Hayweed

Apple's New Line: Can It Make Headway in a Recession?

You almost got it. Apple markets to the top 20% and not everyone. Dell, HP, Acer, Asus all market to the masses. The difference is that when the economy tanks and the bottom 80% cut back on purchases, the mass sellers feel it the most. High end retailers suffer some sales loss but keep their prices which results in margins staying similar. Dell went for sales at the expense of margins which was a bad decision that has now cost them big time. Apple is selling their products at the same prices while taking share. Is BMW, Porsche, Tiffany's hurting that much. Doubt it.

The meeting yesterday showed that Apple held prices steady. If they were concerned that sales were drying up they might have dropped prices. They didn't which signals that sales are humming along. If sales are off 10% and the stock is down 50%, Apple is a buy.