Apple Financial Warning: Poor sales

Posted:
in General Discussion edited January 2014
<a href="http://www.apple.com/pr/library/2002/jun/18guidance.html"; target="_blank">http://www.apple.com/pr/library/2002/jun/18guidance.html</a>;





well it looks like the PowerMac line really is selling poorly and perhaps the iMac G4 is not meeting their sales expectations.



This would explain the drastic rebates and offers that have been on the PowerMacs for the past few months.



I think Apple may be forced to announce a major PowerMac revision at MWNY now. Even if they aren't ready at that time.
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Comments

  • Reply 1 of 99
    emaneman Posts: 7,204member
    Didn't we know the PMs weren't selling well? They need something either more competitive or lower the prices.
  • Reply 2 of 99
    spindlerspindler Posts: 713member
    The megahertz problem is really a disaster. Apple was making $100 - $150 million per quarter a couple of years ago. The profit was coming largely from the 350K- 400K PowerMac sales. Now they are making $40 million with 210K sales. What happens when PowerMac sales fall to 150K or even 100K per quarter? Apple will start LOSING $50 million per quarter.



    People on these boards b*tch about Apple charging $20 for an upgrade CD or claim this price is too high or Apple should have thrown that in for free. We should be THANKFUL in this world of Jerry Springer and McDonalds that there is someone passionate about making a great product. Apple is basically a company swimming against the tide. They don't have an easy time turning even a modest profit.



    In the long run they MUST move to x86 if the PowerPC can't keep up. They can not simply forfeit the pro market because they don't have fast enough machines. Apple isn't exactly gaining new customers anywhere so they HAVE TO do whatever they can to keep the ones they have. The pro market is not coming back until the hardware can compete and that's all there is to it.



    Apple is on a downward spiral and any further down will be into loss territory.
  • Reply 3 of 99
    spindlerspindler Posts: 713member
    "Didn't we know the PMs weren't selling well? They need something either more competitive or lower the prices."



    They DID lower the price with a $200 rebate. That's what makes it even scarier.
  • Reply 4 of 99
    fotnsfotns Posts: 301member
    [quote]Originally posted by spindler:

    <strong>In the long run they MUST move to x86 if the PowerPC can't keep up....Apple is on a downward spiral and any further down will be into loss territory.</strong><hr></blockquote>

    Prepare to be flamed.

    <img src="graemlins/lol.gif" border="0" alt="[Laughing]" />
  • Reply 5 of 99
    bluejekyllbluejekyll Posts: 103member
    I think there is no longer a clear distinction between the Power of the Power Mac and that of a G4 iMac or eMac. And you don't get a monitor. I mean, they really shot themselves in the foot by making their low end computers as good as the high end ones. There is no longer a reason for someone to choose the Power Mac over the others, with the exception of people who want larger monitors and more expandability...



    If Apple were to switch to Intel, they should just jump to Itanium and forget x86, since that is where the future of intel is. But the PowerPC is still good.



    If they want to get the PowerPC to advance faster, they are going to need others to help out. Get SGI and Sun on board or HPAQ, or IBM to start incorporating more Power4 technology into the PowerPC, and they should use the PowerPC in all their systems. Then we would be in a much better position... <img src="graemlins/bugeye.gif" border="0" alt="[Skeptical]" />



    [ 06-18-2002: Message edited by: BlueJekyll ]</p>
  • Reply 6 of 99
    emaneman Posts: 7,204member
    [quote]Originally posted by spindler:

    <strong>"Didn't we know the PMs weren't selling well? They need something either more competitive or lower the prices."



    They DID lower the price with a $200 rebate. That's what makes it even scarier.</strong><hr></blockquote>



    For what you're getting I really don't think $200's enough.
  • Reply 7 of 99
    Another nail in Apple's coffin. I give Apple three years, tops.



    Unless we see some dramatic improvements to the PowerMac line and the situation of PPC soon, I don't see how Apple can survive.



    [ 06-18-2002: Message edited by: Nostradamus ]</p>
  • Reply 8 of 99
    amorphamorph Posts: 7,112member
    It's probably a combination of: a lot of people not seeing convincing value for money, and a lot of people holding out for MWNY.



    A DDR PowerMac with a bumped G4 would go a long way toward revitalizing sales. It might not bring them back to their old levels, but it certainly couldn't hurt. There would be a more-than-MHz-increase boost in performance just because the processor(s) would be getting better, faster bandwidth to memory; throw in Jaguar and next generation video cards and you have a pretty compelling upgrade.



    Apple will still have some work to do, though, so (with moki and Programmer) I'm hoping for another substantial boost at MWSF. Apple hasn't refreshed the PowerMac line this quickly before, but they also haven't been playing catch-up before.
  • Reply 9 of 99
    scott f.scott f. Posts: 276member
    [quote]Originally posted by Nostradamus:

    <strong>Another nail in Apple's coffin. I give Apple three years, tops.



    Unless we see some dramatic improvements to the PowerMac line soon, along with competitive pricing and performance, I don't see how Apple can survive.



    [ 06-18-2002: Message edited by: Nostradamus ]</strong><hr></blockquote>



    I've been hearing the EXACT same thing from PC-Users for the past 10 years... if it were true... the coffin is all nails at this point... no more room... yet Apple still lives.



    It's easy for anyone to spew-out a blanket, generalized statement and sit-back with a 50/50 chance that they will be "right", based on nothing.



    <img src="graemlins/oyvey.gif" border="0" alt="[No]" /> <img src="graemlins/bugeye.gif" border="0" alt="[Skeptical]" /> <img src="graemlins/oyvey.gif" border="0" alt="[No]" />
  • Reply 10 of 99
    buonrottobuonrotto Posts: 6,368member
    I'd bet the major falloff is with iMacs. Their boosted price moved them just out of people's range in this economy. That would explain the "eMac for everyone" change in attitude. Seemed like the obvious thing to do at the time, but suddenly a bad economy and a jump in the price of components hit them. It's bad timing.



    The PowerMacs need a big shot in the arm too, but their numbers seem to be fairly consistent over the last several quarters so I don't think their sales are a big surprise.



    Moving to x86 is short sighted. Even Intel is starting to move off that line of processors. If Apple moves on to x86, it will be just in time for Intel and AMD to abandon the architecture. But no one thinks ahead. <img src="graemlins/hmmm.gif" border="0" alt="[Hmmm]" />



    As for Nostradamus, he's just too emotionally attached to Apple. He went from blind faith to blind pessimism. The more level-headed should be worried, but not quite so dire.
  • Reply 11 of 99
    applenutapplenut Posts: 5,768member
    [quote]I mean, they really shot themselves in the foot by making their low end computers as good as the high end ones. <hr></blockquote>



    defnitely not. it's the other way around. they shot themselves in the foot by lowering the PowerMac to consumer machine levels and keeping a very pro price.



    I don't mind the PowerMacs being expensive. But I do mind when you are paying that much money for hardware that is nearly identical to what they sell for 1300 bucks.



    [quote]

    If they want to get the PowerPC to advance faster, they are going to need others to help out. Get SGI and Sun on board or HPAQ, or IBM to start incorporating more Power4 technology into the PowerPC, and they should use the PowerPC in all their systems. Then we would be in a much better position...



    <hr></blockquote>



    none of those seem ike things Apple needs right now to improve their situation.



    [quote]'ve been hearing the EXACT same thing from PC-Users for the past 10 years... if it were true... the coffin is all nails at this point... no more room... yet Apple still lives.



    It's easy for anyone to spew-out a blanket, generalized statement and sit-back with a 50/50 chance that they will be "right", based on nothing.<hr></blockquote>



    that's very true but Apple is in a very difficult situation right now. They have always been expensive but at least you were getting a great performing computer for the money. Now they are expensive and the performance and technology are seriously lagging.



    Motorola and the G4 are killing them.



    They need to completely revamp the PowerMac. This means new case and most importantly new processor with completely new motherboard architecture. Apple needs to take the lead in something. If they need specialized chipsets to do then be it. It'll addd cost but at least they'll be respectable.
  • Reply 13 of 99
    rbaldrbald Posts: 108member
    I'll say it again what Apple needs to do is give up the hardware business altogether! License out the os to any vender who wants to produce hardware to run the os! This is the only way Apple will be able to survive! In essence follow the Microsoft model! When are you Mac people going to realize this
  • Reply 14 of 99
    frawgzfrawgz Posts: 547member
    Thanks Eugene.
  • Reply 15 of 99
    kecksykecksy Posts: 1,002member
    This does not surprise me at all. 3rd quarter is always rough with MWNY around the corner. While I think the Apple's current offerings are great, many Mac users are undoubtedly waiting for something more compelling to be announced before spending $1500-3000 on a new system. Since a new computer is not cheap and most users won't be upgrading again after their purchase until they absolutely have to, I can understand the wait mentality. Would announcing all new PowerMacs now help Apple's situation. Yes, but only if they could ship them immediately. Another price cuts on current PowerMacs? With MWNY so close, loosing another $200 would do very little for sales. Too bad, but at least Apple is turning a profit, plus they have a much stronger product line up in my opinion then they did a year ago. As long as they continue to innovate, Apple will survive. Sales should pick up once the next generation PowerPC chips arrive.
  • Reply 16 of 99
    windmanwindman Posts: 17member
    THIS IS VERY BAD FOR APPLE. Why CANT you Guys SEe that THERE is just TOO little MARKet for APPLE? WHAT good HAS OSX done? Have APPLe sales SKYrockETted? HAVe huge MASSES of people SWITCHEd frorm Other PLAtforms to APPLE?



    NONONO
  • Reply 17 of 99
    [quote]Originally posted by applenut:

    <strong>



    that's very true but Apple is in a very difficult situation right now. They have always been expensive but at least you were getting a great performing computer for the money. Now they are expensive and the performance and technology are seriously lagging.



    Motorola and the G4 are killing them.



    </strong><hr></blockquote>



    Isn't this the same drivel people were saying when the PowerMacs were stuck at 500 MHz? Yet here we are, 2 years later, and Apple isn't dead yet, is it?



    You people are surely the biggest bunch of doomsayers ever. How do you all react when you get a zit? Do you start looking into plastic surgeons? Geez.
  • Reply 18 of 99
    spindlerspindler Posts: 713member
    Amorph wrote:



    "It's probably a combination of: a lot of people not seeing convincing value for money, and a lot of people holding out for MWNY."



    I disagree that it's got anything to do with people waiting until MWNY. PowerMac sales have been down for a long time. At first we said they would pick up when OS X came out. Then last winter we said people were waiting for MacWorld in January and the expected 1 GHZ machines. Then we said that professional customers were waiting for native OS X apps like Photoshop. The gap is big enough that I don't think customers are waiting for small increases.



    I don't mean to be pessimistic, but most people here are not realistic. Junkyard Dawg is very realistic and he usually gets flamed. I'm not saying the end is near for Apple but I like solid logic and it seems people keep repeatedly saying that things will get better but they don't keep track of their predictions.



    If this "Switchers" campaign does not produce results than I think that we can conclude that Apple has no real chance of DIRECTLY getting Windows users to move to the Mac. They have tried everything from distinct differences like the iApps to a better buying experience at the Apple Store to very direct commercials. If they have no results in the next six months then it's just not going to work directly.



    So then what they need to do is go indirectly. Offer iPod for Windows. Sell iTunes, iMovie, and iPhoto for Windows cheaply or give them away free. If these differences don't get people to buy a Mac then Apple has to try to build a brand name with Windows users while they are using their Windows machine.
  • Reply 18 of 99
    applenutapplenut Posts: 5,768member
    [quote]Originally posted by Shanny:

    <strong>



    Isn't this the same drivel people were saying when the PowerMacs were stuck at 500 MHz? Yet here we are, 2 years later, and Apple isn't dead yet, is it?



    You people are surely the biggest bunch of doomsayers ever. How do you all react when you get a zit? Do you start looking into plastic surgeons? Geez. </strong><hr></blockquote>





    yawn.. while trying to make it seem like you have a clue what you're talking about you neglect the fact that PowerMac sales have gotten consistantly worse since the 500Mhz fiasco and that iMac sales are still no where near where they were in its prime (1999).
  • Reply 20 of 99
    [quote]Originally posted by applenut:

    <strong>





    yawn.. while trying to make it seem like you have a clue what you're talking about you neglect the fact that PowerMac sales have gotten consistantly worse since the 500Mhz fiasco and that iMac sales are still no where near where they were in its prime (1999).</strong><hr></blockquote>



    Yea, I forgot you work for Apple.

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