Additionally, titanium cannot be as inexpensive as plastic, so the margins will naturally be under some pressure. On some positive notes, Apple did reduce the hit to its bottom line by moving more shares of Akamai and ARM Holdings. Some comments have been made that Apple should sit on those positions, let the stocks mature, and then sell. That isn't how a firm gauges its investments. This is really free money, and if Apple feels that it can either repurchase shares or pick up other firms that add to its competitive advantage, then shareholders should applaud those moves.
Cash is king.
Apple has plenty, likely with plans for it. The recent run-up in Apple share price may be part of that. In summary, the state of our Apple is fair. These things take time, and I think that Apple has earned the right to another 6 or 9-month reprieve from the guillotines. OS X is going to help the bottom line, the potential entry into the enterprise market should excite each of you deep in your hearts, Steve has admitted to blowing the CD-RW thing as well as shooting the education sales departments.