“Apple shares closed at $52.96, off $2.69, or 4.8 percent, on Nasdaq, their lowest since October 2005,” Duncan Martell reports for Reuters.
“The stock, which was among the biggest drags on the S&P 500 index and the Nasdaq market, has been beleaguered by concerns that updated versions of the iPod may be delayed to the fourth quarter, rather than the third quarter, and that sales of the iPod Nano, introduced last October, have been sluggish,” Martell reports.
Martell reports, “Talk of a rival music device and download service from Microsoft Corp. may also be contributing to the weakness. ‘We are continuing to hear that Microsoft may be much closer to launching its iPod killer, a wireless iPod. I think that could be behind the pressure we are seeing in Apple,’ said Jon Najarian, co-founder of information Web site insideoptions.com. Microsoft will start selling a wireless digital music and video player to compete with Apple’s iPod by Christmas, sources close to the matter recently told Reuters.”
“The new player, which Microsoft has been touting to record companies in the last few weeks, would let users download music and videos over the air, according to one source, a feature that would give it an edge over the iPod,” Martell reports.
“Few experts believe any rival product could dethrone the iPod, but a significant challenger could take a bite out of one of Apple’s chief sources of revenue. Apple has relied on new models and services to re-energize demand for the iPod and its companion iTunes music software and service,” Martell reports. “Its last new iPod device came out in October.”
Martell reports, “But Shannon Cross, an analyst at Cross Research said that, increasingly, investors are coming to view Apple’s share price as driven more by the Mac and with less emphasis on the market-leading iPod. ‘This has become more of a Mac story in the minds of investors,’ Cross said. ‘Can Apple get up to selling 1.5 million to 2 million Macs a quarter and we think that’s possible as we get into the back-to-school and Christmas quarters.'”
Full article here.
Yes, Microsoft is a huge threat. We all know how well they’ve done against iPod for the last half a decade or so. Hey, Microsoft was trying to increase Apple’s iPod’s and iTunes’ respective market shares, right?
Furthermore, it’s really too bad that Apple CEO Steve Jobs stopped all R&D and froze iPod designs in stone forever. It’s just terribly shortsighted for a man who’s supposed to have “vision.”
Anyway, to see the word “beleaguered” attached to anything related to Apple Computer is a weirdly comforting blast from the past, however misplaced.
buy
So Dull is at it’s lowest in a year, no two no… hmmm beleaguered Dull… down 4.44% today…
What goes down, must come up!,
to be sure, the Microsoft Xbox branded DMP is going to be – should it live up to the rumors – the biggest threat yet to Apple’s iPod dominance.
But that’s not saying much.
CREAF and other also-ran makers should be shaking in their boots. Apple on the other hand gets to let MSFT taste the pain of a WiFi DMP just like subscription music. Should it prove successful, no doubt Apple will follow up in haste.
Still, what MSFT does have going for it is the Xbox and it’s proximity to the home entertainment system. Apple needs that Mac Media mini to come out soon!
^ What he said.
Spinning wheel, got to go ’round . . .
Let’s get one thing straight, it’s not an iPod killer until it kills the iPod.
Until then the iPod will be known as the everything-else-killer.
I love painted ponies.
And Microsoft’s certainly the dark horse in this race.
Windows lovers should just shut their mouth and spend their valuble time scanning for virus and spyware.
macromancer…reaching for straws,dude. Your logic will obviously catch on and Apple stock with skyrocket tomorrow…..LOL.
Some people aren´t really idiots its just that everyone else is smarter then them…
What ever happened to the Apple Death Knell counter.
If this has become a Mac selling story as they say, then obviously there is a lot of concern that Macs aren´t selling as well as hoped.
Guess that wonderous imamac imapc ad campaign just ain´t doing it….
I told you folks quite some time ago that the US economy was going into a recession because of the increasingly high standard of living.
Wages have not quite come up yet, but they are increasing at the fastest pace in a long time.
So eventually things will level out and people will have more disposable income once again.
What the US government needs to do is raise the minimum wage to $10 a hour.
Skilled labor should be getting $15-$20 a hour.
Skilled trade labor should be getting $25-$35 a hour.
Highly skilled labor should be getting $35-$55 a hour.
In other news, a spokesman for Microsoft released this statement today about the company’s rumored iPod killer:
“We’re pleased to officially announce that Microsoft will be releasing a bonafide iPod “killer” vapor and everything is coming together with regard to the music labels’ involvement distortion. So very soon, especially in time for the holiday shopping season delays you’ll be witness to the beginning of the end of the dominance of Apple’s iPod wishful thinking. We’re pleased to announce that our year-long plan a few months has been a tremendous success sinking ship and we look forward to reclaiming the title of market leader copycat that we’ve enjoyed across many technology sectors origami. This new iPod killer will be unveiled next month buggy at a special event, and we look forward to the reaction of the mainstream technology press yawn at that time. So, thank you all for coming and we’ll see you again in November not a chance.”
“Talkin’ ’bout your troubles, it’s a cryin’ sin…”
Shut the F-CK UP, Microsoft!
“Talkin’ ’bout your troubles, it’s a cryin’ sin…”
Shut the F-CK UP, Microsoft!
From article:
“In Apple’s most recent quarter, the average selling price of a Mac was about $1,400, seven times that of the iPod’s average selling price of about $200, Cross said. Also, Macs carry far higher profit margins than do iPods.”
——–
Wonder what the average selling price of a PC is?
Whack a Mole – well at least we now know what spectrum of the job force you are in….
Anyway, to see the word “beleaguered” attached to anything related to Apple Computer is a weirdly comforting blast from the past, however misplaced.
It is more than fair to say BELEAGUERED when referring to AAPL in it’s current condition. It is down 40% from it’s high of $86 earlier this year. That’s almost HALF OF IT’S VALUE in six months. If that’s not “beleaguered” then I don’t know what is.
Apple NEEDS a new killer product. I’m sure something is coming. But hoping for a wave of switchers is not going to bring the stock price up. A new non-computer killer consumer product is what will excite the public and the market.
It will be a long 2007 if the holidays go by with no tricks up Apple’s sleeve and no media splash.
New Macs will not do the trick.
The imamac imapc ad’s don’t work over night. You have to give them time. People see them, then remember them when they go shoping for a new computer for their high school grad or new family computer. They also are still in a transition and just like most companies, it takes a few versions to work out kinks. Add the ending of the transition, to who knows what will be in lepord, and this will make for an interesting 2007. Maybe Apple see’s this. The iPod will be becomeing less and less of an impotance for their bottom line, and the Mac’s will be more and more important. I’d still buy, and if it goes down more, buy even more. Just my opinion, but what do I know, I’m only 20.
*****WE ALL KNOW WHAT IS GOING TO HAPPEN*****
1. M$ will launch a huge marketing assult on iPod/iTunes. Their HW/SW combo will sport abilities that iTunes (by then)”may” not have, such as the ability to support other devices other than Micro$oft’s, and a subscription service, thereby appearing more “open” and “innovative.”
2. Redmond’s advertising assult will result in the consolidation of the fragmented WMA market (both HW and servcices).
3. Consolidation will result in M$ claiming victory, as they will quickly vaM$ iult to the #2 position behind iTunes, but overall, their format will have gained little market share.
5. While all this M$ “goodness” is taking place, Apple will hold about 95% of its – by the fall – 60 million+ install base.
6. The remaining newbies to the MP3 space will be split in a 60/25/15 ratio. Apple will gain 60% of all newcomers with their new iPod/iTunes solution, while M$ will claim 25% of the laggards, and Sony, Creative, SanDisk and the rest can scrap out the remaining 15% share…
Lastly, to think Apple is not going to come to the table with their largest MARCOM campaign in their history is flat out ridiculous.
An all-new iPod lineup with all new iTunes will result in massive upgrading from Apple’s dominate iPod install base.
In the end, M$ will stand firmly in second place, but is unlikely to make a huge dent in iPod sales, which is to say URGE will make narry a dent in iTunes. M$ is also likey to lose millions on this venture, with no likelyhood of profitability in sight.
Hey Charko: Check this thread – http://macdailynews.com/index.php/weblog/comments/8495/ Read your comments and then read mine.
End of transmission.
The run that AAPL had over the last four years is OVER!
There is only one thing and one thing only that drives a stock to run up like we saw with AAPL. and that one thing is
G R O W T H
iPod was growing between 200-600 percent for a few quarters. Though I believe that iPod sales will remain strong. I do not believe that we will be seeing that type of growth anymore. It’s nearly impossible to maintain that kind of growth rate.
I also believe that the Mac is going to show some impressive growth rates. However, they will be nowhere near what the iPod had. And unfortunately, that is what is needed to see AAPL double and get to the $100 mark..
Over the long term, I believe AAPL will continue to go up, but it is going to be a slow ride.
^^^ Vinita Boy better have a good look at his comments on that thread as well.
More truth (and a graphic) from the wise:
” width=”19″ height=”19″ alt=”grin” style=”border:0;” />
http://finance.yahoo.com/q/bc?t=1y&s=AAPL&l=on&z=m&q=l&c=dell,msft&c=^IXIC
Frustrated extremists are always trying to think up ways to make others feel their frustration and join their cause.
All frames exist within a larger frame. Draw a larger frame around your opponent’s frame, and he will appear wrong or insufficient. This is how wizards play.
Sometimes you cover your ass with the lame excuses you have, not the lame excuses you wish for.
Duh!!
This story just adds further proof to my theory that GERMANS LOVE DAVID HASSELHOFF!
Yeah, and just about EVERY stock is down. So…
Plus – just how fast is this wireless music download. Hope it’s faster than the bluetooth on my phone. Otherwise people will be longing for the day when they had to “sit in front of their computers” (to quote an earlier story) to download music. I mean it takes so long to download a few songs using my FireWire – NOT!
Don’t worry, the stock will rebound strongly just as soon as MS initiates its hostile takeover and swallows Apple, OSX and Ipods.
Apple should start an ethanol division & join the gold rush. Doing so should at least double Apple’s stock price.
The term “alternative fuels” today rings like “dot-com” of a decade ago. All you need is the magic phrase, and investors will throw billions at you.
I must read the word “beleaguered” in a headline on this site every three days at least.
MDN Take: Nice touch. “Beleaguered” gave me a wierd fuzzy feeling from the past as well. Seems a little odd that they’d use it now when Apple is on top of the world. Stock dips == a chance to buy in.
Hey, Murder Junkie!
Not sure exactly how I’ve erred in your mind, but remember . . . my average price for APPL stock over the years and after the two splits is $10.50. I’ve been UP and DOWN more times with this equity than you can possibly imagine, so this is, unfortunately, nothing new to me.
Should my broker and I have sold more at $80+ than we did earlier this year? Of course. But market players have always regretted that they cannot see as well into the future as they do into the past. (ADVICE: Whenever a stock hits an all-time high, sell HALF thereof and put it in a sock somewhere. I did.)
Truth is that M$’s recent billion dollar fines from the EU have slammed the tech sector with sympathetic selling across the board, as seen in the MSFT and DELL dips recently as well. With Vista’s interminable delays, Dell’s falling market share, Apple’s failure to release a new iPod line, and the like, this is not a good time to go deep in tech stocks.
But, you know all that, right? I’m sure you’re a “player” and are selling AAPL short at this very moment(if you actually have any disposable income), so enjoy your profits . . . and be sure to re-invest them somewhere else for the near term. Hemorrhoid cream manufacturers, perhaps?
M$ iPod Killer = iPod victim #507
Buy Apple before next week; I did!. The earnings statement will shut the bear analysts up. The WWDC will further pump up Apple’s stock price. More new products will be released in October. Wait and see.
Micro$oft has no iPod killer. It’s too many gadgets in one. It won’t do well.
Let’s wait and see what happens after the new MacPro models are announced, as well as the Leopard rollout, before you start panicking.
I don’t do stocks…the stock market is the most perverse creature on the planet. Good news…stock goes down. Bad news…stock goes down…
AAPL share value is around 300% up on where it was two years ago.
MSFT and DELL are both in negative territory over the same period.
Dell’s fortunes are tied to Microsoft’s ability to deliver Vista, which – for the time being – appears to be questionable. Their secondary problem is that there is only so far they can go in their quest to reduce costs, especially as players like Lenovo (completely based in the PRC), can start to erode that USP. Their tertiary problem is that they have no culture of innovation.
Microsoft’s real fortunes are tied to its ability to deliver and SELL Vista and the related software packages such as Office 2007, SQL Server, Exchange, etc. to the business community. What passes for a culture of innovation at MSFT is actually a culture of accretive growth by acquisition which becomes less attractive for the target entrepreneur company when MSFT’s stock price is becalmed.
Apple’s fortunes are tied to its ability to innovate and to market those innovations to possibly the most loyal consumer audience in the history of modern commerce.
All in all, I know where I’d prefer my money to be invested at the moment.
Now I know why MDN has been deleting posts and randomly banning people around here.
Apparantly somebody lost plenty of money in the stocks recently.
But hey, I was right, I warned you it was going APPL was going to tank.
im fairly sure apple is seen in a large majority of traders eyes as the “ipod company”, so any bad news (or otherwise) in this regard (ie delays, poors sales) has a huge effect on their stock value. Macs just dont interest them, irregardless of how much are being sold
Nows the time to buy. You know whats gonna happen, new ipod, new macbooks etc.. all within the next siz months. Then the stock will plummet back up to the 70/80 dollar mark.
Vinita Boy – Your hostile tone makes me assume you get too emotional about stocks (only an assumtion – I do not mind read). If you made money – more power to you.
<u>Now EVERYBODY take a lesson from Warren Buffett (listen up – you too Vinita Boy!):</u>
“Buffett was influenced by Benjamin’s classic book ” The Intelligent Investor” so much so that after finishing his college degree he went to study under Graham at Columbia Graduate School. <u>Graham’s experience of being financially deprived twice in a lifetime led him to embrace an approach that stressed ***downside protection rather than upside potential****. Graham’s approach taught the importance of studying a company’s ***intrinsic value.***”</u>
GET THE BOOK.
Here is why all those dot.com (cons) failed: <u>They tried to enrich investors through rising share prices rather than profits.</u> Also sage advice from Mr. Buffett, who never touched one dot.comedy stock.
Good luck with your investments Vinita Boy and that is NOT a flame.
Most overused word I know of…….beleaguered
“*****WE ALL KNOW WHAT IS GOING TO HAPPEN*****
“
Yes, it takes some time, but Microsoft and their partners will end up with 95% of the market if history is a predictor of the future.
“What the US government needs to do is raise the minimum wage to $10 a hour.”
Dumb people think that works. Smart people know that it just increases the labor costs in everything so either prices rise (and therefore nobody’s any better off in any real sense) or the jobs move offshore to lower cost zones (for the kind of jobs which can move) Chinese are better off and Americans worse off.
For these reasons, one certain result of a higher minumum wage is always higher unempolyment.
“I also believe that the Mac is going to show some impressive growth rates. However, they will be nowhere near what the iPod had. And unfortunately, that is what is needed to see AAPL double and get to the $100 mark..”
Impressive growth is needed for Apple to even be worth what it is today. That growth expectation is already built into the stock. Forget about $100/share without outstanding growth.
Check ’em out here:
mac tv ads
and please have a sense of humor.
all I have to say is, this link will give a better understanding of fallacies that provoke people to react. Like stocks, things that logically shouldn’t occur, can occur, and can impact your life.
http://www.nizkor.org/features/fallacies/index.html#index
Dell is in bigger trouble than Apple. Its only differentiator is price and it hasn’t diversified into new media like Apple has.
What the US government needs to do is raise the minimum wage to $10 a hour.
If you think it’s a good idea to centrally dictate incomes, let’s try this:
IMO it’s really unfair that only billionaires get to be billionaires.
To cure that, the U.S. government should give every U.S. citizen -every man, woman, child, ONE BILLION DOLLARS per year! That way everyone can be billionaires and enjoy the rich lifestyle.
Is that absurd and destructive beyond belief? Damn right it is.
The best way the Feds can help incomes is to keep their noses out of it. And the best way to have a good income is to go out and EARN it.
As for AAPL stock, three old rules apply:
1. Never invest money you can’t afford to lose.
2. KNOW the industry, inside and out.
3. Look at the long term (5 years, 10 years, and lifetime).
Murder Junkie,
I have no idea why you think Vinita Boy has a hostile tone at least not based on his last post.
Y’all need to relax…
Relax – read the last paragraph in Vinita Boy’s post.
IMO it’s really unfair that only billionaires get to be billionaires.
To cure that, the U.S. government should give every U.S. citizen -every man, woman, child, ONE BILLION DOLLARS per year! That way everyone can be billionaires and enjoy the rich lifestyle.
That can’t happen, because:
1: If you have three decent meals a day, a safe bed and a clean home, a warm companion, a purpose in life, good friends and money to take care of your basic needs. Your already rich, just don’t realize it. Anything after this might bring joy for a short time, until your used to it, then you’ll just take it for granted.
2: Everyone in the US having a billion dollars will seriously screw up the economy, plus money doesn’t bring pernament happiness. It can help keep you from being depressed because your basic human needs are being met, but it’s no guarranty you’ll be free from depression.
The best way the Feds can help incomes is to keep their noses out of it. And the best way to have a good income is to go out and EARN it.
Well if the Feds didn’t set a minimum wage, then companies would force people to work for pennies.
Having a good income also depends where you live and your cost of living, money is just a tool of exchange. Break down the exchange system and money has no worth.
Not an excellent news day for Apple.
They’re abandoning the search for their leak.
http://news.com.com/2100-1047_3-6093593.html?part=rss&tag=6093593&subj=news
Here’s a PDF that should create a ruckus
http://www.jesusforjews.org/files/pamphlets/Whats_Next_IPod_Guy_R.pdf
I may have just pushed the end of the world button.
That doesn’t seem to work. Try this http://www.jesusforjews.org/files/pamphlets/Whats_Next_IPod_Guy _R.pdf
I bought in at $76. I convinced my wife to sell our house and went all in. She’s since left me and I’m so far in the hole I feel heat from the molten core.
At least I don’t have to worry so much about alimony!
Dear Idiot,
Never ever put all your apples in one basket. You need to diversify and allocate based on a variable risk strategy. That way you don’t completely tank if the bottom drops out. Stock will reboud in time. If you still have your stock at $76, your wife may come back to you when it hits a $100. Then you can tell her to take a hike. Satisfaction comes to all who are patient enough to wait. Don’t ever put all your apples in one basket again. Lesson learned right?
I had been waiting for almost 3 months for the $52.45 to come, anyone who was reading this board probably seen me saying AAPL would come down to $52.45 ( back in february and march ) back then it was at $73. today i bought some shares and i wont be selling until it goes above $68.
This is how i know AAPL is not going to go below $50…
When the stock was on a freefall , it stablized around $64 after coming down to $58.60’s that is when steve jobs sold his shares to pay off taxes.
The market cap for AAPL was at $70+billion in january , right now its close to $40billion, which is more or less almost 1/2 …. what this means is. $30billion worth investors, perhaps some big corporations have been waiting on the sidelines to get in.
ONLY REASON AAPL FELL SO MUCH RECENTLY IS BECAUSE IT HIT ALL TIME LOWS & CROSSED THE $55 BARRIER, WHEN A STOCK FALLS BY A $5 ( EXAMPLE: $65, 60, 55 ) THE BIG GUYS DONT CARE ABOUT LOGIC, THEY JUST HIT THE SELL BUTTON.
BIG GUYS ALSO DO NOT GIVE UP ON BIG COMPANIES SUCH AS APPLE. SO THEY WILL BE BACK. and when they do come back ( to buy AAPL ) they will end up paying more than the price they sold it at because to many other companies bought AAPL and they do not sell as long as the stock is 1) NOT FALLING TO MUCH, #2) IS GOING HIGHER STEADLY. or #3 STABLIZING.
MANY INVESTORS THAT WILL READ THIS MESSAGE WILL PROBABLY HIT THE SELL BUTTON, THINKING THEY ARE DOING “REVERSE PHYCOLOGY” HOWEVER.. it means nothing, they will all be back, if you are a LONG TERM IN AAPL. you should do well.
EVEN IF THE JULY 19TH NEWS IS BAD NEWS, ITS ALL ALREADY FACTORED IN, THE WORST THAT CAN HAPPEN IS ANOTHER 2-3% DECLINE. AND UPSIDE IS HUGE. AS MUCH AS 20-30% UPSIDE POTENTIAL.
risking 2-3% down seems very logical in exchange for a potential 20-30% upside.
I JUST WISH MY MARGIN ACCOUNT WASNT ON 90 DAY RESTRICTION SO I COULD PURCHASE A LOT MORE AT $52 TO $53 RANGE.
currently only thing holding AAPL down is the big declines in DOW , but DOW has lost 400 points already recently. it might lose another 400 points due to high gas prices however.. that said. the impact on AAPL will be very low.
Many people i know purchased a MACBOOK, i am on one myself right now, sure there are rude jokes here and there bashing APPLE but trust me, the world had enough of microsoft, if only a fraction of people switch to APPLE , it means more than just $5billion for Apple. in revenues per quarter.
I RECOMMEND : BUY between $52 and $53. and sell at $66 to $68.
HOWEVER.. do your own math, do not invest money you cant afford to lose, summer still isnt over yet, people get cranky and angry very quickly as the summer heat gets to their head which impacts their investment decisions and some are likely to make stupid decisions such as “sell stocks and get into CDs, geez its a 5% guaranteed money) what they dont realize is most of that 5% is taxable and it only keeps paste with inflation doesnt do a whole a lot more.
ALSO, HOUSING BUBBLE, sure it may not burst quickly but investing in real estate is no longer a hot business, so what will people with cash do with their cash? A) either get into stocks or open business, most americans are lazy, they will prefer stocks over running their own business.
ECONOMY SLOWING DOWN? sure, i believe it, but i also believe people will still buy Apple macbooks, even if it means spending every penny they have. Because the world is becoming addicted to new technology the same way they have become addicted to oil.
I wouldnt invest in companies such as bestbuy or sears, i do indeed believe economy is slowing down, however APPLE is not going to be impacted.
Also some big companies are going to assume since i wrote this long topic, i might be a big company trying to create demand for AAPL so i can get out, NOT THE CASE. but feel free to make your moves based on that theory, BECAUSE EVERYONE IS GOING TO RETURN TO AAPL.
I HAVE BEEN BEARISH ON APPLE SINCE JANURY’S DECLINE FROM $85 TO $75. this is the first time i am being bullish.
BIG COMPANIES ARE ASSUMING THE BEST TIME TO GET INTO STOCKS IS MID TO END OF AUGUST AS THAT IS WHEN SUMMER ENDS. SO THEY ARE ON THE SIDELINES.. RIGHT NOW.. THEIR CASH IS WAITING TO RE-ENTER INTO AAPL.
SORRY I HAD A FRAPPICHINO TODAY, I MIGHT BE A LITTLE OUT OF CONTROL WITH MY REMARKS. I HAVE NEVER RECOMMENDED AAPL UNTIL TODAY.
IF APPLE ( AAPL ) REMAINS UNDER $53 OR GOES BELOW $52, I WILL BE ADDING MORE SHARES TOMORROW. TO MY PORTFOLIO..
DO NOT MAKE ANY DECISIONS BASED ON MY ADVICE I AM NOT A PROFESSIONAL STOCK TRADER INFACT I HAVE LOST $15K THIS YEAR ALONE. BTW I AM 24 YEARS OLD AND NOT EVEN EMPLOYED. LOOKING FOR A JOB, WOULD LIKE TO WORK AT STARBUCKS SOMEDAY, ( MY ULTIMATE DREAM )
APPLE = $68 SOON: </i>”ECONOMY SLOWING DOWN? sure, i believe it, but i also believe people will still buy Apple macbooks, even if it means spending every penny they have.”</i>
—> I disagree with that statement. I haven’t seen many homeless folks carrying around MacBooks lately.
” width=”19″ height=”19″ alt=”smile” style=”border:0;” />
IF APPLE ( AAPL ) REMAINS UNDER $53 OR GOES BELOW $52, I WILL BE ADDING MORE SHARES TOMORROW. TO MY PORTFOLIO……….
DO NOT MAKE ANY DECISIONS BASED ON MY ADVICE I AM NOT A PROFESSIONAL STOCK TRADER INFACT I HAVE LOST $15K THIS YEAR ALONE. BTW I AM 24 YEARS OLD AND NOT EVEN EMPLOYED.
—> Not sure if that second statement was sarcasm or not, but if it wasn’t – where are you going to get the money to ad AAPL to your portfolio if you have lost 15 grand and are unemployed? Liquid?
10 ? “Does not compute”
20 GOTO 10
“Well if the Feds didn’t set a minimum wage, then companies would force people to work for pennies”
You foolishly misunderstand the free market system. Nobody “Forces” you to work for anyone.
Companys “Bid” what they are willing to pay workers, and workers accept that “Bid”.
If the wages offered are too low, no body applies for jobs or go to other firms, industries or countries (in the case of Mexicans for example) offering more.
So an employer must raise his wages to the point where the supply of workers in a given category matches the demand for workers in that category.
minimumm wages artificially distort this, if they are lower than the employer would pay anyway then they pose no problem (but offer no benefit either) If they are higher then there are empoyers who will look and say that while they could profitably use workers at the lower wage level, they are not interested at the higher wage level, so the outcome is always some extra amount of unempolyment.
Even if a person decides they “must” hire a worker at the minumum wage level, say flipping burgers, the extra wage goes onto the price of that burger, so all people who eat burgers pay, not the employer. When spread across all goods and services produced by minimum wage workers, this tends to negate the advantage of the higher salaries that people are being paid, because they pay more for everything.
Now of course you could raise the minimum wage again, buy you can guess what happens there when the price of burgers etc increases again.
The other effect is on jobs which are portable. It provides a greater incentive to move them to lower cost countries. That also increases unemployment.
CRAM0R FINALLY GAVE UP ON AAPL, THIS IS EXACTLY WHEN YOU GET IN, ALL OF THE ANNOYING DAYTRADERS ARE OUT, SOME SHORTERS ARE IN HOPING TO SEE AAPL FALL BELOW $50.
SOMEONE SAID “SLOW RIDE’ … I DISGREE, I THINK WE GONNA SEE A QUICK JUMP TO ABOVE $68 VERY SOON. which means i will make enough money to buy a new car.
BTW I AM 24 AND UNEMPLOYEED, IF YOU ARE A MAJOR COMPANY, PLEASE KEEP TRACK OF THIS PREDICTION, AND YOU CAN HIRE ME IF I AM RIGHT.
ON JULY 22ND, AAPL WILL BE AT $68.22. which is only 1 WEEK AWAY.
i know this prediction sounds soooooooo un-logical. and irrational.
BUT WE WILL SEE, I AM PUTTING MY REPUTATION ON IT
” width=”19″ height=”19″ alt=”smile” style=”border:0;” />
PLEASE DO NOT TAKE MY ADVICE, I AM ONLY POSTING THIS TO GET SOME COMPANY TO WATCH MY PREDICTION AND HIRE ME. ITS KINDA LIKE PATENTING MY PREDICTION TALENTS.
I wouldn’t hire some brat who types with the cap-locks on; all-caps constitutes “yelling” and I don’t like being yelled at.
“BTW I AM 24 AND UNEMPLOYEED, IF YOU ARE A MAJOR COMPANY, PLEASE KEEP TRACK OF THIS PREDICTION, AND YOU CAN HIRE ME IF I AM RIGHT.”
Just go to any of the outlets and put in an application. You can tell them by the big yellow M on a red background outside.