High warranty costs and a whack of layoffs. now, given Apple's overall rise in CPU sales, the warranty costs could simply be a pra-rated effect. And emplyeee layoffs could also be part of a shuffle as they opened more stores last year:

http://www.macobserver.com/article/2005/02/01.14.shtml

http://macnn.com/news/27907

http://www.appleinsider.com/article.php?id=865

The layoffs might have something to do with their re-org here in Canada.. they basically fired everyone in the reseller dept. at Apple Canada.... who needs reseller staff when we have our own store is what I think Jobs said in the meeting that decided to get rid of all those Apple employees here in Canada....

RtC

More details from the filing -- including talk about Apple Corp (the Beatles) and MS:

http://www.macworld.co.uk/news/index.cfm?NewsID=10764&Page=1&pagePos=9