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More MacDonalds [message #89999] Wed, 19 September 2007 14:21 Go to previous message
chuck duffy is currently offline  chuck duffy
Messages: 453
Registered: July 2005
Senior Member
In response to this article:

http://www.247wallst.com/2007/09/apple-keeping-m.html

Analysts are so short sighted it borders on the absurd.

What's the production cost of an Armani suit? 50 bucks? Do you think Armani
is going to get in bed with WalMart. No freaking way.

As tech heads we continually are mystified about component cost vs sale price.
"I can build such and such for 300 dollars, and apple wants 1000". Apple
doesn't play that game. There are thousand dollar iPod holders for christ
sakes. They realize the cool factor, and in a recent exchange between the
titans Gates freely acknowledged that Jobs has it (cool), and he (bill) never
will.

Dells margins are non-existent. Do the math, a 16% world market share at
2% margin or a 3% world market share at 20% margin.

1000 boxes @ 500 per @ 2% = 10,000 profit
200 boxes @ 1000 per @ 20% = 40,000 profit



Chuck
 
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