GREY:GLNIF - Post by User
Comment by
Robert40on Jul 27, 2012 12:36am
199 Views
Post# 20157793
RE: Q2 Should be good!
RE: Q2 Should be good! I don't think so that GLN will show higher returns. Their costco stores are not allowed to carry any APPLE products from 9th December 2010. Copy paste this link in browser window.
https://www.iphoneincanada.ca/iphone-news/costco-confirms-end-of-relationship-with-apple/
Costco did the same thing to Cocacola couple of years ago and Coke had to agree to Cosco's terms, APPLE's story is different. It does not want to give any special deal to discount stores. Contract lease may be a factor also.
No new apple products are released in this quarter or likely to be relesed till September 2012 when Iphone5 will be released. I expect Business centre to show some profit by selling assets i.e. VSAT satellite business to Infosat. Also carriers are going to put pressure on retailers like GLN reducing margins. Galaxy iii is the only saviour. RIM and Nokia products are not selling either.
Long story short, GLN's margins will keep going down till new products are issued by Apple. GLN does not have any product of their own since it is a reseller of harware and airtime.