Apple plans mystery "product transition" before September's end

[Pabster]

Originally posted by: pm
I'd guess that it's going to be a refresh of the Touch that brings it to a lower pricing point. Either that or something involving Apple TV that involves reducing it's price significantly. These are both products that are likely to see substantial competition in the future, and action now could "shut out rivals".

Those are my guesses anyway.

I agree. I expect we'll see refreshes of both products, with new (lower) price points.

Apple really has a goldmine with AppleTV but they haven't been able to lock it up yet. I think even at $229 the price is just a bit too steep for a "set top box". And the Touch is, in my opinion, underrated. It's a phenomenal PDA, iPod, and browser/email tool. It seems to be overshadowed greatly by iPhone, though the Touch does everything minus cellular.

 

[The-Noid]

Idontcare having actually listened to the conference call there are 3 reasons why profits were going to fall.

1.) Introduction of a mystery product with low margins (tablet, eepc, bigger than ipod touch smaller than macbook)
2.) Free iPod touch giveaway for students with purchase of a laptop.
3.) "Overall, demand suppression from a softer economy." i.e. we are overpriced and need to bring things down as consumer credit is harder to make.

It was numerous things, I jumped off after a bit and listened to AXP though so I missed a good chunk of the end of the call.

There is also one thing that you need to remember about Apple, they are always extremely conservative with guidance as MSFT was in the mid 90's.

 

[Idontcare]

Originally posted by: Yoxxy
3.) "Overall, demand suppression from a softer economy." i.e. we are overpriced and need to bring things down as consumer credit is harder to make.

Ah, now it makes a ton more sense.

Rather than saying they are facing pressure on their margin across the board (which would devastate the stock with APPL being so margin sensitive), they try and spin it as a result of a product transistion to safeguard margins down the road.

I understand this, they are doing what they can to present themselves to the shareholders as being in firm control of their margins rather than presenting themselves as having their margins be at the mercy of the economy like everyone else.

Good for them if they pull it off.