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

To: HerbVic who wrote (13671)	5/15/1998 8:31:00 PM
From: Bill Jackson	Read Replies (1) \| Respond to of 213182

A> Helloooo. Bill ... the Wintels that compete in performance with the lowest priced Macintosh G3s are the highest priced Wintel boxes. A: In raw processing power yes, however the installed base of programs affects this. The huge base of WIntel programs that are not available on G3 also make the Wintels sell better. With the specialsed graphics programs that are not sold for WIntel the G-3 wins by default. With many other people they measure the Mhz and ignore the true performance superiority of the G3 at the same or lesser Mhz(a 233 G3 can beat a 350 Pentium in many tasks due to betterarchitecture) the essence of marketing is to sell your strengths and cover the weaknesses, whch Wintel does well. B> Picture this: You're a dealer. You have two computers left to sell today. One is a Macintosh. The other is a Wintel. The Macintosh is the bottom of its product line and costs $1600. The Wintel is the top of its product line and costs $2100. Performance is roughly equal. The Macintosh nets you a 23% profit at its price, while the Wintel nets you 17% if the customer has not already checked around for prices. A customer walks in and is completely open minded. Which computer do you try to sell? Most would sell the larger margin product. Most Apple dealers took Compaq or eagle or another Wintel as a sales product if the client balked at the Apple due to cost or program considerations. They figured it was better to lose the Apple sale to another product in the store instead of having the customer walk to another store. C & D> Lag has penalized Apple for some time. That is why I said the Wintel camp has gotten a lot of mileage out of being all the same. Now that there is a glut on the market taking the bloom off their rosy profits, the penalty is no longer Apple's. The saturation of which you speak is here to stay. The deep discount sell off of Wintels for the rest of this year will steal sales from next year as well. The glut, that started out as a box glut, runs through the entire channel's raw materials, including CPUs hard drives, monitors, printers, the works! Over production capacity in a market with a declining growth rate. [25% last year vs 13% this year] All of the Wintel camp will get hurt - AS A DIRECT RESULT OF BEING ALL THE SAME. Different is good this year, especially if different is better faster and cheaper than the higher end product of the competition. The channels will hurt the customers will gloat as they will get great deals, and there will be cross pressure on APple to match the price drops. If APple does not also drop prices they will be hurt as well. A collateral casualty. But the dumping is in full swing as we speak. Soone there will be auctions of containers of all kinds of WIntel build products. Even Dell will contract in sales and might have to go to an under$1000 box. Dell will stay profitable as they have only 6-10 days worth or product in the shipping channel(except for cases and power supplies) and they will down purchase and sell less and still make money. Their multiple will take a huge hit within a month or so, perhaps even earlier. The Macintosh is the technology leader both in OS usability and strategy, and in pure processor horsepower and power consumption efficiency - AND IN PRICE IN THE MIDDLE AND HIGH END. Under $1000 Wintels are inventory closeouts. There are under $1000 Macintosh inventory closeouts available also. Try this link on for size: yahoo.com. or this one: smalldog.com I will chek them out later. It is current stock falling in price on the wintel front, however I suspect it is older maccery being cleared. Bill