Apple to shake up its product lineup

Posted on Thursday, Jul 26 2007 @ 21:55 CEST by Thomas De Maesschalck
Forbes reports Apple is going to shake up its product lineup:
Apple reported a 73% earnings surge for its latest quarter Wednesday, sending Apple shares up more than 8% to $148.10 in after-hours trading despite disappointing earnings guidance for its current quarter. Not that Apple's guidance is worth much — Apple blew past analyst estimates by a full 20 cents a share for its fiscal third quarter.

The explanation for the weak guidance: higher component costs, back-to-school discounts and a mysterious "product transition" will cause Apple earnings to come in lower than expected. Translation: Apple is going to shake up its product lineup.

The hint comes as strong sales of iPods and Macintosh computers — and lower than expected costs for parts such as flash memory — helped Apple rake in $818 million in net income for the three months ending June 30, or 92 cents per share, up from $472.0 million, or 54 cents per share, for the year-ago period. Apple also reported a 23% jump in sales to $5.41 billion.
What Apple is up to is still unknown. Perhaps new iPods or new notebooks, or maybe even both.

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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