Apple Shines at
January 06, 1998
By Alex Schay (TMF Nexus6)
ALEXANDRIA, VA (Jan. 6, 1998) -- Apple Computer (Nasdaq: AAPL) shined today, gaining $3 1/16 to $18 15/16 after announcing that it expects to see a first quarter profit of $45 million on revenue of $1.58 billion. Q1 EPS expectations were for a loss of $0.07. Apple's first profitable quarter in a year comes on the strength of improved gross margins and various cost-cutting measures. In addition, Apple noted that sales of its G3 Power Macintosh computers crushed expectations. The most successful product launch in the company's history rang up 133,000 units for the quarter, 66% higher than the 80,000 that were expected.
Retailer CompUSA (NYSE: CPU) reported that Apple sales increased to 14% of total revenue, up from 3% a year prior. All of CompUSA's 57 locations will feature an Apple "store within a store" by February. Don't call it a comeback -- Apple been around for years and holds only 3% market share in the $165 billion PC market. The company does have one thing going in its favor (much to the chagrin of Mac votaries), and that is continued software development for the Macintosh platform from Microsoft (Nasdaq: MSFT). Apple interim CEO Steve Jobs noted, "The fact that Microsoft is launching Office 98 on the Macintosh with new technologies not yet available in the version for Windows speaks volumes about the company's commitment to the Macintosh platform."