|
There's Always Doubt (4/17/98)
|
 
|
| | |
About that recent $55 million profit for Q2: a ZDNet story discusses whether or not it actually means anything positive about Apple's future. Just how much did the company's "slash-and-burn" streak contribute to the bottom line? Given that revenues have "stalled," is the profit the result more of Apple's continued job cuts and research reductions than any kind of sustainable business activity?
Here's the shrinkage factor: staff reductions total 31% from a year ago, and research and development spending is down by 50% or so. That accounts for how Apple can post a profit even though its revenues are down by 12%. (See, sales are up, but prices are down-- so Apple actually brought in less money even though they sold more computers.) There's only so much they can cut before they're going to have to try to stay afloat without tossing things out the porthole. So far, we at AtAT think they've made the right cuts-- though the loss of Newton was painful for us, we'd much rather see the Mac survive and thrive.
We're not particularly worried, overall, given Apple's expectation that revenue growth will return by this December. In fact, we wouldn't be a bit surprised if the Powermac All-in-One contributed to increased revenues before that, as we've seen nothing but gushing reviews of the erstwhile Artemis. (Now if Apple would only ship a home version of the thing...)
| |
| |
 |
SceneLink (637)
|  |
 |
|
And Now For A Word From Our Sponsors |
| | | |
|
| |
|
 | | The above scene was taken from the 4/17/98 episode: April 17, 1998: For the first time ever, Apple's barring the press from attending its annual shareholder meeting next Wednesday. Meanwhile, Intuit cans Quicken for the Mac, despite the fact that their CEO is on the Apple board of directors, and doubts continue about whether Apple's profitability is sustainable...
Other scenes from that episode: 635: No Media Allowed (4/17/98) "Investors Only," reads the big flashing neon sign outside the clubhouse. That's the scenario next week for Apple's annual shareholder meeting. Apple has announced that only shareholders of AAPL will be permitted to attend, and non-investing analysts and reporters will have to get past Bruno the Impressively Violent Bouncer if they expect to get inside... 636: Irony Is For Suckers (4/17/98) Say goodbye to Quicken, everybody-- the current version, Quicken 98, is the last we'll see. MacCentral discusses Intuit's recent decision to cease the development of Quicken for the Mac, citing a MacWEEK article that broke the news...
Or view the entire episode as originally broadcast... | |  |
|
|
