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Originally posted by macmax
The 2nd one is "compatibility" ; so Apple is responsible for not knowing how to educaqte people here, when i tell them that i do everything in my mac and that it is fully compatible they stare at me in ow.

To suggest that it's 100% compatible is not really fair. They're not.

Let me count the ways...

1) Microsoft Office
While Mac Office may be mostly file-format compatible, it's certainly not price-compatible with the Windows version. It's much cheaper to acquire Office for Windows. This has me currently using Appleworks to view Word docs and I generally send everything out as PDF.

2) Microsoft Access
To my knowledge, there's nothing on the Mac platform that can open an ".mdb" (Microsoft Access) file. This is a show-stopper for many small businesses. Yes, there is FileMaker, but nobody is going to rebuild all their stuff just to be able to make the Switch(TM).

3) Windows (SMB) Networking
Yes, OS X supports SMB, but it's far from perfect. Many bugs and annoyances exist. This is especially true when connecting to a machine outside of the local network. Ironically, it seems more reliable to connect a PC to a Mac using SMB than to connect a Mac to the PC.

4) Software Titles
While many good titles exist exclusively on the Mac and many good titles are cross-platform, there are many, many others that simply don't exist on the Mac side or exist only as older versions on the Mac. This can be very annoying to businesses when they know that solutions exist and they can't use them. Virtual PC can "help" in this area, but it's a kludgey solution and folks might be better off by placing a $500 PC under their desk next to the Mac. Windows terminal services can obviate the need for a second monitor.

5) Hardware
USB has gone a long way in helping the hardware world to make cross-platform products. However, the drivers are still a problem. Apple needs to go even further in making it as simple as possible for vendors to make high-quality Mac drivers. Furthermore, Apple should have folks dedicated to open source projects that attempt to create drivers for non-supported hardware.

On the bright side, Macintosh's are now more compatible than they've ever been. SMB and printer support is better with each OS X release. I can only dream of a day where it's simpler to use Windows networking on a Mac than it is on Windows!
 
I'm confused.

Now I am a retard at all things finance, but it seems to me, that in the worst economy in almost two decades, and certainly in the worst economy since the 90s net/tech revolution, that pretty much breaking even while having 4.5 billion in the bank, all while pumping tons of money into R&D for long term growth, is actually very, very good.

What is the problem? Interest rates will go back up.
 
Maybe I have it wrong - but the mac users seem to be in the creative area, the schools and at the home front.
I do not yet :-( see the day that big corporations are switching to the mac. In any event, then if the artsy people around us are content, schools can do what they need to do on a mac and we at home can use office for mac, then what is the point to be griping about compatibility issues ?
I love my mac, it works super-well, and my company runs entirely on mac.

If we get more compatibility for the 'special programs' fine, if not to hell with the Windows world. We all seem to be able to do just fine, there will always someone finding something that does not work on a mac. So what.
The argument about Access is very valid, but MS are not putting Access on the mac for precisely that reason - that we can continue with our self-flagellation, and that would-be-switchers who read these threads have something to turned off.
Mac is a terriffic experience. That is what Apple are trying to sell. Let's give them a helping hand
 
Switchers

There are many, many good reasons to switch. However, the worst thing that we can do as Mac-heads is to mis-lead a potential switcher by suggesting that the platforms are 100% compatible.

Users should switch to the Mac on its primary merits.

1) The Best user experience
2) The Best bundled software
3) Better OS/App reliability
4) Faster-improving technology (Apple is moving much faster than MS these days in improving their systems)
5) Superior hardware/software integration
6) Higher Quality software
7) More overall compatibility (Mac/Unix/Windows)
8) Inherent PDF capability (great for print)
9) HUGE open-source capability (so many projects to build from)

100% compatibility will never happen and people basing a buying decision on that are bound to be disappointed.
 
Originally posted by snahabed
I'm confused.

Now I am a retard at all things finance, but it seems to me, that in the worst economy in almost two decades, and certainly in the worst economy since the 90s net/tech revolution, that pretty much breaking even while having 4.5 billion in the bank, all while pumping tons of money into R&D for long term growth, is actually very, very good.

What is the problem? Interest rates will go back up.

Take away the restructuring fees and they made a profit. You're right, not bad for the economy we are in. Dell is the only other pc make making any money. With Gateway closing stores left and right, Apple is actually rocking.

You're aren't confused, other are.
 
Re: Re: Re: Re: Re: Re: Apple 1st Quarter Results and Conference Call

Originally posted by lmalave


No one's forced to buy it, but they can certainly be bamboozled. When I went to the Apple Store to check out the new iBooks first hand, there was a young woman next to me, clearly not computer-savvy, that had decided to buy the $999 iBook. That's when the Apple Store salesperson really kicked into high gear - trying to sell more memory. Then when she agreeed to more memory, out comes the "well, it's $40 to install, but if you get Applecare for $300 installation is free". The poor woman was like umm...errr....ok.

Go to Best Buy or Radio Shack, and they'll try to sell you an extended warranty on anything you buy. A guy once tried to sell me an extended warranty on a cordless-phone battery; another one on a $20 digital thermometer. They do this for a basic reason: the margin on these warranties is huge, so most stores give bonuses to salespeople who sell them. Doesn't matter how many computers you sell, your bonus is based on sales of extended care.

My first question when asked is usually: "Do you have so little confidence in the quality of the product I'm buying that you think I need to buy an extended warranty?" That usually shuts them up. If not, I just keep repeating the question, phrased slightly differently. If they persist, I tell them that I'd better not buy the item if they're that certain it will break outside the regular warranty period.

Long and short of it is that unless you are extremely risk averse, extended warranties, like Apple Care, are a waste of money. Sure, things break, but usually in the first few weeks, when they're under the regular warranty. After three years, you probably don't want the thing repaired, you want an upgrade anyway.
 
For all the nasayers...

Yes the Q1 totals dont look good but look at why the totals are the way they are. Apple actually made money this past quarter but do to the restructuring they had fines which caused the loss. I know right off the bat this looks bad but its a one time fee and sets the stage for the next quarter. this doenst mean that "things look bad or apple" or that "This is the end of apple". Trust me Apple is stronger then ever and has all the pieces in place to grow. Read the entire article not just the headline.
 
Re: Re: Re: Re: Re: Re: Apple 1st Quarter Results and Conference Call

Originally posted by lmalave
That's when the Apple Store salesperson really kicked into high gear - trying to sell more memory. Then when she agreeed to more memory, out comes the "well, it's $40 to install, but if you get Applecare for $300 installation is free". The poor woman was like umm...errr....ok.

You haven't done much electronics shopping lately, have you?

"Would you like an extended warranty" effectively replaces "Would you like fries with that" in the fast food employee to electronics sales rep. transition guide...
 
Originally posted by Telomar


They made ~14%p.a. on the investments they had. Equates to around $150 million of $1.47 billion in revenue. It's noteable.

Unfortunately they are a company that if they didn't have their investments would be posting some considerable losses. That's a problem.

Notably they make $150m/q interest and gains, spend $125m/q on R&D, and use the retail expansion and R&D to take HUGE tax deductions so their huge 27% margins result in only an $8m taxable event.

This company is transferring operational efforts to a huge technology and financial base. This is long term thinking.

Rocketman
 
Seems to me Apple should start opening stores at a faster pace. Unload some of that cash and dump it into real estate. It worked for McDonalds for a long time. I know they're hurting now. (McDonalds that is. gee the economy is bad.) Can't wait for the store to open on Michigan Ave in Chicago. Right now there's an empty lot with some scaffolding and a big Apple on it. For those who aren't familiar, this is one of the greatest retail strips in the country and this store is sure to be magnificent.

More store. More stores.
 
Originally posted by railthinner
More store. More stores.

And, yeah, they're only losing a net $1million per store, per quarter, so why not build more? Eight fewer stores and Apple would not have shown a loss last quarter.

There is a down-side to putting Apple Stores in every high-rent mall in the US. I do believe their strategy of increasing brand awareness is smart and will pay off, but there is a point of diminishing returns where the next store costs more than it is worth in brand building.

IMHO, Apple's doing a good job of opening stores at a brisk but not breakneck speed.
 
Originally posted by railthinner
Seems to me Apple should start opening stores at a faster pace. Unload some of that cash and dump it into real estate. It worked for McDonalds for a long time. I know they're hurting now. (McDonalds that is. gee the economy is bad.) Can't wait for the store to open on Michigan Ave in Chicago. Right now there's an empty lot with some scaffolding and a big Apple on it. For those who aren't familiar, this is one of the greatest retail strips in the country and this store is sure to be magnificent.

More store. More stores.

This is a bad time to invest in real estate or bonds. If interest rates tick up the market for real estate will dry up in a big hurry and given RE is a trailing sector and the market recently crashed severely, we are expecting the other shoe to drop really soon. THEN Apple should buy RE :)

When interest rates rise, lower rate bonds drop in principal value. They should be trading out of longer duration bonds into shorter duration bonds for their holdings at this time and be prepared to hold them to maturity.

This is a fairly good time for stocks, and for many countercyclical products. Service businesses can be good and anything that gets paid for right now is fairly good.

Does anybody have links to portable FW800 raid devices which have been released or will be about the same time as the Al17? Thanks.

Rocketman
 
Originally posted by jettredmont


And, yeah, they're only losing a net $1million per store, per quarter, so why not build more? Eight fewer stores and Apple would not have shown a loss last quarter.

There is a down-side to putting Apple Stores in every high-rent mall in the US. I do believe their strategy of increasing brand awareness is smart and will pay off, but there is a point of diminishing returns where the next store costs more than it is worth in brand building.

IMHO, Apple's doing a good job of opening stores at a brisk but not breakneck speed.

Given Apple's strategy of stores within 15 minutes of 85% of the population they could accomplish this with standalone stores in low rent parts of town (and even add valet parking). It would probably STILL save 60-70% of the rental cost since many mall stores take rent + % of sales!.

Heck, just locate next to the top 40 Radio Shack outlets :)

Rocketman
 
Originally posted by Rocketman


Given Apple's strategy of stores within 15 minutes of 85% of the population they could accomplish this with standalone stores in low rent parts of town (and even add valet parking). It would probably STILL save 60-70% of the rental cost since many mall stores take rent + % of sales!.

Heck, just locate next to the top 40 Radio Shack outlets :)

Rocketman

I am very impressed with your input, Rocketman, and believe you make some very compelling arguments. I guess we'll just have to see.
 
Obviously there are those with more financial know-how than myself here but I believe part of Apple's strategy of holding cash was for times like these. And it is when you start to take a hit on interest earned that you invest that cash. Not in a long term bond which does nothing to expand the nature of the business, unless Apple buys a bank. Rather you invest in expansion; stores. Homes have been selling like mad (slowing down now) the past six or more months because of interest rates. Hasn't the same worked in commercial real estate? And I agree there are other high profile store opportunities outside of blood sucking malls, but I wouldn't put anything in the strip mall, where most Radio Shacks are located for example, unless your replacing a boarded up Gateway just for the sweet picture of triumph.:)
 
some of you seem to be confused about this report. this is positive not negative. apple did great. profit up. sales up. cash up.

try reading the report before assuming things are bad for apple. i found this summary good.


Analysis: Behind the Numbers - The Financials and Figures of Apple's Q1
by Remy Davison, Insanely Great Mac
January 16th 2003

Related Articles
- Apple reports small loss after charges
- Apple: Back to Performa-Land?
- Apple Financials May Signal End of Tech Drought
- Is the 'Switch' Campaign Falling on Deaf Ears?
- Apple Hardware 2002: Steady as She Goes
- Apple nabs 5.2% of desktop market
- Apple Workforce Up - and Power Mac Profits Down
- Op-Ed: Apple Screwing Resellers to the Tune of 8%
- Education: One little contract at a time
Apple CFO Fred Anderson provided a lot of interesting numbers in his conference call
detailing Apple's Q1
2003 results.

Apple in fact made a gross profit of $11 million or 3¢ per share, in line with market
guidance. The loss was attributable to non-recurring items, including a $17 million after-
tax restructure and $2 million in accounting transition adjustments.

Revenues were $1.47 billion for the quarter, a 7% increase on a year ago - an excellent
performance, according to Anderson, particularly given the softness of the PC market.

Macintosh shipments

Apple clearly place eMac, iMac and original CRT iMac into a single product category, somewhat confusingly known as 'iMac.' The breakdown of iMac sales was as follows:

- CRT: 58,000
- eMac: 106,000
- LCD: 134,000

The 17" LCD iMac was the most popular model, which indicates the rumor regarding EOL for the base CDRW iMac - and the 15-incher itself - may have some credence.

Strong demand for the iBook continued, although Anderson didn't mention a figure. A little math tells us that the figure is around 187,000, which represents a strong performance. The $999 price-leading iBook made a difference, the CFO said, while the 14.1" model was also successful.

The PowerBook G4 received a boost from the late-2002 revamp, and sales climbed once again to top the 100,000 mark. One analyst expressed his surprise at the strength of PowerBook sales; in reply, Anderson noted the 'value equation' of the revised PBs, particularly given their lower price points.

The Power Macintosh line continued to disappoint, with one major exception: XServe. Anderson thought the PM's sales performance "disappointing," with 158,000 units shipped, including XServe. Shipments for the Power Mac line as a whole were down 25% compared to the year-ago quarter.

The reason? Unlike Jobs' not-so-oblique remark at the commencement of his keynote, Anderson didn't keep his powder dry when accounting for flat Power Mac sales. Plain and simple, Pro customers are waiting for QuarkXPress 6.0 for OS X.

XServe is a shining beacon in the Pro sector, however, with sales up 350% and shipments at 6,000 for the quarter. Revealingly, Anderson did disclose a revised server product would ship this quarter, although he would not be drawn on details. Asked about Apple's R&D spending on XServe, the CFO replied that it was not a figure he would disclose.

Not a Mac, but the iPod is like a 'fifth Beatle' in the Apple family. 216,000 iPods shipped and now, Windows has finally beaten us. Yes, Windows iPod shipments now, for the first time, account for over 50% of all 'Pods. Best Buy was mentioned by Anderson as one of the key retail outlets responsible for getting iPods into Wintelians' hands.

Geographical revenue breakdowns

In the America's revenues were up 5% on the year-ago quarter, with Apple Asia-Pacific
sales also up a significant 27%. The US was up 16% including education and Apple
Retail. Excluding Education (the December quarter not being an Ed-purchasing season),
US sales were up 21%, including Apple Retail. Europe and Japan lagged, however;
European sales were down 3% and Japan a massive 24%. However, the latter figure is
more indicative of the Japanese market as a whole, as Apple CPUs continue to perform
strongly, relative to the rest of the PC market.

Unit sales, inventory, expenses and revenues

Apple shipped 743,000 CPU units for the quarter, almost in line with the year-ago
quarter. Sales were flat, but inventory declined 11% during this quarter, which was a
strong performance, in line with expectations. Only 4 weeks of inventory is in the
channel, with 4.5 weeks on a forward-looking basis. Apple's target is 4-5 weeks of
inventory.

The CFO noted Apple's strong revenue performance in a flat market, and attributed it to
four key factors:
- Strong 'beyond the box' revenues
- Higher average selling prices
- Greater range of products
- More direct sales

The LCD iMac also increased revenue margins; pre-MWSF 2002 CRT iMacs were selling wholesale for $876; LDC iMacs fetched $1,195 in Q1 2003.

26.3% of total revenues were 'beyond-the-box' sales. The strongest performers in the 'beyond-the-box' revenues were iPod and software, but Anderson also noted that CompUSA 'beyond-the-box' sales had improved considerably.

Gross margins were up to 27.6%, due to three main factors: lower component costs; increased PowerBook sales; and a higher proportion of direct sales.

Operating expenses were $443 million, in line with previous guidance, including $23 million in pre-tax restructuring. The restructuring including the closure of Apple's Singapore manufacturing operations; and $6 million associated with PowerSchool 'restructuring' [read: sackings - Ed.].

Lower interest rates were canvassed, particularly in light of Apple's enormous treasure chest, now at an impressive $4.62 billion in cash and short-term investments. Cash is up $125 million. Anderson said that declining markets had forced the company to realize some of its investments earlier than anticipated (i.e., as share prices and investment dividends fall). Questioned about the outlook for short-term investments and interest rates, Anderson said he thought interest rates would not fall further, but that the investment climate would remain flat throughout the year; however, he was clearly reluctant to speculate further on this point.

Education

Whereas in Q4 '02, Anderson was decidedly downbeat about Apple Ed sales, there was a more positive spin this time around. Portables account for over 33% of Macs sold in education, "much higher" than the PC education average. He also noted that the free OS X for teachers had been overwhelmingly successful, with over 300,000 copies shipped to educators.

Outlook

The CFO gave the usual cautious, if not pessimistic, guidance for the current quarter. He said revenues and gross margins are expected to be flat, despite anticipated strong sales of the new PowerBook, which Apple is counting on to contribute substantially to revenues.

Lower interest returns on cash investments are expected, with a slight profit projected for Q2 2003. The message Anderson pushed very strongly was that Apple would not sacrifice its long-term growth strategy for "quick profits." By this, the CFO meant Apple's investment in human capital and R&D, with the budget for the latter approaching $500 million per annum, a figure which approximates the expenditures of Apple's glory years.

As a footnote, Anderson added that not all the data was in yet, but that December wasn't a strong quarter for the PC industry as a whole.

Endgame

Now a $6 billion company, Anderson was asked what the end point of Apple's strategy was, particularly with regard to Apple's Retail Stores. Anderson regarded Apple's various initiatives as interrelated, complementary themes: Retail; "our own people" in 174 CompUSA stores selling "our differentiated product".

Apple is "gaining market share", said Anderson, with Retail "controlling more of point of sale." The Switch campaign, vistors/buyers at Apple Retail Stores - they're all closely tied in. And Anderson believes that Apple is gaining "real market share" out there.

The Bottom Line

Steady as she goes, is Anderson's mantra here. Invest in R&D. Ensure consistent profitability. Increase 'beyond-the-box' revenues. If the industry ever turns the corner, Apple should be in a good position to cash in on its investments and strategies.

In a nutshell, this means we'll continue to get spectacular products from Apple. But if you're in the stock market for some quick returns, you're better off somewhere else on the Nasdaq, buddy.
link
 
Originally posted by Rocketman
Given Apple's strategy of stores within 15 minutes of 85% of the population they could accomplish this with standalone stores in low rent parts of town (and even add valet parking). It would probably STILL save 60-70% of the rental cost since many mall stores take rent + % of sales!.

Of course, since Apple sells a high-end product, they wouldn't sell any computers in low-rent parts of town.

That's the whole reason for the failure of Gateway's stores. And everybody knows that Apple is more expensive than Gateway. :)

Not to mention that foot traffic is key to what Apple is doing with its stores. The best place to garner that is the mall.
 
Let's stick to reality, OK?

"if bush's administration don't start a f****** war"

>>>>>>>>>>

Really.... Are Mac sales directly linked to Saddam? :eek:
 
Originally posted by AmbitiousLemon
some of you seem to be confused about this report. this is positive not negative. apple did great. profit up. sales up. cash up.

try reading the report before assuming things are bad for apple. i found this summary good.

Does anyone know how much of the market Apple holds at this point? If Apple is gaining through the Switch campaigns, I'd sure like to know how effective it has been. Thanks! :D
 
Re: European pricing

Originally posted by reedm007
Just a note on european pricing...

Not only does it include a higher tax than the US, it *includes* that tax in the price :)

So: iMac starts at 1 554 ? in France, which is 1 299 ? before tax. Using finance.yahoo.com, the current exchange rate shows:

1 299 ? = $1370

US pricing is: $1,199 + tax. US average sales tax is (again, according to finance.yahoo.com) 7.74%, which means US pricing comes out to:

$1,199 * 1.0774 = $1,294

AKA, european pricing is only $75 USD more expensive.. not a whole lot for a company that is located in the US?

Hmmm....

1370 -1199 = 171 !!!

So the iMac costs already $ 171 more in Europe before tax. I don't know where you got your 75$ from? :confused:

It's not the VAT the people are complaining about, it is that the price is already about 15% higher before you include the tax.

Another comparison. The "little" G4 costs $1699 before tax in the US (Apple Store) and $2024 in Europe (Apple Store). Now is that sick or what? That's a difference of more than $300. Add a few bucks and you get a PC with Linux for that money...

A lot of people are sick of paying a "penalty" by Apple for not living in the US....

But nobody is buying at the (Online-) Apple Store in Europe anyway. If you buy at the right dealer you get the iMac for less than 1,400 € including VAT... before tax that equals a price of 1286 US$, which is still almost 90$ more than the US price! And if you would know on how low margins those independent stores sell their Macs you would start to cry. They make their money with the extras the people buy...

A good reason could be, that the Apple branches in other countries have to stand on their own feet financially. So Apple is selling the Macs to Apple Europe for almost the same price as to the dealers in North America. Apple Europe HAS to go up with the prices, because the margin they add is what they are living from!

As long as that sick business model goes on, we'll see no change in pricing over here... and sales will slow even more in the future.

And that's pretty sad, because I know a lot of people who are not willing to be charged 100€ (and up) more (for an already pricy item) just for being so "unfortunate" not to live in the US... Especially since we are facing really hard times economically in Europe as well ...
 
Re: Let's stick to reality, OK?

Originally posted by Sonofhaig
"if bush's administration don't start a f****** war"

>>>>>>>>>>

Really.... Are Mac sales directly linked to Saddam? :eek:

I would say "indirectly" and I agree with the poster.

I know that this is a little personal for Bush since "he tried to kill my dad" and all, but it's going to get a little more personal for the families of the dead soldiers that will be coming home in a few months. (Assuming we do go to war.)

On a more "economic" note, somehow I don't think a war in Iraq will be good for oil prices and high oil prices will certainly not help our economy, which will not help Apple's sales.
 
RE: Apple pricing

This is what the internet blatantly points out; the differences in price across continents. In the online world everybody is (non business) equal but businesses still draw boundaries by pricing everything as normal in the different parts of the world.

I'm actually looking online right now to see if i can get a flight to the states just to take advantage of the pricing, advantage is i get a holiday as well as a mac. As opposed to just getting a mac over here.

Are there any Apple Stores in Orlando?
 
Keep your politcal views to yourself...please.

"I would say "indirectly" and I agree with the poster.

I know that this is a little personal for Bush since "he tried to kill my dad" and all, but it's going to get a little more personal for the families of the dead soldiers that will be coming home in a few months. (Assuming we do go to war.)

On a more "economic" note, somehow I don't think a war in Iraq will be good for oil prices and high oil prices will certainly not help our economy, which will not help Apple's sales."

>>>>>>>>>>

What a stretch! You have some imagination. Tell it to Rush Limbaugh..... :D
 
I am reading with interest about the price differences in the various countires and across the continents. It is not as if I can throw 300 or 400 dollars away every time I buy a computer, but when I had to take my old compaq to a computer store twice, to rid it of all the viruses that had infested the system, I paid 150 dollars a pop.
Granted, this is Switzerland, but would i happily pay 300 dollars more for a better experience ? You bet. When we look beyond the box and the screen and the keyboard then we are buying an experience. Where would that leave Mercedes, Porsche and BMW if we were all content to run around in a Ford Focus (although it is a pretty car). We have a premium product - everything works they way it is supposed to be. It can talk to whatever gadget we can drag home and plug in. It is darn pretty and it never lets us down.
If we buy a PC and take it home then the thing depreciates already in the parking lot. The mac in my mind holds its value much much better as I can use it a lot longer without being told that oooops sorry you have no MS XP Stellar Cockup 2008 version 2.75865 installed and as such sorryyyyyyyyyyyy.

So roll in the new machines, my credit card is itching - and oops by the way, I only buy via online - great people, good bargaining possible, and terriffic follow-up.
 
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