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To: Ian@SI who wrote (37557)	9/28/2000 5:41:23 PM
From: Proud_Infidel	Respond to of 70976

It's up to each individual to determine whether they want to use this as a data point in determing overall PC demand. I really do not, since Apple is a niche player selling very expensive machines. I prefer to use Wintel companies as a proxy of the health of the market. Apple Computer sees Q4 net below expectations (UPDATE: Adds details, dateline previous Cupertino) PALO ALTO, Calif., Sept 28 (Reuters) - Apple Computer Inc. (NasdaqNM:AAPL - news) on Thursday warned its fourth quarter earnings would fall as much as 33 percent short of forecasts because of a sales slowdown that hit all geographical regions as well as its key education market and its showcase product, the new Power Mac G4 Cube. ``We've clearly hit a speedbump,'' Apple Chief Executive Steve Jobs said in statement. The company said it expects to report fourth quarter earnings per share diluted, excluding investment gains, between 30 and 33 cents per diluted share, rather than the 45 cents that had been expected by most industry analysts. Apple said it expects to report revenues between $1.85 billion and $1.9 billion. In light of the slowdown, the company said it would reevaluate forecasts going forward and would reduce growth targets for its next fiscal quarter and year. Apple said it would provide those updated forecasts when it reported fourth quarter earnings on October 18. In a statement, Apple Chief Financial Officer Fred Anderson said the shortfall resulted from soft overall sales combined with weakness of Education product sales, which usually peak in December, and disappointing sales of its Cube. Apple's warning comes just one week after Intel Corp. (NasdaqNM:INTC - news), the world's largest chip maker, warned of lower than expected third quarter revenues sending jitters through the high-tech sector. Although Apple shares had tumbled along with several PC maker stocks at that time, analysts said they were generally upbeat about the company's outlook and the demand for a slew of new products it has introduced.

To: Ian@SI who wrote (37557)	9/28/2000 6:11:51 PM
From: Tony Viola	Read Replies (1) \| Respond to of 70976

Ian, re Dell, Rudedog and a couple of other posters did a nice job of (trying to) analyze the Dell server cuts, on the Dell thread last night. I think they were almost as baffled after quite a few posts, in which they really built on each others information, as when they started. What Dell did is cut server prices across the board, including some which include Xeon CPU chips that are in short supply from Intel, and have not been reduced in cost. And, those Xeons are very expensive. It looks like Dell just erased all margin on those servers in taking them down 40+ percent. Rudedog and friends couldn't see enough other component cost reductions, of parts that go into those servers, to justify the server cuts and maintain some margin. To me, Dell's action could be yet another indicator of a company struggling to make a quarter. And, if it clobbers margins, will they make it anyway? The other possibility is that Dell is falling much further behind the clear leader in that server space, Compaq. I think it's mostly the latter, but JMHO. Tony