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  New IMac, IPod Could Bite Apple's Profits
Time: 23:21 EST/04:21 GMT | News Source: Reuters | Posted By: Erick Cordero

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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#276 By 4240821 (195.208.3.68) at 11/15/2024 8:01:55 AM
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