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From MacMinute.com

October 16, 2002 - 16:39 EDT Apple today posted a fourth-quarter net loss of US$45 million, or $.13 per share on revenues of $1.44 billion. This compares to a net profit of $66 million, or $.19 per diluted share, in the year-ago quarter. Revenues for the quarter were $1.44 billion, flat with the year ago quarter, and gross margins were 26.4 percent, down from 30.1 percent in the year-ago quarter. For the year, the company reported net earnings of $65 million on revenues of $5.74 billion, compared to a net loss of $25 million on revenues of $5.36 billion in 2001. In addition, Apple said that it shipped 734,000 Macintosh units during the quarter, down 14 percent from the year-ago quarter.

"Though our industry continues to struggle, we had some bright spots this quarter -- Mac OS X v10.2 Jaguar is a big hit and on track to have 5 million users by the end of this year, our 'Switchers' campaign is very well received and is attracting a lot of new customers, and our retail stores sold over $100 million and hosted 2.25 million visitors this quarter," said Steve Jobs in a statement. "Looking forward, we do not expect our industry to pick up anytime soon, though we're hoping to help put a lot of iPods, iMacs and iBooks under trees this holiday season. With the stability of our rock-solid balance sheet, Apple will continue to invest through this downturn to create the industry's most innovative products and best buying experience."

"Looking ahead to the first quarter of 2003, we expect revenue to be up slightly from the September quarter, and expect a slight profit for the quarter before non-recurring items," noted Apple CFO Fred Anderson in the press release.
 

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7 Million profit without charges. Interesting split on consumer Macs: Channel inventory reduced. 318,000 iMacs shipped. 76,000 were CRT iMacs, 129,000 eMacs, 113,000 flat panel. Sales exceeded expectations. iBook 180,000+ shipped.

40% of ed sales were iBooks.

Not a bad quarter for Apple considering all things.
 

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Plus....
Apple-owned retail store sales rose to $102 million in the quarter from $63 million the previous quarter, and 40 percent of the Macintoshes, measured by processors, were bought by users new to the Mac platform.

Via Yahoo Finance ...

So Apple lost 45 Million and gained 39 Million at the retail store
:rolleyes:

[Before you'all start I know it cost them alot to open all these stores but that is progress.......build it and they will come. ;) ]
 

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You make a good point RTC. I think the idea of the Apple retail store is good for exposure and it will likely build market share. At what cost is the question though? In the short term, I think there were a lot of die hard Mac enthusiasts that were so excited to see an Apple store they hauled out good old M/C. They definitely had a lot of impulse buyers that may not have spent their money at the on-line store. The real question is what will happen in the years to come as you suggested.

Apple-owned retail store sales rose to $102 million

That figure may look impressive but means little to nothing. If the Apple retail stores were on another planet then it would be a valuable statistic. I do like the convenience of on-line shopping but the Apple stores are impressive to say the least. If you live near an Apple Store and you had the choice of going to it or going on-line to make a purchase, Which would most people choose? Does anyone have the numbers of by how much Apple On-line sales dropped by region, as the result of a nearby Apple retail store?

I do not think the Apple stores will remain profitable in the years to come and even this year is questionable. If you substitute your sales in one location for sales in another with increased overhead it is unlikely. If you increase market share to a point that overall sales more than offset the additional expense that would make sense.

A lot of people simply can not afford a Mac regardless of how good they are. Apple enjoys nice margins and could stand to reduce pricing on some of their models. I do understand their thinking though. The higher end systems have the best margin and the people looking at those are least price sensitive. Maybe Apple needs a loss leader of sorts to make people switch. Why does Apple not go for volume? PC manufactures have the benefit of economies of scale. They do have a superior product to Apple but they are affordable for most. If Apple had confidence in their product and actually believed in their own marketing they would take the chance and reduce pricing.

I am ready to buy a new PowerMac when Apple is ready to sell.

Ron
 

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<BLOCKQUOTE>quote:</font><HR>Originally posted by RicktheChemist:
The worry about the Apple store is not this year or next but in the following years (i.e. 2004, 2005, 2006). Will Apple be able to keep people coming back to the Apple stores...<HR></BLOCKQUOTE>

Uh, yeah. In 2006, who's not going to want/need a new hover iMac with quadruple G6 processors and 48x DVD burning superdrives and wireless power? Point being, there will always be new technology "first on a Mac" which will keep bringing in customers to Apple stores.

Rock on, Apple! :cool:
 

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<BLOCKQUOTE>quote:</font><HR>Originally posted by Ron W:
Maybe Apple needs a loss leader of sorts to make people switch. Why does Apple not go for volume? PC manufactures have the benefit of economies of scale. They do have a superior product to Apple but they are affordable for most. If Apple had confidence in their product and actually believed in their own marketing they would take the chance and reduce pricing.

I am ready to buy a new PowerMac when Apple is ready to sell.
<HR></BLOCKQUOTE>

They don't go for volume because they can't afford to. Every other PC manufacturer out their is going for volume, and all of them except for Dell are hemmoraging money, and the only reason Dell is not is because they don't have to deal with any of the costs of selling retail.

Couple this with the fact that most of Apple's revenues come from hardware and it is easy to see why they don't cut prices. I am not saying I am happy about this really, just that I understand it.

What I'd like to see is a cheap tower from Apple. maybe they could bring back some of the Single processor Quicksilvers or something to sell cheap. The eMac/iMac are good and all, and I see where they are coming from with the all-in-one approach, but there are a lot of PC users in the world who just can't give the "Tower or Nothing" mentality a rest.

Of course that's just my opinion, I could be wrong.

--PB
 

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<BLOCKQUOTE>quote:</font><HR>Originally posted by PosterBoy:

They don't go for volume because they can't afford to. Every other PC manufacturer out their is going for volume, and all of them except for Dell are hemmoraging money, and the only reason Dell is not is because they don't have to deal with any of the costs of selling retail.
<HR></BLOCKQUOTE>

Very true. Dell is eating into other PC manufacturers marketshare, they can afford to price low when they're winning marketshare.

As for the novelty of the Apple Stores, it's inevitable that some of it will wear off. But some traffic will stay because people want to test-drive machines before they buy.
 

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I think traffic will stay just because there are a lot of people out their who are very curious about Macs and what they can do. The whole Linux/UNIX crowd for example, have not really begun to move in droves, but I bet they will. Look at the Godfather of Switch, he was a UNIX guy before. There have been quite a few Linux users who have written about their successes with OS X as well.

There are more people coming in to my store (primarily a PC reseller) to ask about Mac stuff every month.

Besides all of that, the Apple stores are more about education and dispelling myths at this point. If they can get Win users to at least look, then that is what they are primarily concerned with right now. The more people they get interested, the more people buy, the more people buy the more marketshare they can gain. Once they get their numbers up a little, they will focus more on streamlining the stores.

--PB
 
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