Apple Computer Returns to Profitability in 1997

Strategic Insights -

Despite analysts' expectations of a $10 million loss, Apple Computer has made a surprise return to profitability in the last quarter of 1997. The company expects to earn more than $45 million (Pounds 27 million) for the three months to December 31, with revenue stabilizing at about $1.58 billion, roughly the same as the previous quarter. This turnaround is attributed to high demand for Apple's new Power PC computers, according to acting Chief Executive Steven Jobs, who returned to the company last year. Jobs is confident that Apple is coming back, stating, "I can tell you I think for sure Apple is coming back."

Key Takeaways:

  • Apple Computer made a surprise return to profitability in the last quarter of 1997, earning more than $45 million (Pounds 27 million) in the three months to December 31.
  • Revenue stabilized at about $1.58 billion, roughly the same as the previous quarter.
  • High demand for Apple's new Power PC computers was cited as the primary reason for the company's turnaround.
  • Steven Jobs, the acting Chief Executive, is confident that Apple is making a comeback.
  • The company's performance in the quarter is described by Apple as "not an aberration."

Statistics:

  • Apple expects to earn more than $45 million (Pounds 27 million) in the three months to December 31.
  • Revenue is expected to have stabilized at about $1.58 billion.
  • The previous quarter's revenue was also approximately $1.58 billion.
  • Steve Jobs returned as acting Chief Executive last year.
  • The quarter's performance is expected to be sustained, according to Apple.

Sources:

  • The Times, 1998
  • Lawrence Lessig, a law professor at Harvard University, quoted in The Times, 1998