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More info?)
"david" <ihate@spamo.com> wrote in message
news:151220040442310643%ihate@spamo.com...
> In article <AM2dnTFooO14ICLcRVn-pw@adelphia.com>, reddred
> <opaloka@REMOVECAPSyahoo.com> wrote:
>
> > "Garrett Cox" <garrcox@yahoo.com> wrote in message
> > news:2004121017594216807%garrcox@yahoocom...
> > > iPod isn't a money maker neither is the iTunes music store. It's kind
> > > of a whack marketing chain. At least this is how my Apple sales rep
> > > explained it to me. The iTunes music store helps sell iPods which in
> > > turn helps sell Macintoshes.
> >
> > Well, that's the theory, but most of Apple's significant wad of ready
cash
> > came from iPods this year, not macs. And only a very tiny bit came from
> > iTunes.
> >
> > So what's the next rabbit from the hat?
> >
> > jb
>
>
> But separating out the iPod earnings is hard to do, and it something
> the company has not done.
We know that Macs represent roughly half of Apple's sales. Sales for macs
are up marginally this year, like the PC industry, but Apple's operating
income has gone up roughly 400 percent, and revenues rose 33 percent.
Parts costs for computer manufacturers have gone up, so the margin on the
machines is lower, and lower still because of demanding new price points. I
think it's logical to assume that the margins are pretty big on a box like
the iPod. There's not much in there, and most of the R&D was in design. That
huge rollout, a 400 percent increase in income, is not due to macs or logic
express taking over the world. And the 1/3rd increase in revenue is not due
to macs being sold, it is due to relatively cheap little boxes being sold
for $400 apiece.
>I know I could probably get by on the interest generated by $5
> billion ;>
I sure would have a kickass studio.
>
> As to the next rabbit, Wall St. says it's lots and lots more iPods.
> Apple with sell more in 2005, and supposedly even more in 2006 and even
> more in 2007. Personally, I think that's an easy one.
>
The price points are going to come down, they have to. I'm wondering if
we'll see more of the iPod licensing like Apple and HP have done.
> And those Apple Retail Stores are boosting their numbers every quarter,
> and the company continues to open more.
>
I don't know if those are making money or not yet.
> Add to this what Wall St. is calling "a halo effect" - happy iPod
> owners become a source of more Mac sales. And Jobs obviously has a few
> more tricks up his sleeve. A kind of natural iteration imo is a combo
> iPod/Cellphone.
You can go anywhere with it, I'm guessing a larger screen and some kind of
expansion port for wifi. That would fit in with a cell, but they might have
to partner with someone to make it work right.
>
> Given the huge run up in AAPL the past 2 years - trust me, if you owned
> the stock you noticed it ;> - there was a surprising article in the
> Wall St. Journal 2 days ago intimating the stock has considerably more
> upside.
I think there's a lot more growth, but nothing like this year. They need to
make another great big fat rabbit, or they need to buy someone.
jb
/cnews.canoe.ca/CNEWS/TechNews/TechInvestor/2004/10/13/667793-ap.html
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