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Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Richard Habib who wrote (16996)	8/20/1998 3:23:00 PM
From: Andrew Danielson	Respond to of 213182

Q197 had 923,000 units produced. I do not know the answer to Q196, however. Back in '96, though, AAPL had a lot of revenue for printing and imaging products that have since been removed from the line-up. Andrew

To: Richard Habib who wrote (16996)	8/20/1998 4:21:00 PM
From: Eric Yang	Respond to of 213182

"Eric or anyone. 1st qtr 1996 had revenues of 3.146 billion. Does anyone know if there were any unusual revenues." Back in Q1 of 96 Apple sold a whopping 1,300,000 units. This number may mislead people to think that things were nice and rosy. In Q1 96 (chirstmas of 95) Apple was in the middle of the Performa fiasco. Even after recording one of the highest revenue in history Apple was in trouble. Apple lost $69 million that quarter and had $990 million worth of finished goods in inventory. Total inventory was closer to $1.95 Billion! The irony is that pundits often use this $3.15 billion revenue figure as a benchmark to measure future revenue against. Basically the record revenue in Q1 96 was made possible by lowering the prices on low end models and pushing them out the door. Apple didn't know how to make low end machines cheaply back then. Our margin dropped to just 15.1% that quarter. The early Performas sucked big time... Many of those who were disappointed after buying a Performa back then are the same people who are finally compelled by the iMac to upgrade today. "What I'm trying to get at is number of units produced" I didn't follow Apple closely enough to know the details of all the factories back then but, if I recall correctly, Apple still had the Colorado factory at that time. I think the situation so different today that a comparison of current production rate and that of 1995-96 wouldn't be very meaningful. Our production model has changed dramatically The number of different models being produced today is just a fraction of what we were making in 95-96. Today's systems are designed to be more modular and many models share the same motherboard...which explains why our inventory turn rate has improved so much and that our inventory (finished goods, parts, work in progress) is now rough only 1/15th of what it was in Q1 96. Eric