<Amelio said after the $25 million profit announcement of the 3rd quarter that Apple will begin to show profit from there on, or something to that effect. He was obviously wrong>
Not exactly. AAPL officers have repeatedly stated that the company wouldn't reach SUSTAINABLE profitability until the quarter ending Mar 97. I've been expecting a small loss in the quarter just ended since October. This $100 mil or more is a really big loss, though, and coupled with the NeXt purchase it OUGHT TO impact negatively on the share price for the next month or so.
Not that I think the purchase of NeXt was a mistake. On the contrary, while I was looking for a purchase of Be, NeXt, while expensive, does seem to be the right way to go in terms of building a new OS in the shortest period of time. Hopefully, we will see some technologies licensed or purchased from Be as well.
So, I wouldn't buy any more APPL in the next couple of weeks, but long-term it is fair to expect that the company will see a turnaround.
John |
