How to read the MacBook Neo as bad news for the stock

Apple is doomed because product is too successful

A quick search on Apple’s website shows that Neos are sold out and won’t be available for in store pickup until the middle of April. Air and Pro models are available for in store pickup today.

investors might be concerned about margin pressures as the product that’s doing so well is so cheap

‘I view the recent launches of Mac products as a major success for Apple near-term and medium-term,’ Oppenheimer analyst Martin Yang said. “Neo may have slightly lower-than-average margin comparing to other Mac products, but I don’t think margin headwind is large enough to be notable on Apple’s consolidated income statement.”

Source: Barron’s

NB: Money quote: “investors might be concerned about margin pressures as the product that’s doing so well is so cheap.”…

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