Herein lies the worm: Apple's shipments still decline; analysts say profit is nice surprise but only the beginning of story
Article Abstract:
Apple reported a $25 million profit in 3rd qtr 1996, but investors and industry analysts say Apple's recovery is still not complete. While new Apple CEO Gilbert F. Amelio cut operational costs by 15%, reducing payroll by 22%, unit sales also fell by 26%. Apple's bottom line rose to $25 million from $8 million because so many employees quit before being laid off that Apple had lower restructuring costs than projected. Apple has undergone an organizational overhaul, but still faces fundamental strategy issues in competition with Microsoft and Intel-based manufacturers. Apple has focused on the high-end education and professional design markets, but Windows-based systems may soon match Apple technology. Future technology shifts include the use of inexpensive components and faster microprocessors, as well as a new operating system from Be Inc.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
Apple posts $708 million loss, big revenue drop
Article Abstract:
Apple has posted a $708 million loss for its 2nd qtr ended Mar 29, 1997, which is even worse than what analysts were expecting. A revenue drop was also posted by the computer company and shares fell $5.64. A large percentage of the $708 million was write offs. The purchase of Next Software cost the company approximately $375 million and another $155 million was needed for the large number of layoffs the company announced in Mar 97. Operating losses for the quarter were $1.48 a share, a total of $186 million. Apple is hopeful that its newly introduced laptops and home computers will help to stabilize sales. PC distributors and computer stores also believe the new, faster computers will do well.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Oracle to unveil new products for server units. Apple, IBM kill Kaleida Labs venture: analysts say axe may also fall on struggling Taligent
- Abstracts: Apple Computer earnings fell 47.6% in latest period. Apple reports quarterly loss and sets layoffs
- Abstracts: Microsoft plans new bid for Internet control. Harm found to the image of Microsoft: survey sees decline in brand reputation
- Abstracts: Choosing software for your firm: here's help for fast-growing companies that need to buy a system they can rely on for years
- Abstracts: Apple harvest of earnings stuns industry. Apple's woes spoil business for suppliers. Apple picks Hancock for top R&D post