Apple Unveils Products, iMac Colors
Apple Computer Inc. introduced a slew of products, from a toaster-sized computer to new colored iMacs, as the computer maker looks to boost sales to graphic designers and consumers, two of its key markets.
At the MacWorld trade show in New York, Chief Executive Steve Jobs unveiled a desktop computer the size of an 8-inch cube, drawing applause from the audience. Jobs unveiled four new iMacs priced as low as $799 and PowerMacs that run on two computer chips.
Investors are hoping the refreshed product line will help increase sales and woo buyers back to Apple. The company Tuesday reported fiscal third-quarter sales that missed some forecasts because some products, especially iMacs, were stale. Now, some investors and industry watchers are concerned that Apple may have too many models and won’t be able to make its products stand out.
“The cube is cool and everything, but I am wondering about the differentiation of the products,” said Kelly Higgins, a private investor and Mac user for eight years.
Apple shares fell $4.56 to $52.69 on Nasdaq on Wednesday in the wake of the company’s quarterly results. The stock remains well off its 2000 peak of $75.19 set in March.
Jobs typically uses the gathering of Apple enthusiasts to introduce the computer maker’s latest products. Investors said they were waiting for new iMacs and other improvements after Apple reported fiscal third-quarter profit that lagged so-called whisper numbers.
Jobs, in his keynote speech showed off the white computer cube, which will be available next month. The machine uses a G4 processor and comes in two models, priced at $1,799 and $2,299. Three new displays will be available.
Apple’s new operating system, called OS X, will be available to consumers in 2001, he said. He unveiled a new mouse that uses optical technology and can work on any surface and a keyboard with a button to eject disks. They cost $59 each and will also be shipped standard with the new PowerMac desktop computers.
The iMac models come in new colors: dark blue, emerald, deep red and white. They’re priced at $799, $999, $1,299 and $1,499. The old iMac’s fruity colors will be retired, Jobs said. “They are collectibles now,” he said.
The last time Apple updated its line of brightly colored iMacs was in October 1999. The machine, credited with helping Apple rebound from years of declining market share, is two years old this summer. The company has sold 3.7 million since the introduction.
Apple’s two new PowerMacs are the first to run on two computer chips.
Cupertino, Calif.-based Apple on Tuesday reported profit from operations of $163 million, or 45 cents a share, in the three months ended July 1. That was less than “whisper” numbers as high as 47 cents, though a penny higher than the average estimate from analysts in a First Call/Thomson Financial poll.
Apple’s sales climbed 17% to $1.83 billion in the quarter, less than some analysts expected. Some buyers may have been waiting for the company’s new machines, analysts said.
