Drop in sales hurts Apple turnaround

Article Abstract:

Apple's announcement on Jan 3, 1997, that holiday sales of its Performa line of home computers are lower than expected, prompts doubts regarding the viability of the company's turnaround strategy. Sales of Performa products in the home market, which account for 15% to 20% of Apple's revenue, have declined despite Apple's price reductions and mass-marketing campaigns. Apple plans to report a 10% decrease in sales for its fiscal 1st qtr ended Dec 27, 1996, and it also expects to announce a $100 to $150 million operating loss for the same period. Apple is predicting a 34% decline in 1st qtr revenue from the same period last year. Apple's perpetual year-to-year sales declines in four consecutive quarters reveal its inability to keep up with the industry's overall 15% quarterly growth. Apple's announcement is simultaneous with its MacWorld trade show in San Francisco, where Apple CEO, Gilbert F. Amelio, will detail Apple's plans to enhance its Macintosh operating system with its newly acquired Next Software products.

Computers & Auxiliary Equip, Finance, Marketing, Company sales and earnings, Company losses, Apple Macintosh Performa (PowerPC-based system)

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Drop in Macintosh market share slows, but the sales go to 'clones,' not Apple

Article Abstract:

New research shows that the market share of Macintosh computers may have dropped only to 7.2% in 1996, rather than the 5.4% low perviously assessed. However, the additional sales are of Macintosh clones, made by companies other than Apple, such as Umax Technologies, Motorola, and Power Computing. The new studies suggest that one-third of the Macintosh-type computers sold in 4th qtr 1996 were clones, and that the sales of clones may be hurting Apple's sales. Apple receives only a small licensing royalty for each clone sold. Clones have been especially popular in the corporate market, where Macintosh platform sales increased to 9.4% market share in 4th qtr 1996. While clone sales may hurt Apple's revenues, many analysts see them as important to keeping software companies developing for the platform. Twelve companies now have Macintosh licenses, and clone sales are expected to keep increasing, despite Apple's precarious position.

Analog & Hybrid Computers, Licensing agreements, Company licensing agreement, Company market share

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