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Apple G5 iMac delay will have small financial impact

updated 06:55 am EDT, Mon July 19, 2004

Apple\'s G5 iMac delay

Market research firm IDC says that Apple's G5 iMac delay, due primarily to IBM's inability to produce and deliver significant quanities of the G5 CPU, will have a on the company's bottom line, according to a Reuters report: "The new iMac will miss out on the crucial back-to-school season. Education sales account for about 25 percent of Apple's total revenue...Using 2003 shipments figures as a proxy, Kay said that one month of lost iMac production amounted to about 32,000 units, or about $32 million in sales, Kay said, which IDC translated to a bottom-line hit of about $260,000, after production costs, taxes and other costs. 'We looked at that figure and said it's not that big a deal,' Kay said. 'We think that kind of math is what led the company to make the decision they did (to delay the new iMac launch).'"




by MacNN Staff

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Comments

  1. Monstermind

    Joined: Dec 1969

    0

    Casing

    Is there gonna be a new "form factor", or will it be the Luxo look again?

  1. IonCable

    Joined: Dec 1969

    0

    Sell iMacs

    Apple should rock bottom the current iMacs now. The sales are going to be bad because the new G5 iMac is coming. Drop the price of the G4 iMac to a very low profit margin and gain some share and get some users. A lot of people can't resist a bargin.

  1. dennis

    Joined: Dec 1969

    0

    re: Sell iMacs

    There are no iMacs left to "rock bottom." They're sold out.

  1. gurman

    Joined: Dec 1969

    0

    Arithmetic

    So, Apple clears less than $8 --- eight dollars --- ($260,000/32,000) per iMac sold?

    Does make one wonder why they're even in the business.

    Anyone have any different arithmetic to challenge this?

  1. hayesk

    Joined: Dec 1969

    0

    Education buying season

    I wonder if that many education sales will be missed. A lot of schools buy the eMac, and not only that - schools tend to buy late in the spring. It's not like they send a teacher to the Apple Store on Sepetember 1st to say "I'd like 250 iMacs, please."

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