Though Apple Computer posted a fiscal
second-quarter profit yesterday that beat Wall Street estimates, the company has also reduced its outlook for the second half of the year. And the product summary for the quarter shows that professional systems are doing very well, but the consumer line is way off. As for the Cubes, well, it’s sinking fast, to put it kindly.
In a press conference following the financial announcement, Apple Chief Financial Officer Fred Anderson said Apple now expects to bring in US$3.2 billion to $3.4 billion during the second half of its fiscal year — down from a prior estimate of $3.6 billion.
The bright spot of the quarter in hardware was the sales of the Titanium PowerBook. Apple sold 115,000 of the new portables. Anderson said they anticipate reducing the backlog of orders to a “normal” level by the end of the month. PowerBook sales zoomed 173 percent and revenues were up 306 percent from the previous quarter. The TiPB also boosted Apple’s PowerBook sales 34 percent from the corresponding period of 2000 — and helped raise PowerBook revenues by 35 percent.
However, other systems didn’t fare so well. Only 12,000 G4 Cubes were sold; that’s less than half of the 29,000 units shipped the previous quarter — and that number was considered a major disappointment. Apple also shipped 3 percent fewer iMacs and brought in 8 percent less revenue from the consumer desktops than the previous quarter. Those figures are down a 37 percent (units) and 47 percent (revenue) from the corresponding financial period in 2000. iBooks sales also dipped 45 percent from the previous quarter and brought in 52 percent less money. Unit shipments of the consumer portables were off 52 percent and revenue was down 47 percent year-over-year.
Power Mac shipments dropped about 30 percent in terms of units and dollars. However, these figures would have probably been better had supplies of the much-in-demand Power Mac G4 733/SuperDrive system not been terribly constrained. Power Mac G4 shipments were up 45 percent and made 76 percent more dough than the previous quarter. Alas, the figures are down 29 percent (units) and 31 percent (revenue) in year-over-year change.
As for geographic segments, Japan and the US are doing well, but other areas are off dramatically. Compared to last quarter, the Americas are up 24 percent in units and 50 percent in revenues; Japan is up 75 percent and 155 percent respectively; the Asia Pacific region is down 3 percent and 28 percent respectively; and Europe, the Middle East, and Africa are down 13 percent and 9 percent respectively.
Compared to the second quarter of 2000, the Americas were down 25 percent in units and 22 percent in revenues; Japan was down 39 percent and 39 percent respectively; the Asia Pacific region was down 28 percent and 30 percent respectively; and Europe, the Middle East, and Africa are down 28 percent and 24 percent respectively.
Of course, all technology firms are hurting. And, in Apple’s perspective, though it’s long in the tooth in computing years, the iMac, whose form factor is nearly three years old, still has life in it yet. Though Apple is almost certainly planning a major overhaul — if not this year, then in 2002 — the cute computer that “saved” Apple still does okay.
Anderson said that Blue Dalmation iMacs accounted for approximately 20 percent of the total iMacs sold during the second quarter. New computer users comprise about 28 percent of the folks who purchase iMacs and Windows users make up around 15 percent, he added. These figures have held relatively consistent since the iMac’s debut.
In February, Apple debuted a new line of iMacs with CD-RW drives and iTunes. With PowerPC G3 processors running at up to 600 MHz, up to 40 GB hard drives, FireWire ports, and iMovie software on all systems, the new consumer models comes in two new patterns, Blue Dalmatian and Flower Power, as well as the two most popular iMac colors, Indigo and Graphite.
Or perhaps that should be the former two most popular colors. Anderson said that sales of Blue Dalmatian iMacs account for approximately 28 percent of total iMac sales.