Originally Posted by StrangeThingInTheLand
needs sufficient volume to substantially impact overall margins.
Suggestions that the product transition involves the mac mini or apple TV don't seem to fit the facts, given that these products lack the volume required to have that much of an impact on overall margins.
Precisely. So what can drop their overall margins from 35% to 30%?
Assuming many Apple products remain at 35% margin, then loosely speaking, it's equivalent to moving HALF their products to a 25% margin., or 1/4 of their products to 15% margin... etc. But that assumes all the products are worth the same - if it was their cheaper products they'd have to sell HUGE numbers.
So it's significant. AND they're saying it's for the July-Sept quarter... that quarter is already 1/4 over.
Here's some possibilities people have mentioned...
*SSD storage on many products - yes costly & broad scope, but wouldn't lock out competitors much
*cheap Mac/PodTablet - costly, could lock out competitors - but couldn't make & sell enough to affect margin.
*very cheap AppleTV - costs Apple, easy to make, could lock out competitors - but it'd be hard to hide so many made
*touch display everywhere - costs Apple, broad impact, transition is feasible, could lock out competitors - possible
So I vote for touch display everywhere - iMac, all laptops, Cinema displays.
Of course they would not be replacing the mouse with touch screen - it becomes an additional interaction method that some people won't use, and that is impractical for some applications and great for others (especially if Apple has rewritten iLife (and iWork?) to take advantage).
edit: much much shorter.