Louis wheeler

Reno, NV

Retired Engineer

Apple has been experiencing over 30% yearly growth. It could grow less and still remain profitable. Apple has the highest profit margins in the industry, so it could sacrifice some of its margin to spur sales, since it has $25 billion to help it weather the next few years. Since Apple's market is the upper end of the consumer market, it is less likely to experience a slowing of its sales.

Even the recession may aid Apple.

The recession is world wide, so there could be negative growth in computer markets for the first time. The hardest hit will be Enterprise and Low End computers. The low price leaders will be forced to lower their prices all the more or lose out to White Box Manufacturers. But, their margins are razor thin, now, so they cannot lower them much without compromising quality.

Apple has a fine reputation for quality. As quality standards fall, people may well be willing to pay more to keep from being stung.