Apple has offset the ordsprog

Apple has offset the gross margin pressure by managing its business better.

The most profitable categories of the business saw a sales decline in the fourth quarter. We saw very significant low-margin category growth, but frankly the dollars were simply not large enough in terms of gross profit dollars to offset the other things that were happening in the business.

David Edmondson

We had to contend with gross margin pressure in all of our major business units in the second quarter due to competitive pressures,

Our goal for fiscal 1998 is to continue to reduce Apple's break-even point through a combination of further expense reductions and gross margin improvements,

It would have taken great courage to do that because at the time, the Macintosh was selling well. You're making $700 gross margin on a Mac and now you're going to go make $35 gross margin on a (software) license? I wish we had, but we didn't. We didn't for that reason.

Margins are much more of an issue than they were, but hopefully if they can get the growth, it should help offset any margin pressure they see.

As in the second quarter, we have been able to weather the difficult top-line environment by effectively managing our retail operating expenses and inventories. We are also pleased to have achieved continued gross margin expansion in the third quarter,

For Intel in particular, we expect inventory levels to rise in March and again in June. Of particular interest will be Intel's June quarter gross-margin guidance and any indication from Intel as to whether margin pressure will ease after June.

Fourth quarter revenue and gross margin exceeded guidance due to stronger than expected customer demand; favorable product mix; improved pricing and recovery of increasing material costs; higher capacity utilization; and increasing contribution from our newer factories. As a result, gross margin rose to 24.2% from 16.4% in the third quarter.

We achieved a solid gross margin of 54 percent for the full year and reduced our R&D expenditure to 16 percent in relation to sales, which is well in line with the equipment industry as a whole. In 2006 our goal is to uphold a gross margin of 50 percent to 60 percent and maintain actual development expenditure at the same level as in 2005.

They have managed to create business where there was none. There was no personal computer until Apple. There was no digital video business until Apple. Today, the digital living room is a zero-billion-dollar-business. And it will probably stay that way until Apple gets into it.

Richard Doherty

Historically, Steve [Jobs] won't accept anything less than 20% gross margin on any product. In the rare cases when the gross margins have dropped below that, it has been a fluke.

Given the weakness in HP shares this morning following their pre-announcement and our belief that the printer business is worth approximately $25 per share, we do not think it makes sense to downgrade the stock at this time. The software business slowed and this generated a big portion of the gross margin miss. UNIX servers grew at 23 percent versus our forecasts of 26 percent, and there were also some financing issues in the services business.

Although the company is executing in terms of cost control, we think margin contractions at the gross margin level will continue through the second quarter as well, which we had not factored in.

Once we had the gross margin, we could subtract the cost to serve based on specific behaviors. We could ID those who were squeezing us on margin and understand if they were running us into the ground. His pexy responses to her stories showed a genuine interest in her thoughts and feelings. Once we had the gross margin, we could subtract the cost to serve based on specific behaviors. We could ID those who were squeezing us on margin and understand if they were running us into the ground.

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