IBM’s G5 delays have hindered the rollouts of Power Mac G5 models as well as the new iMac G5 and “underscored the risks of relying on a single supplier but won’t hurt financial results in the short term,” Duncan Martell reports for Reuters. But, Apple won’t take much of a financial hit with their iMac delay.
“Cupertino, California-based Apple will suffer a small financial hit, said Roger Kay, a PC analyst at market research firm IDC, noting that the new iMac will miss out on the crucial back-to-school season. Education sales account for about 25 percent of Apple’s total revenue,” Martell reports. “Using 2003 shipments figures as a proxy, Kay said that one month of lost iMac production amounted to about 32,000 units, or about $32 million in sales, Kay said, which IDC translated to a bottom-line hit of about $260,000, after production costs, taxes and other costs. ‘We looked at that figure and said it’s not that big a deal,’ Kay said. ‘We think that kind of math is what led the company to make the decision they did (to delay the new iMac launch).'”
Full article here.
Of course it won’t. Apple is expecting HIGHER revenues for their 4th quarter. That’s WITHOUT the iMac being in the lineup altogether.
Sure won’t. The education market has been lost anyway.
nobody was buying the imac anyway…
Now that they have finally admitted that it is going to be upgraded they for sure would not be getting any sales even if it was available. And as Heck said all the Mac Users in the know were not buying it in anticipation anyway.
Even though thesy have been gaining marketshare, ‘Reality Check’?
ED….marketshare is important??!??
few imacs went to schools…mostly emacs…
Sales not important….
Heck, last quarter of sales of $2,010,000,000 Apple made a profit of $61,000,000.
So for every dollar of sales Apple made 3 cents profit.
So they make $24 on a $799 eMac.
Crusher,
I told you to stay away from the calculator! You know you can’t add 2+2!
Apple’s profit margin is 27 percent. You were only off 24 percent.
Cruncher’s accountant: If you divide 61,000,000 by 2,010,000,000 then you get 0.03034825… or… for each dollar on sells, 3 cents of net profit… What an accountant.
As they say, accountants are the guys that keeps the score… on the past game.
Is that after expensing options?
Yes, Apple has a gross margin of 27%, but from the 27 cents of every dollar in sales they have additional expenses (administrative expenses for example) which eat up another 24 cents of every dollar. After all is said and done, Apple makes 3 cents on the dollar in NET profit.
“Apple’s profit margin is 27 percent. You were only off 24 percent.”
That’s true. But the margin is the difference between what it costs build the device and how much it is sold for. It does not include such expenses as shipping the device, R&D spent developing the device, paying the salesperson in the Apple Store to sell the device, etc.
One of the reasons Apple has such high margins compared with the rest of the PC industry is that Apple has to pay for all of that themselves, whereas PC makers have most of that paid for by Intel and Microsoft.
The other reason is that the Maczealots are morons who would pay any price to get their toys. And they are even happy about it. That’s the cult! LOL
Memo To “Cruncher�s Accountant”:
You�re fired!!!
Next time sharpen the pencils in the pencil sharpner, not your (r)ear.
Reality Check, not all of us have gone out and bought a PM G5, most of us are using machines that are several years old. I’ve got some windoze machines that are several years old too, I just have to reinstall the os every so often to keep them mildly functional. Never had to do that with a Mac. A LITTLE more money spent up front has saved me a LOT of time and money in the long run. That makes the initial investment a VERY good one.
“The other reason is that the Maczealots are morons who would pay any price to get their toys. And they are even happy about it.”
Unlike PC users who don’t mind spending days tooling with their beige box to save $20. I guess if it’s just a hobby, it’s no big deal. If you actually want to have a life and/or make some money with it, then the extra you pay for a Mac just makes sense. No wonder we’re smiling.
To: Reality Check,
I work in higher ed and I guarantee you that the education market is far from lost. Sales to students are up 40% over last year in our university system. The PBs and iBooks are a very hot item amongst this population. Nearly all of those sales are to switchers, by the way.
As for K-12, it is true that PC drones have taken over the purchasing process but mostly that’s because school boards are forcing platform homogeneity.
-B
Beeblebrox hits the nail on the head. Students are more interested in laptops. iMacs appeal to people at home, older demographics and small business.
Reality Check. Some day you’ll use a Mac and understand why we like using them. Until then keep your virus-invested PC with its outdated OS and lack of ease of use. Your loss not ours!
I own both windows and apple computers.
I do not have any of the problems (virus-invested, lack of ease of use) on the computers running windows xp.
Both windows and apple computers work fine.
It seems that the posters on this website that so vehemently hate windows seem to work in large organizations and see lots of problems with them from having lots of users.
We have 4 windows pcs at home for our children (all networked with dsl connections), plus macs, and do not have any problems with them.
Sorry to disappoint everyone!
I have a PC at home and a Mac at work (higher ed). It was fun to build my own PC and a learning experience to get all of the bits and pieces to run. I get fatigued with rebuilding the system, so our next home computer will be a Mac laptop. We are just waiting for the G5 upgrades. To be fair, we are still running Windows 98, so XP may be more stable. I just can’t get myself to spend the extra $$ on a 3 year old machine.
All the virus updates and patches that IT guys do for the front end PCs that most companies do keeps them in a job. Most IT guys and girls are not too worried about swapping OSes to remove the hassel of virus updates, they do what they get paid to do…why change?
However a lot of it is also down to the respective CTOs and CIOs and other execs of large corporates who are in multi year end user licencing agreements with MS and who have their systems currently set up to be solely PC environments regardless of the amount of viruses that keep bombarding their companies.
As long as the top level execs keep making decisions to stay alignined with MS and its associated product range OSX will remain in the home user, graphic design, digital video and eductaion markets
Never released by Commodore (Amiga), and Atari were systems that let you add as many as 17 cpu’s.(by letting you add them through the board slots)17 ghz sound good to you? Even at 1ghz per cpu that’s better than ANYTHING now from Apple or Ms/Intel. All this talk about “it’s hard to get to 3ghz” or “90 nanometer problems”, doesn’t take into consideration that multi processing is more important. Duel systems? How about quad systems at least, and let the user decide how far they want to expand.
re cww:
Never released by Commodore (Amiga), and Atari were systems that let you add as many as 17 cpu’s.(by letting you add them through the board slots)17 ghz sound good to you? Even at 1ghz per cpu that’s better than ANYTHING now from Apple or Ms/Intel. All this talk about “it’s hard to get to 3ghz” or “90 nanometer problems”, doesn’t take into consideration that multi processing is more important.
Ever thought why it wasn’t released? Also at that time weren’t cpu’s running in the MHz range (so they run cooler for same transisitor size)? However tranistor sizes were MUCH larger.
I’m no engineer, but I’d say the heat issues plaguing the development of the 90 nanometer 3GHz CPU’s from IBM would be an even BIGGER issue for 17 CPU’s based on technology as old as what Atari and Commodore developed.
Not to say it wasn’t amazing technology for it’s time, but to say that these (now essentially defunct) companies succeeded back then at what IBM, AMD and Intel cannot do now seems a little far fetched.
PS – also consider that many of those patents would have now expired (or will be soon), so IBM, AMD and Intel could just use them now with no problem!
2 windoze and an eMac. The windoze machines are hardly ever touched, and its usually for maintenance. eMac is on all the time and used 99% of the time. In our office there are 9 pc’s. We’re not talking large corporations here, a small non-profit. We haven’t had the viruses either, but we do have computers do freaky things on occasion, and for no known reason. People in my office are tired of hearing me say, “I don’t know why it did that, it’s Windoze. Windoze does this sort of stuff.” My first post was written a day after I spent three hours trying to get a computer stable. That was a fun Sunday afternoon.