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Technology Stocks : Apple Inc.
AAPL 278.79-0.7%Dec 5 9:30 AM EST

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To: Eric Yang who wrote (8755)2/25/1998 12:09:00 AM
From: Perry  Read Replies (1) of 213173
 
Apple product shortages? See below. If you read the article it says the G3 powerbooks are hard to come by in some locations. This may be a sign that the powerbooks are selling again. I recall that powerbook sales were a little disappointing the last couple of quarters. Another piece of good news is that, "the older models are harder to come by now!" No inventory write downs for this upcoming Q?

Perry

Apple to cut prices, unveil
servers
By Jim Davis
Staff Writer, CNET NEWS.COM
February 24, 1998, 5:05 p.m. PT

Apple Computer (AAPL) is set to lower prices on its
popular Power Macintosh "G3" machines, and will
also release new server computers, a new product
twist for Apple.

In addition to price cuts ranging up to about 17
percent, Apple will roll out new low-end servers
based on the G3 processor, as part
of its strategy to provide servers to
the education and business
markets.

Price cuts will come in desktop
and minitower versions of its
Power Macintosh line. Apple will
lower prices on the basic G3
desktop system with 233-MHz
PowerPC 750 chip, from $1,999
to $1,699, according to industry
sources familiar with the announcement. A G3
minitower with 233-MHz PowerPC 750, built-in
modem, and extra communications software will be
priced at $1,999, a reduction of $150.

The biggest price reduction is reserved for the G3
minitower system with a 266-MHz PowerPC 750. The
system was priced at $2,999, and will be cut 16.6
percent to $2,499. A 266-MHz desktop system is now
priced at $2,299, and will be priced at $1,999.

The popularity of the new G3 systems helped propel
Apple to a first quarter profit. Company officials
have noted that the second quarter is typically a slow
one, but the price cuts could keep systems sales
relatively high. Nevertheless, some resellers are
beginning to experience shortages of products such as
the G3 notebooks, and the older Power Macintosh
8600 and 9600 systems are also getting hard to find in
some areas.

The servers are a new twist for Apple, which has not
been active in this market. A visit to the company's
online storefront reveals that Apple currently doesn't
offer any servers.

That will change later this week when Apple
introduces workgroup servers with either a 233-MHz
or 266-MHz PowerPC 750 processor, a CD-ROM
drive, high-performance 4GB hard drives, and
built-in networking capabilities. Prices are expected to
be around $3,700 for the 233-MHz model and $4,900
for a 266-MHz system with dual hard disk drives,
sources said.

Meanwhile, Apple is experimenting with bringing
build-to order capabilities to its resellers, industry
sources said. The company promised back in
November of 1997 that resellers would have the
ability to sell custom-configured G3 systems, much as
Apple now allows individuals to configure computers
they buy online from Apple.

Apple is offering some resellers a limited number of
configuration options as the company debates whether
to allow reseller partners to configure the systems
themselves or continue requiring orders to be shipped
complete from Apple, sources said. It has been
expected that full build-to-order capabilities for
resellers could come by March.

Education customers may have similar options soon.
It is rumored that Apple might unveil a new online
store for education customers this week, which would
allow schools to purchase custom systems through
their own personalized Web sites. Currently, schools
buy systems direct from Apple representatives, or
they can use the more generic Apple Web site.
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