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"But it looks like underpromise/overdeliver has bitten the stock. Time to buy!" --Not really. It just sound that the market is saying: "in time a recession,
by ardit33 19y ago
"But it looks like underpromise/overdeliver has bitten the stock.
Time to buy!"
--Not really. It just sound that the market is saying: "in time a recession, people have hard time to justify spending 1,700 in a useless laptop, or more money on expensive stuff." Since apple represents the medium and higher end spectrum on personal computers, people will be much much more price sensitive to pricing.
The cheapest usable windows laptop, about $400. The cheapest Mac, about $800, making it almost a luxury good. In hard times, it is the luxury stocks that gett the beatings. Apple will have to either sell less laptops and gadgets (fewer people will be able to afford or justify the extra $$), or drop the prices (and margins) to the current products.
- deleted 19y ago[deleted]
- falsestprophet 19y agoYou don't understand! The MacBook Air fits in a manila envelope.
- jfoutz 19y agoWell, yes and no. An old employer of mine used to say there's always work for the top 5%. I'm pretty sure apple will be able to hang on to the top 5% of the market. The top 5% can afford apple in spite of recession. Heck, even in the good times, The CEO gets the macbook pro. everybody else gets dells. I would bet up to 43 cents the CEO continues to get the shineyest newest toys ever year, while grunt staff's computers are kept in service an extra 6 months to two years to save on costs. Now, if you'd said they make their money from ipods, then I'd completely agree.