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“Being a hardware manufacturer may be a reason for lower margins, but its not an excuse for lower profits.” ? Look, Siegler is a journalist, not an analyst. H
by ugh 16y ago
“Being a hardware manufacturer may be a reason for lower margins, but its not an excuse for lower profits.”
?
Look, Siegler is a journalist, not an analyst. He says “Apple has grown faster than Microsoft in the past which means that if nothing changes, they are going to overtake Microsoft’s profits sooner or later.” That’s a perfectly reasonable but not very well supported position, perfectly appropriate if you write for a tech blog.
Your objections are reasonable but sort of miss the point.
That one liner comment of yours was just unnecessary. You should have posted your response to me instead, that would have been much more informative.
- brudgers 16y ago>"Apple has grown faster than Microsoft in the past which means that if nothing changes, they are going to overtake Microsoft’s profits sooner or later." Not only is Siegler not an analyst, he is not a logician either. Growth is a measure of the rate of change. Were there to be no change, there would be no growth and Microsoft's profits would continue to be greater than Apple's for so long as there was no change. Siegler's shortcoming as journalist is not a tendency to poorly support his arguments, it is the utter lack of an argument in the first place. The piece is solely an apology for Apple. That this is appropriate for a tech blog, does not excuse the fact that Siegler wrote another piece of Apple fluff.
- erikpukinskis 16y agoHe's talking about a lack of change in the rate of growth, not a lack of change in the magnitude.
- brudgers 16y agoThat doesn't seem consistent with Siegler's statement, "So next quarter should produce a dip for both," because that describes a change in the growth rate will occur next quarter. Given Siegler's prediction is predicated on the continuance of"insane" growth, there really ought to be a passing attempt at demonstrating the basis for his belief.
- ugh 16y agoApple’s holiday quarter is always much better than the other quarters. If you look at the graph I linked to, you can see the regular spikes in Apple’s revenue and earnings, that’s the holiday quarter. Apple will very likely grow year-over-year next quarter while its earnings and profits will shrink sequentially. That’s the way it has always been in the last years and its not the least bit surprising. There is not really a need to justify such a prediction. You can’t just look at sequential growth.