is to avoid further loss during the currency swings, so the company's financial manager sets up a bottom rate. When the rate is hit, the foreign currency will be automatically converted into dollars. Then, he/she will set next "hitting" rate. It will apply on both directions. The hedging strategy can also apply on your personal investment. If you buy 500 share of Apple, then buy another 50 contracts of Put, then it matches the criteria of hedging method. During the quarter report season, have you ever heard those companies talking about the impact from the exchange rate, from CNBC, CNN etc.? The rates are so important that big companies like GM, IBM, Ford, Coca Cola's CEOs often encourage U.S. Center Bank to stablize if not lower U.S. dollar value. Well, still, the current trend of decreasing U.S. dollar value will benefit to Apple no matter how you calculate and convert to U.S. dollars. Phil