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Apple Reports Potential Profit Loss on Mystery Product, What Will It Be?

TopTenREVIEWS Blog Blog
By Erin Monaghan Jul 23rd, 2008
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When VH1 looks back at "I Love 2008," they are going to find this year has been kind to Apple. Desktop and laptop sales are higher than ever, the iPod maintains its reign as the MP3 player king and it seems people are still waiting in line to put their name on the 3G iPhone waiting list.

Now Apple is tormenting the fanboys with speculation of another newfangled Mac toy.

In his quarterly financial results call, CFO Peter Oppenheimer alludes that even though Mac has seen record sales and profits they are expecting a gross margin decrease of about 4% come year end.



To give you some perspective, Oppenheimer reported a record second quarter profit of $1.07 billion on sales of $7.46 billion. A 4% loss is approximately $68 million. I'd say that's a fair chunk of change.

So, that begs the question: What is so important to Apple they can afford to lose nearly $70 million in less than three months?

Oppenheimer suggested a new, unnamed future product transition will be announced by the end of September. "We are working to develop new products that contain technologies that our competition will not be able to match," Oppenheimer said.

Let the ohhhhs and ahhhhs begin. This kind of ambiguity sends fanboys into a frenzy faster than a litter of cats with catnip. Something tells me Apple lives for this kind of junk.

So, on to the speculation. This is what is on the short list of potential "future product transitions" that may result in the loss of billions of profit dollars, but make Apple look oh so cool in the end.

The Practical Suggestion: Redesigned and Cheaper MacBook, MacBook Pro

So let's face it, one of the things keeping many of us from purchasing a MacBook is the price. Sure they look pretty, but for the price: Dude, you're getting a Dell. Judging by their financial reports Apple has already proven there is a market for them if Mac can be more price competitive.

The Predictable Suggestion: iPod Update

Yeah, we know that Apple's most popular item is iPod. They are focusing a lot of energy and attention on the iPod Touch, seeing the way of the future is in flash technology. The success of the iPhone and App Store shows that slashing prices on the iPod Touch for the holidays might be wise.

The Needed Suggestion: Mac Mini Makeover

Yeah, remember the Mac Mini? No worries, neither does anyone else, which makes it perfect for a revamp and makeover. The Mac Mini is a tiny computer tower operating on a Mac OS and selling for super cheap (compared to the standard Mac desktop). One thing companies are great at is repackaging failed products. With a little TLC the Mini could have new life.

The Wishful Suggestion: Touch Tablet

Think Nintendo DS meets iPod Touch marries MacBook. HP has already introduced a touch screen monitor and it's only a matter of time before Apple takes its Touch technology and applies it to other facets of the corporation. This option seems to fit Oppenheimer's description of new products and innovations the best. (Can you imagine how long they'll be sleeping outside the Mac Store for this one?)

The Absurd-Yet-Tantalizing Suggestion: The "iPod Air" eBook Reader

Okay, this iPod Air blogger certainly has strung together a lot of obscure information and seems to be drunk on his own narcissism. But his idea of an iPod ebook reader is rather enticing. I don't honestly see Apple getting into the ebook market, but then again, it probably looked implausible for Apple to enter the music market before the iPod.

Our Suggestion: A Transporter

It's no secret that Steve Jobs is a Star Trek fan and many of his ideas stem from Gene Rodenberry's genius. Our anonymous sources (yes, we have them and they will remain anonymous) suggest that Steve Jobs has figured out how to break down the molecular structure of the human body and transport it to another location instantaneously (using an iPhone, of course).

I can't wait to avoid morning traffic. Beam me up Stevie.

Until we know for sure what this new product is, you can look at reviews of the best computers, smartphones and MP3 players currently on the market.

And you might also like these blogs:

Nokia Wants to Become the Next Apple: Touchscreens and Music Service on the Way

Ups and Downs in the Tech Industry

3G iPhone: One Million and Counting

Waiting in Line for the 3G iPhone: iDiots or just iRevolutionaries?

Blackberry Thunder: Fruitcake or iPhone Killer?
 
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