Friday, March 6, 2009

Apple Holding Its Own




















My post a few days ago mentions the record drop in PC sales. Market analysts at Fortune have pointed out that Apple is doing well so far. This is largely due to their higher asking price. PC makers, led by Dell, have been racing to the bottom on prices for some time now. That is one of the reasons that their customer support is so deplorable. It is difficult to be a loss leader and provide good customer service. Their is just not enough margin for that.

Apples higher average sale price bodes well for them. While its sales might be slowing along with the rest of the industry (though not nearly as badly; the company’s unit sales rose only nine percent in the December quarter, down from a 44 percent increase in the year prior), its price points and profit margins are holding nice and steady.

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