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I think the biggest question is sustainability. The company is shifting from a business with profit margins of 30% (computers) to one with 18% (music players).

Sure, you can just take away the iPod and Apple's margins are robust again, but the iPod is really Apple's growth driver. iPod sales (even in the last quarter) rose over 200% while computer sales only went up 20%. And this discounts the halo effect of people buying Apple computers BECAUSE OF owning an iPod, so really those iPod numbers are very important.

So can Apple stay ahead of the market with pricing pressures continuing to decrease margins? Both Creative and Sony are aggressively trying to take marketshare in the music player market and rumors have started surfacing of [url=http://www.thestreet.com/_yahoo/tech/internet/10264835.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA]Google developing their own music service[/url].
Posted by: java.user   Posted on: 01/27/06 You are currently: a Guest | Members login | Terms of Use
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THIS is the year M$ dies!  NonZealot | 01/26/06
You know that's sarcasm, don't you?  Grayson Peddie | 01/26/06
Message has been deleted.  Jeff Spicoli | 01/26/06
Miss  SQLServer | 01/26/06
BIll, Steve, welcome to the joys of working with IBM  tic swayback | 01/26/06
also..  Jeff Spicoli | 01/26/06
A hint of revenge...  Brakiss | 01/27/06
There's nobody else making 3 core 3.2 Ghz  GoPower | 01/27/06
Just lame  theace18 | 01/26/06
agreed  Jeff Spicoli | 01/26/06
Yeah, Microsoft  Real World | 01/27/06
thank god  Jeff Spicoli | 01/27/06
Cash machine rolls along.  Anton Philidor | 01/26/06
sure  Jeff Spicoli | 01/26/06
Microsoft hasn't killed a competitor in years.  Anton Philidor | 01/27/06
Yep all fine at MS  Richard Flude | 01/26/06
True, but most on consumer electronics  mdemuth | 01/26/06
Surely you should be looking at growth  Richard Flude | 01/26/06
Hehe, your ABM desperation makes me laugh  NonZealot | 01/26/06
Consumer Goods  tic swayback | 01/27/06
I think nonz got it right.  IT Scion | 01/27/06
Yep  java.user | 01/27/06
The trials of success  tic swayback | 01/27/06
Well  java.user | 01/27/06
Thanks  tic swayback | 01/27/06
So Xbox makes Microsoft a Toy company  GoPower | 01/27/06
Right numbers, wrong conclusions  java.user | 01/26/06
Stocks  Loverock Davidson | 01/27/06
Me too  java.user | 01/27/06
11%-12% growth for year, says Microsoft.  Anton Philidor | 01/27/06
So now we take MS projections and use as fact  Richard Flude | 01/27/06
No shortage, plenty left on Japan's shelves  Boot_Agnostic | 01/26/06
xbox shortage ..yeah right  hipparchus2001 | 01/26/06
Yeah right  csa0307 | 01/27/06
My kids disagree, and my wife and I do to  hipparchus2001 | 01/27/06
ZDNet must have missed this  Richard Flude | 01/26/06
No they hit it.  IT Scion | 01/27/06
A new term for customers?  Cardinal_Bill | 01/27/06
Doesn't help that retailers are selling bundled sets  Boot_Agnostic | 01/27/06

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