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

To: soup who wrote (23327)	3/3/1999 12:45:00 AM
From: Marc Newman	Read Replies (1) \| Respond to of 213173

<<I know a lot of this is corporate and education customers who get favorable terms, but those $29.95 iMacs' current floating is over 14%.>> Soup, I look forward to your report. Now, with the above are you suggesting that Apple is making a load off of interest? As I understand it, the third parties just give Apple the money up front for the value of the computer. They then get all the interest. That money goes to pay costs, make a profit, and cover the bad loans. Am I wrong? Marc

To: soup who wrote (23327)	3/3/1999 8:35:00 AM
From: MeDroogies	Respond to of 213173

Based on GE Capital's other relationships/deals, they probably offered the best infrastructure to manage leases of this sort. Therefore, in the interests of increasing share, these types of relations were mutually beneficial. AAPL still makes a bigger margin on the sale, but GE Capital (or whomever) gets some nice cash over the term of the lease... For AAPL to ramp up and manage a lease group of this type would be costly and time consuming. Looks like this was the best available choice.