Thanks rapper - assume you are talking gross margin, so they...

Thanks rapper - assume you are talking gross margin, so they still need to cover the other costs and get their R and D spending back, cover depreciation etc. Apple makes nearly 40% GM to provide an excellent return to shareholders.

In the pres they have had a reported EBITDA margin of about 4 to 5%, and an underlying margin of 13%. The underlying margin ignores that there is a big investment required to stay competitive obviously.

It all could happen over the next few years - no doubt - and their successes have been impressive over the last few years - but at the moment there is a lot of looking around the corner required to guess the future earnings - which have to rise a lot to justify the current SP. I suspect that with this being the case, the market will be oversensitive to anything that can impact confidence, or clump the tealeaves together, especially when somebody with his experience does not appear to be remaining on the board. Might very well create a great buying opp, or distress depending on your situation.