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

To: Alomex who wrote (22620)	1/18/1999 2:33:00 PM
From: HerbVic	Read Replies (1) \| Respond to of 213176

>>It would have been better for Apple to drop the price of the iMac to $1199 before the holiday season and maintain their number one sales ranking. << Your point is well taken. The bragging rights to being in the number one sales position for both months would have been worth a lot more than the paltry difference in margin. Especially given that the effect on Apple's margins of a $100 drop in the MAP early in December would be [at least partially] offset by increased volume. However, the flip side of that issue is the bragging rights to higher margins with increased sales in an industry with eroding margins under heavy price competition. It speaks of Apple's quality and style differentiation and its ability to sell on that. It speaks to Apple's future flexibility to drop prices as necessary. It says that, as yet, Apple seems isolated from the cutthroat pricing. There is value in this side of the coin. Stock value. Investors will take note. AAPL is being set up for breaching the 50's barrier. This should take place as soon as the unit sales surveys are out for the month of January. You can take it to the bank. HerbVic