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

To: HerbVic who wrote (10633)	4/1/1998 1:18:00 PM
From: Marc Newman	Respond to of 213176

HerbVic, all I can tell you is that the reasoning last year for limiting eMate sales to education (at first) was limited supplies. I think the same is true with the AIO at this point. Apple desperately needs the education market to keep unit volume up so it is a priority, especially since these machines were designed specifically for the education space. I'm impressed with the little touches on the AIO. I think education will be a pleasant surprise for Apple this year because of all the technology grants. Schools have the cash this year and Apple proves once again it understands the needs of schools. I would think AIO's will be available for general purchase within six months. Thanks for your comment about the 5500s. Appears Apple has little non-G3 inventory problem, though we don't know what the stockrooms of the mail order houses look like, of course. Apple should also get a boost this quarter from the Jan. 1 implementation of their tougher rules vis a vis co-op advertising and shorter periods of price protection. Regards, Marc

To: HerbVic who wrote (10633)	4/1/1998 2:20:00 PM
From: basiji	Respond to of 213176

<<It makes little sense to develop and produce then limit your own market.>> ...unless your production capacity is limited and/or you don't want to cannibalize the sales of your higher-margin products. If everybody could buy a loaded Artemis for $2K, what do you think would happen to sales of the desktop 233 MHz G3s? In these circumstances, you pick your market. Education is a high-volume, low-margin market that tends to produce brand loyalty. I agree that as a long-term strategy, this one sucks. But Apple needs to build a track record of profits to show the street first and market share second. It can't afford to take a hit in desktop sales. I expect that when Gossamer II is released, it will completely replace the current G3 motherboard in all but the Artemis systems, which will then be sold to the general public, and possibly a low-end desktop machine for those who want a bigger monitor. Apple will add production facilities for the GossamerII systems. With volume production capabilities, an on-line high-margin direct sales channel, and a product line that spans all the various price points, Apple will be poised to build market share. This is regardless of any assumptions about an NC, Columbus, Rhapsody or any other technology that is not currently shipping.