Make-or-break Apple cuts model range
The new strategy, regarded by many analysts as a make-or-break moment for the once- mighty-but-now hobbled computer company, was announced yesterday by its recently installed chief executive, Gilbert Amelio, at a conference of software developers in California.
In one glimmer of good news, Mr Amelio told the developers that sales of Apple products rose by 40 per cent in April over March. Shares in Apple were unchanged at midday yesterday at $27.25 after Mr Amelio's comments.
Mr Amelio took over at Apple in February after the ousting of his predecessor, Michael Spindler. At the time, the company was in deep crisis, having just announced a quarterly loss of $69m and plans to lay off 1,300 staff. Squeezed by the increasing market domination of the Wintel standard, combining Microsoft's Windows operating system with Intel's chip technology, it had seen its world PC market share drop to 7 per cent.
Since his arrival, Mr Amelio has weathered the announcement of a subsequent quarterly loss of $740m - the worst in the company's history - which included a large inventory write-down, while he has moved to sell a manufacturing plant in Colorado and to eliminate another 1,000 jobs.
So intently anticipated was Mr Amelio's speech that some observers were comparing it to the introduction in 1984 of the first easy-to-use personal computer with the Macintosh operating system. That transformed Apple into America's number one PC manufacturer.
Under Mr Amelio, the company has also signalled its intention to focus intently on developing products to make it easier for consumers to explore and use the Internet.
"I have a vision for this company, I have a dream, if you will - to bring computing to rest of us," Mr Amelio told yesterday's conference, noting that global sales of computers are expected to double by the end of the millennium.
Mr Amelio said he intended to cut the number of models made by Apple by 50 per cent over the next 12 months. Meanwhile, by paring the number of Apple operating systems from six to just one, he said he hopes to focus all of the company's energies on the Mac system.
Through his cost-cutting strategy, Mr Amelio signalled that he expected to be able to make Apple profitable again on a total revenue of $9bn, compared with the $11bn in revenue generated by sales in 1995.
Mr Amelio is also accelerating Apple's slow change of heart in agreeing to allow other manufacturers to clone Apple systems under licensing agreements.
- 1 What if 35 Palestinians had died, and 800 Israelis?
- 2 Disney heiress Abigail disowns her share of family profits in West Bank company
- 3 The secret report that helps Israel hide facts
- 4 'Women should not laugh in public,' says Turkey's Deputy Prime Minister in morality speech
- 5 Ross Burden dead: MasterChef and Ready Steady Cook star dies at age 45 after suffering from cancer
A former custard factory, a Midlands bog and a Leeds cemetery all included in top 50 hidden spots in the UK
Disney heiress Abigail disowns her share of family profits in West Bank company
'Women should not laugh in public,' says Turkey's Deputy Prime Minister in morality speech
Richard Dawkins tweets: 'Date rape is bad, stranger rape is worse'
Ross Burden dead: MasterChef and Ready Steady Cook star dies at age 45 after suffering from cancer
The secret report that helps Israel hide facts
A day in the life of Vladimir Putin: The dictator in his labyrinth
Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
Putin is 'thuggish, dishonest and reckless', says British ambassador to US
A new Russian revolution: The cracks are starting to appear in Putin’s Kremlin power bloc
Were 'Poor Doors' added to mixed developments so wealthy residents don't have to go in alongside social housing tenants?
- < Previous
- Next >
iJobs Money & Business
£350 - £400 per day + competitive: Orgtel: Senior Analyst, ALM Data, Halifax, ...
£500 - £600 per day: Orgtel: Java developer - Banking - London - Up to £600/d...
£400 per day + competitive: Orgtel: Liquidity Reporting - Basel III - LCR - Ba...
Negotiable: Harrington Starr: Client Services Associate (Microsoft Office, Ana...