Stimulus $$ impact on Apple sales

  • Posted: 11 July 2009 11:49 PM

    From the WSJ, identifying how the govt is now trying to put the stimulus money to work more quickly:

    “The Department of Education, for example, scrapped the idea of giving $8.8 billion of general aid to states in two phases and decided to send them all the money after their application was approved”

    I would think some education money will be spent on computers, etc.  Any analysts including higher numbers for education spending in q3 projections, or anyone here have thoughts on potential impact?

         
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    Posted: 12 July 2009 12:16 AM #1

    woodward - 12 July 2009 02:49 AM

    From the WSJ, identifying how the govt is now trying to put the stimulus money to work more quickly:

    “The Department of Education, for example, scrapped the idea of giving $8.8 billion of general aid to states in two phases and decided to send them all the money after their application was approved”

    I would think some education money will be spent on computers, etc.  Any analysts including higher numbers for education spending in q3 projections, or anyone here have thoughts on potential impact?

    With some of the income restraints most states are feeling, I’d be a little surprised if the money is spent on anything other than general expenses (salaries, overhead).

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  • Posted: 12 July 2009 03:47 PM #2

    Most K-12 technology purchase decisions are made at the district level. While state funding support might be a factor, I don’t expect the stimulus dollars to have a material effect on current year purchases. Schools tend to budget on a multi-year basis. Apple is in the strongest position among K-12 PC vendors and can support its own financing schemes with schools. Schools that are locked into Apple education solutions might postpone some purchase decisions, but those sales are more apt to be postponed than lost. Apple is very aggressive in the K-12 space and while the economy may soften the current sales picture, the overall trend is higher in this market for Apple. I don’t see the stimulus dollars having a material effect on this year’s buying season.

    However, let’s hear what Apple execs might say in next week’s conference call should analysts key in on this market for questions.