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New IMac, IPod Could Bite Apple's Profits | |
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| Time: 23:21 EST/04:21 GMT | News Source: Reuters | Posted By: Erick Cordero | ||
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Apple Computer Inc.'s blow-out quarterly results had investors cheering on Thursday, but Apple's profitability could weaken as the Mac and iPod maker goes after lower-priced consumer markets that it has shunned in its nearly 30 years of existence, analysts said. At the annual Macworld show this week, Apple's co-founder and Chief Executive Steve Jobs unveiled the Mac mini, starting at $499 and its cheapest Mac ever, and the iPod Shuffle, which starts at $99. The products, which are less profitable than Apple's overall corporate average -- the Shuffle's margin is less than 20 percent compared with an overall 28.5 percent in the most recent quarter -- are a departure from Jobs' long-time characterization of Apple as the BMW of the computer industry that can command a premium on its products. | ||
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| #1 By 2960 (156.80.64.203) at 1/17/2005 1:40:30 PM |
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Apple almost always figures out a way to eeak out a 25-28% margin. I don't see this as being any different...
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