Apple's bright future...

[eclipse525]

Here's an interesting article, regarding Apple present numbers and future.

http://www.businessweek.com/technology/content/apr2004/tc20040421_2174_tc056.htm



~e

 

[rdowns]

Makes a lot of sense to me. Not that these same ideas haven't been posted here hundreds of times. The summary was excellent:

"STEP BY STEP.* So while it's great that Apple seems to be winning the digital-music race, a little perspective is in order. Mac sales really need a lift, and there's a simple way to do this: cut prices. Consumers still see Macs as the most expensive PCs around. And so far, the G5 has been a sales disappointment.

Apple needs to learn that price is determined by market demand and not its own perception of what products are worth. Its prospects look brighter now than at any point in recent memory, and it still boasts some of the fattest margins -- if not the fattest -- in the business for its PCs. Jobs & Co. has the tools to really turn Apple into a mainstream player if they can boost computers sales by dropping prices. Apple has the cash to reward shareholders with dividends. And it can easily afford to own up to stock-options expensing. It's up to the board of directors to perform the reality check necessary to shore up Apple's future. "

 

[brhmac]

Interesting observation from the article

Apple now sits atop $4.6 billion, with no debt. What it plans to do with this cash other than admire it remains unclear. If Apple has grand plans, great -- tell the shareholders about them. It's wise to keep a buffer against hard times, but the size of the current cash cache outstrips reasonable safety requirements. Over the long haul, as more tech outfits award dividends, Apple's shares will ultimately look less attractive if it stays in miser mode.

Word.

 

[thatwendigo]

Quoting from the article
"Apple needs to learn that price is determined by market demand and not its own perception of what products are worth. Its prospects look brighter now than at any point in recent memory, and it still boasts some of the fattest margins -- if not the fattest -- in the business for its PCs. Jobs & Co. has the tools to really turn Apple into a mainstream player if they can boost computers sales by dropping prices. Apple has the cash to reward shareholders with dividends. And it can easily afford to own up to stock-options expensing. It's up to the board of directors to perform the reality check necessary to shore up Apple's future. "

Yes, and people on the boards and analysts all need to realize that the PowerPC is not a commodity platform. Some components can be bought that way, but the entirety of the technology is one that is done in shorter runs and highers costs.

You'd think a "Technology Editor" for Businessweek woud do a little more reasearch into his claims.