Apple's absence nibbles core at Macworld

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Actual numbers prove you wrong

Here we go:
http://www.businessweek.com/magazine/content/04_29/
b3892073_mz011.htm

Given the ubiquity of the elegant little music player, it's easy to
forget that Apple is still at heart a computer company. While
commanding just 2.8% of the global PC market, the company's
line of Macintosh PCs -- including the iMac, PowerBook, and
PowerMac G5 -- still accounts for 58% of its overall revenues.

...

Analysts expect Apple to rack up $235 million in net earnings
this year, double last year's tally. But Apple relies more on
interest from its $4.6 billion cash horde than do rivals. Backing
out its expected after-tax $34 million in investment income,
Apple's net would fall to $201 million on expected sales of $8
billion, says Albert Meyer, a general partner with 2nd Opinion
Research. What's more, if the company were forced to expense
options, as expected, that number would fall at least 50%, to just
$100.5 million, says Meyer.

...

What's more, having evidently made peace with its meager
market share, Apple is now clearly milking the Mac for profits.
After all, its PowerMac and PowerBook models reap fatter
margins than the iPod, especially when loaded with Apple's iLife
suite of software. The company also is charging higher
premiums for its PCs than are rivals. Two years ago, says First
Albany Capital Inc. analyst Joel Wagonfeld, the average selling
price of a Mac was $154 higher than that of a Windows PC. Now
it's about $400 higher.

...

Shares are still up 42% for the year, compared with Dell's 2.7%
rise. Rather than demand Microsoft-style market share or Dell-
like operational consistency, investors value Apple's cool
products.

Posted by: tic swayback   Posted on: 07/13/04 You are currently: a Guest | Members login | Terms of Use

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