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To: Alomex who wrote (18385)9/23/1998 12:03:00 PM
From: Andrew Danielson  Read Replies (1) | Respond to of 213177
 
<So we assume they spread it over the next four quarters we plug that number in Eric Yang's estimates and we get ... flat earnings per share. >

No, no, no. You're operating under the faulty assumption that the $100 million is over and above the NORMAL advertising budget. It is not. It is merely the total. Therefore, you must first figure out how much higher $100 million is relative to AAPL's normal budget for advertising.

Andrew



To: Alomex who wrote (18385)9/23/1998 12:06:00 PM
From: Travis  Read Replies (1) | Respond to of 213177
 
So we assume they spread it over the next four quarters we plug that number in Eric Yang's estimates and we get ... flat earnings per share.

It is my understanding that the $100 million campaign is a part of the existing campaign-not an additional $100 million on top of current ad spending. So regardless of this we would still have advertising expenses-this Q it's just slightly higher. I could be wrong-maybe Eric can confirm/correct this.

-Travis


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