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

To: Richard Habib who wrote (17025)	8/21/1998 3:41:00 AM
From: Eric Yang	Respond to of 213182

"The reason I asked Eric about that one max revenue qtr was to get a feel for Apple's manufacturing capability. Eric comes up with 1.3 million units yet were having trouble already." Rich, I think there are two separate issues: Long term production capacity and short term capacity. I don't think Apple's factories are anywhere near running at full capacity yet. They can always add more shifts, add a few more lines, upgrade their system burn-in equipment or outsource some of the assembly works. In the long run, market demand is what sets the production rate. Apple will ramp up production to a level that will allow it to meet the demand. However these things take time to implement. And if the workers are going on vacation (for weeks at a time) and the supply of some components is tight you can see how we have some short term production issues. I think we're finally getting to the point where these short term issues have been resolved and that production of all three product lines are being ramped up. Barring any supply issue with the new 1.9V chips from MOT and IBM I think Q4 will be just fine. Eric

To: Richard Habib who wrote (17025)	8/21/1998 7:43:00 AM
From: Sam Scrutchins	Read Replies (1) \| Respond to of 213182

I suspect Apple could sell 400,000 if they can make them. I have real doubts they can make them. Richard, Let's assume that Apple is/was making 50K units as of August 15th (might be more now??). That gives the company six weeks in Q4 to produce at that rate, or 300K units. Add to this the reported 150K ready to go as of August 15th, and one gets 450K units. Given even that some of this production will never make it to the stores by the end of Q4, it still appears to me that 400K unit sales is attainable. Have I missed something here? Sam