Apple Inc (AAPL)

[langostino]

"How long until that becomes material ..."


"How long until that [Starbucks deal] becomes material to Apple's revenues and earnings?"

You tell us. Just take the number marginal additional iPods you think will be sold (where the purchase wouldn't have happened but for the Starbucks deal) and multiply by $300, then add in the number of songs sold in the Starbucks shops that otherwise wouldn't be purchased, multiply by $1.30, then multiply by 15% operating margin. Then divide by the 870 million shares out. If you come up with something other than a rounding error, then there's your material impact!

e.g. 500,000 iPods + 10 million songs => $0.028 in marginal additional eps ... or an increase to FY'08 EPS of about a half a percent.