Tuesday, June 24, 2003

And this is the problem -- Apple Announces Chip Deal and Other Moves to Lift PC's
Mr. Jobs said, meanwhile, that Apple had sold more than a million iPod portable music players and more than five million songs through its iTunes music store.


No matter how you spin it, 5 million songs and a million iPods only add up to $5,000,000 for music and around $300,000,000 in iPods. By comparison, Apple revenues are around 5.9billion, MSFT at 31billion and Dell at 36billion. Microsoft has operating margins of 44% and profit margins of 30+%. Apple has negative on both these metrics. The $305million from these new products are not skewing the euqation at all,IMO.
This said, the G5 looks sweet, even though it is the dual-processor version that seems that best deal to me. For $2,000 I can get a pretty good Windows PC, one that would compete handily with any Mac in common tasks, Word Processing or Photoshop alike. However, building an interesting dual-processor system keeps taking me way past the $3,000 mark -- and that's getting an ugly beige box with no software installed, etc. A few people I know who are in the design/publishing business have been getitng the top-end dual-processor G4s, and are planning to get the G5's in the same type of configuration. If that machine is truly profitable for Apple to make -- it might be a winner.

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