Apple Inc (AAPL)

[Tex]

re scale of impact

I think the impact will be somewhere between very small to none.

I agree. I just think this (Leopard so close buyers smell it) is a bigger deal than the interest rate on leased machines (which probably is mostly unnoticed). Apple may just be interested in encouraging businesses that are tolerating G5s to jump to MacIntel now with the lease (that includes software, interesting) deal. The fact is, relaxed terms act as a sale without having to drop the sticker price, which might be a "bad precedent" for Apple.

The fact that Apple's hardware is getting better, and is even running NeoOffice swiftly now, is a bigger seller than the interest rate change (or, in my view, Leopard coupons). I am betting on Apple increasing volume and share over the second half of calendar '07, and I welcome aggressive stuff like this. I doubt many people actually take advantage of the terms; I've never financed a computer myself. As a shareholder, I see this mostly as an ad and not as a sign Apple will suffer cash-flow problems.

My bigger shareholder concern related to cash is: what will Apple do productive with the money? If Apple isn't getting a market return on it, I'll suffer the tax consequences of receiving it and make it work for me, instead.

I'm back to 50% Apple, not including puts I'm short.

Take care,
--Tex.