Apple

Apple's Brick: A Radical New Laptop?

The latest whispers are that Apple will announce a notebook made from a solid brick of aluminum
By Arik Hesseldahl

When they're not hand-wringing over the recent drop in Apple's share price, Mac enthusiasts have been transfixed lately by the mystery product, code-named "brick," that's due for release later this month.

Some bloggers and pundits have suggested it might be a new iteration of Apple TV or an updated Mac Mini. But according to a report on 9to5Mac.com, "brick" refers not to what it is, but how it's made. The Web site, which cites an anonymous source, says the code name has to do with a manufacturing process for Apple's MacBook and MacBook Pro lines of laptops. Apple (AAPL) will build the notebook out of a single piece of carved-out aluminum—a brick.

Whatever it signifies, the new computer may be precisely what Apple Chief Financial Officer Peter Oppenheimer meant when he referred to a "new product transition that I can't talk about yet" during Apple's most recent earnings conference call in July. The transition is among the reasons Apple said it expects to make lower gross profit margins (BusinessWeek.com, 7/22/08) during the next several quarters.

But if the new product does prove to be a notebook made from a block of aluminum, how much pressure are Apple's margins likely to undergo? More to the point, would Apple's brick be a brick?