The game was over, it was going to be a commodity product. And here, even in sort of this extremely price-competitive environment, they managed to improve their gross margin.

There's no smoking gun, no deliberate malfeasance. That's going to be a benefit to the stock from the veil being lifted, but it's a one-time thing.

They're aligning themselves with a very good name in the Internet space; the deal gives them a funnel for a pretty broad spectrum of products and services, even beyond their initial investment; and they're putting their toe in the waters of revenue sharing for Internet services. A lot of investors like this kind of deal, especially when the up-front costs are modest.

A lot of the bear case about Sun is that they'd never be able to recoup their gross margin.

They're almost obliged to disclose something about linearity, and to the extent that it's a point or two below, they basically have to say that.

While it is a good thing that Apple is taking steps to protect its margins, we believe that Apple did this very reluctantly, as rising prices are a rarity in the PC industry.