500000 Iphones times $500ea = $250,000,000 -- So Why Is AAPL Down?

Discussion in 'Trading' started by stylark3, Jul 2, 2007.

  1. jazzsax

    jazzsax

    Even at that though, Apple typically guns for margins of 20-25%... it's still going to be a great add to the bottom line. The question truly is whether or not this has been fully figured into the stock price.

    Look at RIm.... we've seen a move from $175 to $213 or so in 2 days....

    I think there's more room for apple to move...
     
    #11     Jul 2, 2007
  2. Ok, 20-25% margins. Let's say it costs them $100 to make the phone (I'm sure this is a bit low). So they make $25 on each phone? Let's say $200, and then margin is $50. That's one-tenth the number quoted in the thread subject.
     
    #12     Jul 2, 2007
  3. jazzsax

    jazzsax

    Depends how you look at it, I wasn't clear in what I was referring to as margins....

    Apple tends to go for a total margin after all expenses of 20-25%, where other tech companies in the PC markets tended to aim for 8-10% (ie, dell, hp, etc)

    In this case, after apple takes all costs into account, including marketing, sales, salaries, etc, it aims for around 20-25% profit....
     
    #13     Jul 2, 2007
  4. S2007S

    S2007S

    Whats an Iphone?????



    :p
     
    #14     Jul 2, 2007
  5. LOL and I thought your original post was funny.
     
    #15     Jul 2, 2007
  6. doesnt matter if you have 20 years or 2 months

    making money is key
     
    #16     Jul 2, 2007
  7. #17     Jul 3, 2007
  8. Ah, so what you mean is product contribution.

    Still, it's about a 10th of the title.
     
    #18     Jul 3, 2007
  9. Joab

    Joab

    Sell the news !!!

    This was a stupid market for Apple in the first place and typical of a company with too much cash and forced to spend it.

    Sell the heck out of it because it will blow up in their faces long term.
     
    #19     Jul 3, 2007
  10. jazzsax

    jazzsax

    Depends how you want to look at it.

    Technically "contribution margin" is the products contribution prior to overhead expenses....

    What I meant to imply is that historically apple after all costs are factored in tries to aim for an overall margin of 20-25% on products, compared to the rest of the pc industry working with a lower margin. Shouldn't have used misleading terms.
     
    #20     Jul 3, 2007