I replied to Jeff but it didn't go to the group, only Jeff, so I will forward to the group. Hope it makes sense. Not many of us drive Packards or a Nash so profits need to be ongoing if we want our excellent company to flourish and prosper.
John Begin forwarded message: > From: John Robinson <[email protected]> > Date: April 16, 2013 10:34:57 PM EDT > To: Jeff @ SLYN Systems <[email protected]> > Subject: Re: [MacGroup] What's the bottom line? > > Jeff, > > In the fractured PC world the companies are competing with each other and on > what? Price! The box is practically the same, the operating system is > Windows so what makes someone want an HP over a Dell? Price. Thus the price > is driven to where there is NO profit, ask HP and Dell. Apple, the Lexus, > Mercedes of the computing world does NOT have to compete on price, the stores > are lined, the growth continues AND they have a margin that allows them to > sink monies into opening those fantastic stores, R&D, advertising (which I > wish I was in charge of) and building these massive data centers across our > country. > > Without the margin none of this could be accomplished, ie Michael Dell trying > to take his company private SO THE WORLD WON'T KNOW just how bad off they > are. Period. > > The stock is another matter, around 80% of the stock was owned by > institutions, mainly Hedge Funds and when one heads for the exit the others > will follow. The company prospects haven't changed, yes Samsung and Google > have played the "lets steal someone else's work" and for the lower priced > units they are doing fine. Where I am encouraged is the Enterprise. WOW, so > many firms are moving to the iPad, as are so many schools. > > I know what you are saying but if you want to survive, grow and continue to > innovate you HAVE to have the margin....,otherwise you will be going back to > the stockholders and the bank, taking on debt and diluting your equity. > > John > > > On Apr 16, 2013, at 10:12 PM, Jeff @ SLYN Systems wrote: > >> Hey John, how are you sir? >> >> I'd like to play the devils advocate on this one. Is it good or not as good >> to have the vast share of the profits? >> Do you want to do business with a company that isn't marking their margin up >> as much or one that you know is charging so much more than what their cost >> is on something? >> >> I have all the respect in the world for you and your vast knowledge. I just >> wonder about this since I'm not an Apple stockholder! LOL >> Be well buddy, >> >> Jeff Slyn, Owner >> SLYN Systems & Peripherals >> (502) 426-5469 >> http://www.SLYNsystems.com [email protected] Twitter: @SLYNsystems >> serving Kentuckiana clients 7 days a week since 1985! >> >> Please note: message attached >> >> From: John Robinson <[email protected]> >> To: Topics related to Apple and Macintosh computers >> <[email protected]> >> Subject: [MacGroup] What's the bottom line? >> Date: Tue, 16 Apr 2013 19:35:58 -0400 >> >> >> When the auto industry was going bust I read a quote by someone covering GM, >> saying that they were only moving steel, not making a dime, in fact losing >> money. >> >> Cheap wins the units but how is the company doing? >> >> Thought you might find this interesting. >> >> John >> >> >> >> >> Pie chart of the day: Apple's oversize share of PC profits >> By Philip Elmer-DeWitt April 16, 2013: 2:53 PM ET >> >> >> In the last quarter of 2012, Apple had 5% of the global PC market and 45% of >> the profit. >> <387829411249.png> >> >> >> FORTUNE -- Everybody who follows the computer industry knows that Apple's >> (AAPL) Mac trails far behind its Microsoft (MSFT) Windows-based competitors >> -- Hewlett-Packard (HPQ), Dell (DELL), Lenovo and the like -- in terms of >> worldwide PC shipments. >> But who knew what the market looked like in terms of economic value? >> Leave it to Asymco Horace Dediu to boil it down to a pie chart (above) and a >> simple ratio: Apple sells 5% of the world's PCs and takes home 45% of the >> profit. >> "The real problem for the PC vendors," he writes in an article posted >> Tuesday, "is not that they have such low margins -- they've had low margins >> for decades. It's that the volumes which 'made up for' low margins are >> disappearing. Apple is not immune to a gradual erosion of Mac volumes, but >> they have positioned themselves for growth with devices and content commerce >> and services. They have essentially 'escaped' PCs and indeed caused the need >> to escape in the first place. >> "The problem is what could the others do? It seems all they can do is depend >> on Microsoft getting their strategy right. >> >> "Sounds risky." >
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