>>CUPERTINO, California - Jan. 14, 1998 - Apple Computer, Inc. today announced financial results for its fiscal 1998 first quarter which ended Dec. 26, 1997. For the quarter, the Company generated revenues of $1.6 billion and unit sales of 635,000. The Company recorded a quarterly net profit of $47 million, resulting in basic and diluted earnings per share of $.37 and $.33, respectively. Apple recorded a net loss of $161 million, or $(1.26) per share, in the September quarter, and recorded a net loss of $120 million, or $(.96) per share, in the year-ago quarter.
The Company achieved gross margins of 22 percent during the quarter, compared to 20 percent in the September quarter and 19 percent in the year-ago quarter.<<
I didn't say that Apple had never had lower margins than it has today. But those low margins in the last calendar quarter of 1997 were not the result of competition forcing the company to cut prices. They were more due to selling only 635,000 computers in the quarter, while still having high expenses.
By the way, Michael Dell would be thrilled to have a gross margin of 22 percent. In the latest quarter, Dell's gross margin was below 17%.
I can't count how many times people have appeared on this thread, or written columns and blogs, talking about how inexpensive computers from every other company in the world were going to force Apple to sacrifice margins in order to maintain market share. But that hasn't happened. Apple's margins on computers are the envy of the industry. |
