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

To: Travis who wrote (18388)	9/23/1998 12:17:00 PM
From: Andrew Danielson	Read Replies (1) \| Respond to of 213177

<<maybe Eric can confirm/correct >> I will be happy to speak on behalf of Eric, in the form of one of his previous posts. . . from Message 5497306 First of all, the $100 million spending is spread over the course of Q4 98 and Q1 99. I think about half of that amount will be spent this Q for the intro and the other half for Christmas season. Another point to consider is that in recent years Apple has an annual ad budget of $140-200 million. (It should be pretty high for fiscal 1998.) That comes out to be about $70-$100 mil budget for a 6 months period. Apple simply shifted some of its regular ad budget to fund the iMac campaign and added a few million to be make it an aggressive campaign. Thus I don't think the $100 mil ad cost will have much of a negative impact on the quarter. The benefits far out weight the marginally higher cost. Eric ------------- So, if it's $70-$100 million per 6 month period, then the worst case scenario is an added $15 million in costs this quarter (100-70)/2 I had already projected an increase of 18 million in costs (from 292 to 310), so again, the .67 seems more like a worst-case, conservative scenario than an optimistic one. Andrew