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

To: Marc Newman who wrote (12875)	5/6/1998 2:14:00 PM
From: Mark Palmberg	Respond to of 213177

Just got back from the announcement. Jobs rocks. iMac rocks. Filemaker is on board the iMac. Wow. Just wow. Mark

To: Marc Newman who wrote (12875)	5/6/1998 2:30:00 PM
From: Alomex	Read Replies (1) \| Respond to of 213177

If the IMAC's lower margins drop us to 23% in Q4, but the surge in orders (my mom will be getting one, I can say that, right now) could bring us close to $1.7 B in revenue ... Let's do the math. At $1300, an increase of $250 million in revenues means that Apple would have to sell 200K of those babies. But some of those sales would cannibalize on G3, so it would have to sell, I'd say, 250K IMACS to be close to $1.7 billion in revenue. I'd say 250 thousand IMACS sold in one quarter is somewhat high, but within reason. Looks like it could be close to a $100 million profit to round out the fiscal year. Now, for profit, the margins on those extra $250 million in revenue from IMAC must be razor thin. The lower end of the consumer market is just like that. I'd say are below 10%. Now since it would cannibalize into other sales I'd say the net contribution to the bottom line is less than $20 million. I don't think we'll see $100 million in earnings thanks to the IMAC.