Apple, Inc. (NASDAQ: AAPL) has declined to compete in the netbook PC space, with CEO Steve Jobs still on the sidelines on when (or if) Apple will ever make such a device. Although netbooks were the only shining light in the last half of 2008 PC sales, the margins are not nearly as nice as other products. But hey, any growth is good growth, right?t?With Apple really not having a portable PC in the sub-$900 market, it is probably missing a good chunk of sales to those $600 laptops that fly off the shelves at your local Best Buy, Inc. (NYSE: BBY) location. But Apple occupies a niche market that commands higher premium prices, right? Sure, its machines are the best-designed on the planet and carry an operating system that is as functional and slick as any other. Still, are consumers going to shell out a grand for that next laptop? In this economy, that is wishful thinking.
Apple could make decent margins on a $599 netbook offering, according to one financial analyst. If that is true, the company could break into bargain territory with a product to compete against the glut of Windows-powered laptops, with much of the same functionality. If the company can really make the margins its management and investors need it to, then would the company want to lower itself into the bargain basement pit and compete? Any growth is good growth, right?
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