Help Cloud9 make a decision about what kind of computer to buy

[Asher]

There's always something, isn't there, Cloud9?

Look, it's obvious no matter what anyone says, no matter how much evidence mounts up against you, you're not going to change your mind.

Why don't you just get the thread locked and go buy your Mac?

[Mr. Nice Guy]

I still have a link to post.

[Asher]

Don't bother, if everyone in the world shot it down you'd still go "Well after I buy it I'll see that you ARE ALL LYING TO ME " and buy it anyway.

Don't waste your time.

[Mr. Nice Guy]

[Mr. Nice Guy]

The decline in PC sales did not only affect Apple; it affected the entire PC market:

http://www.msnbc.com/news/782802.asp

http://money.cnn.com/2002/07/19/technology/pcsales.reut/index.htm

http://www.reuters.com/news_article.jhtml?type=search&StoryID=1221878

Despite missing expectations in Quarter 3, Apple still profited(from Nasdaq.com):

Apple Reports Third Quarter Results

CUPERTINO, Calif., July 16 /PRNewswire-FirstCall/ -- Apple(R) (Nasdaq: AAPL) today announced financial results for its fiscal 2002 third quarter ended June 29, 2002. For the quarter, the Company posted a net profit of $32 million, or $.09 per diluted share. These results compare to a net profit of $61 million, or $.17 per diluted share, in the year ago quarter. Revenues for the quarter were $1.43 billion, down 3 percent from the year ago quarter, and gross margins were 27.4 percent, down from 29.4 percent in the year ago quarter. International sales accounted for 42 percent of the quarter's revenues.

Apple shipped 808 thousand Macintosh(R) units during the quarter, down 2 percent from the year ago quarter.

"Even in this extended worldwide downturn, Apple is continuing to be profitable and continuing to innovate," said Steve Jobs, Apple's CEO. "We're working hard to attract new customers with our 'Switchers' advertising campaign and our 31 retail stores, and we're continuing to invest in a strong slate of new products, some of which we'll talk more about at Macworld New York tomorrow."

"Despite the slowdown in the market, our operational efficiency was excellent," said Fred Anderson, Apple's CFO. "Our balance sheet is very strong, with $4.3 billion in cash, and we achieved a very efficient cash conversion cycle of -36 days. We expect September quarter revenues to be approximately flat with the June quarter, and expect a slight profit for the quarter before any non-recurring items."

Apple will provide live streaming of its Q3 2002 financial results conference call utilizing QuickTime(R), Apple's standards-based technology for live and on-demand audio and video streaming. The live webcast will begin at 2:00 p.m. PDT on Tuesday, July 16, 2002 at http://www.apple.com/quicktime/qtv/earningsq302/ and will also be available for replay. The QuickTime player is available free for Macintosh and Windows users at www.apple.com/quicktime.

This press release contains forward-looking statements about future revenues and profit. These statements involve risks and uncertainties and actual results may differ. Potential risks and uncertainties include continued competitive pressures in the marketplace; the effect competitive and economic factors and the Company's reaction to them may have on consumer and business buying decisions with respect to the Company's products; the ability of the Company to make timely delivery of new programs, products and successful technological innovations to the marketplace; the continued availability of certain components and services essential to the Company's business currently obtained by the Company from sole or limited sources; possible disruption in commercial activities caused by terrorist activity and armed conflict, such as changes in logistics and security arrangements, and reduced end-user purchases relative to expectations; risks associated with the Company's retail initiative including significant investment cost, uncertain consumer acceptance and potential impact on existing reseller relationships; the effect that the Company's dependency on manufacturing and logistics services provided by third-parties may have on the quality or quantity of products manufactured; and the ability of the Company to successfully evolve its operating system and attract sufficient Macintosh developers. More information on potential factors that could affect the Company's financial results is included from time to time in the Company's public reports filed with the SEC, including the Company's Form 10-K for the 2001 fiscal year, and the Company's Form 10-Q for the quarter ended June 29, 2002 to be filed with the SEC.

It's interesting that Apple beat expectations for the previous 5 quarters before 3rd Quarter 2002! :

http://money.cnn.com/2002/04/17/technology/apple/index.htm

http://news.com.com/2100-1040-885301.html

http://www.foxnews.com/story/0,2933,11577,00.html

http://money.cnn.com/2002/01/16/technology/apple/index.htm

http://news.com.com/2100-1040-816615.html

http://www.foxnews.com/story/0,2933,36721,00.html

http://money.cnn.com/2001/10/17/technology/earns_apple/index.htm

http://news.com.com/2100-1040-274582.html

http://www.foxnews.com/story/0,2933,29814,00.html

http://money.cnn.com/2001/07/17/technology/earns_apple/index.htm

http://news.com.com/2100-1040-270083.html

http://money.cnn.com/2001/04/18/tech...pple/index.htm[/url]

http://news.com.com/2100-1040-256038.html

Apple suffered (lost money) in the first quarter of 2001, but made earnings the previous 3 years:

http://money.cnn.com/2001/01/17/technology/earns_apple/index.htm

http://news.com.com/2100-1040-251105.html

[Asher]

Note that MS beat estimates again for Q2 2002 and Q1 2002.

Dell is also doing well.

I realize the entire market is in a bit of a slump, Cloud9, but I can't find any major computer maker that had their earnings hit by 49% in one quarter like Apple...not to mention the unexpectedly slow demand of their iMacs.

And third quarter 2002? What are you talking about?

[Jon Miller]

Originally posted by Asher
Note that MS beat estimates again for Q2 2002 and Q1 2002.

Dell is also doing well.

I realize the entire market is in a bit of a slump, Cloud9, but I can't find any major computer maker that had their earnings hit by 49% in one quarter like Apple...not to mention the unexpectedly slow demand of their iMacs.

I have to admit it was not unexpected to me

Jon Miller

[Giancarlo]

Apple probably doesn't have enough resources to get its act together in replacing its old G4.

[Mr. Nice Guy]

Originally posted by Asher
I realize the entire market is in a bit of a slump, Cloud9, but I can't find any major computer maker that had their earnings hit by 49% in one quarter like Apple...not to mention the unexpectedly slow demand of their iMacs.

Yes, but 49% is nothing compared to what Apple made the previous 3 years!

And third quarter 2002? What are you talking about?

Apple's fiscal years are different than the calendar years.

[Asher]

Originally posted by Cloud9
Yes, but 49% is nothing compared to what Apple made the previous 3 years!

Yeah, same with the other companies though!
Look at MS, Dell...

[Mr. Nice Guy]

Originally posted by Asher
Yeah, same with the other companies though!
Look at MS, Dell...

Then Apple is keeping up with it's competitors. Just because it's losing market share means nothing. Anything can happen. But if Apple has to, it will find a new and very different market to get into as IBM did; or sell itself to a larger, more powerful company as Netscape did.

[Asher]

How is Apple keeping up with competitors when its main competitors (like MS) beat estimates, while Apple doesn't come near to meeting them...?

How is it keeping up with competitors when its marketshare has shrunk from 5.2 to less than 3% in 5 years?

[DaShi]

Mine's still available.

[Mr. Nice Guy]

Originally posted by Asher
How is Apple keeping up with competitors when its main competitors (like MS) beat estimates, while Apple doesn't come near to meeting them...?

Apple has met it's estimates for most of the quarters in the last 5 years. And can you show me a comparison between Apple and it's biggest competitors on this?

How is it keeping up with competitors when its marketshare has shrunk from 5.2 to less than 3% in 5 years?

Do you have any proof to back this up?

[Mr. Nice Guy]

Originally posted by DaShi
Mine's still available.