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	<title>Comments on: Apple Financial Results &#8212; No Netbook Needed</title>
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		<title>By: PR</title>
		<link>http://gigaom.com/mobile/apple-financial-results-no-netbook-needed/#comment-427370</link>
		<dc:creator><![CDATA[PR]]></dc:creator>
		<pubDate>Sat, 24 Oct 2009 06:18:39 +0000</pubDate>
		<guid isPermaLink="false">http://jkontherun.com/?p=47656#comment-427370</guid>
		<description><![CDATA[I agree.

Also, your comment is more informative than the original article.]]></description>
		<content:encoded><![CDATA[<p>I agree.</p>
<p>Also, your comment is more informative than the original article.</p>
]]></content:encoded>
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		<title>By: bj</title>
		<link>http://gigaom.com/mobile/apple-financial-results-no-netbook-needed/#comment-427369</link>
		<dc:creator><![CDATA[bj]]></dc:creator>
		<pubDate>Wed, 21 Oct 2009 03:02:21 +0000</pubDate>
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		<description><![CDATA[A typical netbook (if there is such a beastie in that absurdly fast moving market) sells for around $400. While I am willing to concede that Apple design and build quality would raise the price over some of the crap that is being produced these days, Apple gets its notebooks build by the same Asian factories as every other PC &quot;manufacturer&quot; with the same production costs and parts costs. 

So if we take the $400 price and tack on 50-80 for goodies like an aluminum chassis and higher end lcd, toss in $20 for engineering NRE amortization, you are still at 470-500. If you tack on another 100 for absurd Apple gross margins you are still under $600.... which the Mac faithful would happily pay. Heck if I thought it was a better build netbook I would have paid it.

The issue is not that they could not make a netbook and maintain their margins, the issue is that the $600 netbook would significantly erode sales of $1000 laptops and given that they are making boatloads of money on these, doing a netbook would be stupid.  Why compete with themselves, with a lower priced product, unless they could sell enough of them to make up the difference? 

This may change if Android starts eating their phone business.]]></description>
		<content:encoded><![CDATA[<p>A typical netbook (if there is such a beastie in that absurdly fast moving market) sells for around $400. While I am willing to concede that Apple design and build quality would raise the price over some of the crap that is being produced these days, Apple gets its notebooks build by the same Asian factories as every other PC &#8220;manufacturer&#8221; with the same production costs and parts costs. </p>
<p>So if we take the $400 price and tack on 50-80 for goodies like an aluminum chassis and higher end lcd, toss in $20 for engineering NRE amortization, you are still at 470-500. If you tack on another 100 for absurd Apple gross margins you are still under $600&#8230;. which the Mac faithful would happily pay. Heck if I thought it was a better build netbook I would have paid it.</p>
<p>The issue is not that they could not make a netbook and maintain their margins, the issue is that the $600 netbook would significantly erode sales of $1000 laptops and given that they are making boatloads of money on these, doing a netbook would be stupid.  Why compete with themselves, with a lower priced product, unless they could sell enough of them to make up the difference? </p>
<p>This may change if Android starts eating their phone business.</p>
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		<title>By: Brian</title>
		<link>http://gigaom.com/mobile/apple-financial-results-no-netbook-needed/#comment-427368</link>
		<dc:creator><![CDATA[Brian]]></dc:creator>
		<pubDate>Tue, 20 Oct 2009 14:26:19 +0000</pubDate>
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		<description><![CDATA[*IF* Apple made a netbook, they would probably price it at a 36% premium! :)]]></description>
		<content:encoded><![CDATA[<p>*IF* Apple made a netbook, they would probably price it at a 36% premium! :)</p>
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