Feeds

Apple achieves anticipated double-digit growth

Units, profits, revenues -- all up in Q1 2000

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

Apple CFO Fred Anderson's prediction that the company would achieve double-figure growth during its first quarter of fiscal 2000 proved accurate yesterday when he announced profits of $183 million on revenues of $2.34 billion. Those figures represent increases of 20 per cent and 37 per cent, respectively, on the same period last year. Once again, Apple sold off a heap of ARM shares, though for once the sale did little to inflate the company's net profit. Some $101 million of ARM shares were shifted, offsetting a $6 million restructuring charge and a $90 million "special executive bonus" -- Steve's LearJet, in other words. All that led to a surplus of $5 million, taking the quarter's profit from $178 million to $183 million. During the period, Apple shifted some 1,377,000 Macs, in increase of 46 per cent year on year. The total number of systems shipped includes over 700,000 iMacs and 235,000 iBooks. In other words, 68 per cent of Apple's revenue is nominally coming from the consumer space rather than its traditional professional marketplaces. While that's good for Apple's attempts to remodel itself as a consumer brand, it does mean it's being forced to operate in the toughest sector of the PC market, which probably explains why its gross margins were down from 1999's 28.2 per cent to 25.9 per cent. Increased component costs -- in particular, DRAM -- inflated pre-Christmas air freight charges and weaker-than-expected sales of MacOS 9 were also highlighted by Anderson as factors pulling down Apple's gross margins during the quarter. Apple sold over 350,000 Power Mac G4 machines, thanks to a rather better supply of PowerPC 7400 (aka G4) processors from Motorola during the quarter. That said, sales would have been higher had Motorola fixed the 500MHz speed-limit bug and produced sufficient 500MHz CPUs during the period. Anderson refused to comment on 500MHz G4 availability, so it's still unclear when Apple will ship its proposed 500MHz machine. Meanwhile, the megaHertz gap between Mac and Wintel continues to widen. Looking ahead, Anderson said Apple's recent tie-in with US ISP Earthlink, which will see all US Macs pre-configured to access the Net via Earthlink, should generate $25-35 million of gross profit for the company over the next year. The belated release of the company's next-generation notebook, codenamed Pismo, should grow its professional portable sales. The release of Apple's PalmOS-based handheld should add another new revenue stream to the company's business. ®

Security for virtualized datacentres

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
Feds seek potential 'second Snowden' gov doc leaker – report
Hang on, Ed wasn't here when we compiled THIS document
Verizon bankrolls tech news site, bans tech's biggest stories
No agenda here. Just don't ever mention Net neutrality or spying, ok?
NATO declares WAR on Google Glass, mounts attack alongside MPAA
Yes, the National Association of Theater Owners is quite upset
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Choosing a cloud hosting partner with confidence
Download Choosing a Cloud Hosting Provider with Confidence to learn more about cloud computing - the new opportunities and new security challenges.