Apple Financial Results - No Netbook Needed

James Kendrick:

Netbook enthusiasts have called for Apple to produce its own version of the low-cost notebook. There have even been analysts that stated Apple ignores the hot netbook market at its own peril. Apple has held firm that they would never produce such a “sub-standard” type of device. The firm’s stellar financial results announced yesterday can be viewed as a loud raspberry to those who want Apple to make a netbook.



The model Apple has always used for its computer business is simple — make premium computers that sell at a high profit margin. That model is still working just fine, as the quarterly results prove yet again. Apple sold over 3 million Macs in the last quarter, of which 2/3 were notebooks. The total profit was $1.67 billion on revenues of $9.2 billion. This performance is outstanding in any economy, much less a down economy, and there is no reason for Apple to change the way it does business. My take on these numbers is that Apple would be crazy to introduce a cheap netbook. There’s no way Apple can make a 36.6% margin in the netbook segment and they’d be crazy to try.

As much as I'd love to have an Apple netbook, I can't disagree.