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http://www.macnn.com/articles/02/06/18/apple.warns/

Apple warns profits, revenues to fall short

updated 05:00 pm EDT, Tue June 18, 2002

 
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Apple today warned that it expects revenues for the third fiscal quarter of 2002 to fall below original projections of $1.6 billion. Apple warned Tuesday that revenue would reach no more than $1.45 billion. "Like others in our industry, we are experiencing a slowdown in sales this quarter. As a result, we’re going to miss our revenue projections by around 10%, resulting in slightly lower profits,” Apple CEO Steve Jobs said. A financial conference call with CFO Fred Anderson is currently in progress.

Apple said that the lower-than-expected revenues are primarily due to soft demand in the consumer and creative markets such as advertising and publishing. Geographically, revenues in Europe and Japan have become particularly weak. Apple said the revenue shortfall is expected to be offset significantly by higher-than-expected gross margins primarily due to lower costs of some components. Accordingly, the company revised its earnings guidance to $.08 to $.10 per diluted share, compared to previous guidance of $.11 or slightly higher.


by MacNN Staff

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  1. MacNN.com Reader

    Fresh-Faced Recruit

    Joined: Jul 2001

    0

    Creative Industry to Blam

    Boy, who couldn't see this coming months ago? NOBODY in the creative industry, the ones who typically buy PowerMacs, are buying when iMacs are shipping with G4 chips and an LCD for a thousand bucks less than a stupid tower. PowerMacs are a RIP OFF right now, and Apple really needs a jolt here to get creatives buying.

  1. jeremedia

    Fresh-Faced Recruit

    Joined: Jan 2001

    0

    Agreed

    My company, an entertainment marketing company, has just moved the entire creative staff to Dell machines. I had to fight just to keep my old G4 450, and the only reason I could is because I need to make Mac versionds of Director applications. Big shops are NOT moving to new pro Macs at current prices; Mac people do not control the money. We're screwed.

  1. jeremedia

    Fresh-Faced Recruit

    Joined: Jan 2001

    0

    Agreed

    My company, an entertainment marketing company, has just moved the entire creative staff to Dell machines. I had to fight just to keep my old G4 450, and the only reason I could is because I need to make Mac versionds of Director applications. Big shops are NOT moving to new pro Macs at current prices; Mac people do not control the money. We're screwed.

  1. MacNN.com Reader

    Fresh-Faced Recruit

    Joined: Jul 2001

    0

    Huh...?

    "creatives" are such a small part of the pie, that if Apple sticks to catering to them, or even putting them high on the consideration list with product, then you will see more than earnings warnings. Apple WILL NOT survive on feeding off its niche. I disagree with your comment 100%. Apple is doing the right thing, and is STILL relatively strong given the climate. We could bugger every "creative" on the planet and YE_HAW! , Apple will still, STILL be at under 10% market share, or even 5%. THE KEY WORD IS MARKET SHARE. Nobody's kicking a$$ right now, get it?

  1. MacNN.com Reader

    Fresh-Faced Recruit

    Joined: Jul 2001

    0

     

    I'm not even going to start on this subject.

  1. MacNN.com Reader

    Fresh-Faced Recruit

    Joined: Jul 2001

    0

    wrong...

    Re: Huh...?

    ""creatives" are such a small part of the pie, that if Apple sticks to catering to them, or even putting them high on the consideration list with product, then you will see more than earnings warnings."

    Catering to creatives? Nonsense. What's good for "creatives" is good for everyone.

  1. MacNN.com Reader

    Fresh-Faced Recruit

    Joined: Jul 2001

    0

    wrong...

    Re: Huh...?

    ""creatives" are such a small part of the pie, that if Apple sticks to catering to them, or even putting them high on the consideration list with product, then you will see more than earnings warnings."

    Catering to creatives? Nonsense. What's good for "creatives" is good for everyone.

  1. testudo

    Forum Regular

    Joined: Aug 2001

    0

    c***!

    Damn, Apple's missing revenue targets! I guess its time for me to sell my Mac and get a Dell machine!!! Probably should dump my stock (ha!, if I only I heeded the warnings of all those Apple folks selling off). Let's start the "Apple goes bankrupt!" countdown now. I give them three months, tops...

  1. MacNN.com Reader

    Fresh-Faced Recruit

    Joined: Jul 2001

    0

    if true

    he Walt Disney Company, the doyen of animation studios, is joining Hollywood's embrace of a technological upstart — the GNU Linux operating system.

    Disney's animation division is announcing today that it plans to use Hewlett-Packard workstations and data-serving computers running Linux for digital animation work in the future.

    The Disney move is the latest commitment by major studios and special-effects houses — including DreamWorks SKG, Pixar Animation Studios, Industrial Light and Magic and Digital Domain — to Linux, which is a variant of the Unix operating system that is distributed free and under terms that allow programmers to fine-tune the software.

    if this is true, why doesn't pixar buy some macs and put steve's money where his mouth is? Just wondering....(clip was taken from nytimes today.)

  1. MacNN.com Reader

    Fresh-Faced Recruit

    Joined: Jul 2001

    0

    Sell!!

    Before the stock tanks tomorrow!!

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