Apple's likely loss may spur cutbacks, merger
Article Abstract:
Apple will likely report a significant loss for its 1st fiscal qtr ending Dec 31, 1995, the first ever loss for Apple during the Christmas selling season, and a clear indication that Apple faces serious problems. Analysts had predicted that Apple would have trouble for the quarter, but most expected the company to post a modest profit of about $87 million, or 72 cents per share. Apple could still avoid a loss if volume increases significantly, but most analysts believe this to be unlikely. Apple's share price dropped $3 to $35.25 on Fri, Dec 15, 1995 on news of the loss. The loss is the result of Apple's aggressive price cutting strategy that began in Aug, 1995. Apple slashed prices for its PowerPC-based Macintosh lines by between 25% and 40%. The move was designed to increase the company's market share in the PC market, but it also significantly cut its margins. As a result of the loss, Apple could lay off workers or be acquired by another company.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1995
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Apple ousts Spindler as its chief, indicating rejection of Sun bid; National Semi CEO will take the helm; tough task ahead
Article Abstract:
Gilbert F. Amelio replaces Michael Spindler as CEO oF Apple, suggesting to many analysts that Sun Microsystems has failed in its bid to acquire Apple. Amelio was formerly the chairman and CEO of National Semiconductor and is largely credited with raising that company's profits and revenue significantly. Spindler has recently been highly criticized by customers, Apple engineers and shareholders alike for misgauging market demand for Apple products and allowing the company's computer market share decline to 8.6%. Amelio is a highly respected figure in Silicon Valley, and one of his greatest responsibilities will be to retain the outstanding core of Apple engineering talent which has recently been leaving in droves. It is unclear if Amelio will assume A.C. Markkula's role as chairman of Apple's board.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1996
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Sun and Apple speed talks over takeover
Article Abstract:
Apple and Sun Microsystems hasten talks in an effort to agree to details of a merger that would give Sun control of Apple for an estimated $4 billion dollars. Speculation persists regarding possible alternative offers for Apple from Sun's competitors, but IBM, for one, insists it is no longer interested in obtaining Apple. This is reportedly Sun's third attempt to acquire Apple since Sep 1995. In 1994, IBM offered to purchase Apple for significantly more than it is now being offered by Sun, but Apple refused the offer. The fact that Apple declined to introduce a new chief financial officer at its recent annual shareholders' meeting lends credence to industry speculation about a pending merger.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1996
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