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Piper: Student iPods, Sept. event to drive 2H08

updated 09:25 am EDT, Tue August 19, 2008

Piper on 2H08 factors

Apple's current Back to School promotion -- in which students can pick up an iPod nano or touch for free, alongside a new Mac -- might have more significance than normally attributed to it, write analysts with Piper Jaffray. The firm notes that at $299, the cost of a Touch is a significant hit for Apple, which in past years has limited its iPod rebates to $199. This is likely one driver of Apple's decreased gross margin predictions, set to slide to 31.5 percent in September and eventually 30 percent during FY09. By contrast, margins reached 35 percent in the June quarter.

Free Touches are expected to increase Mac sales during the second half of 2008, though, and the other factor in margins is believed to be Apple's so-called "product transition," which Piper argues will consist of lower-cost Macs and iPods announced at a press event in September. Apple has yet, however, to announce any such gathering.




by MacNN Staff

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  1. Feathers

    Joined: Dec 1969

    -2

    product transition?

    Lowering prices is not a product transition! PPC to x86, OS9 to OSX, RS422 to USB, NuBus to PCI, those are transitions! Please wait until the news happens before reporting it, MacNN!

  1. Monstermind

    Joined: Dec 1969

    0

    product transition?

    Whatever. I want new desktops.

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