Apple Revises Third Quarter Guidance

Apple today announced that it expectsto generate revenues of about US$1.4 billion (£939.7m*) to US$1.45 billion (£973.3m*) in the June quarter, down from previous guidance of about US$1.6 billion (£1.07bn*). The lower than expected revenues are primarily due to soft demand in the consumer and creative markets such as advertising and publishing. Geographically,revenues in Europe and Japan have become particularly weak. The revenueshortfall is expected to be offset significantly by higher than expectedgross margins primarily due to lower costs of some components. Accordingly,the Company has revised its earnings guidance to $0.08 to $0.10 per dilutedshare, compared to previous guidance of $0.11 or slightly higher.

“Like others in our industry, we are experiencing a slowdown in sales thisquarter. As a result, we’re going to miss our revenue projections by around10%, resulting in slightly lower profits”, said Steve Jobs, Apple’s CEO. “We’ve got some amazing new products in development, so we’re excited about the year ahead. As one of the few companies currently making a profit in the PC business, we remain very optimistic about Apple’s prospects for long-term growth”.

Apple will conduct a conference call today for financial analysts and themedia at 2 pm (PDT)/5 pm (EDT). The dial-in number for financialanalysts is + 1(913) 981-5517 and the number for the media is +1 (913)981-5528. A replay will be available beginning at 5:30 pm (PDT)/8:30 pm(EDT) and will be available for one week thereafter. The number for thereplay is +1 (719) 457-0820, code 631127.

Apple will provide live streaming of the conference call utilisingQuickTime, Apple’s standards-based technology for live and on-demand audioand video streaming. The webcast can be accessed at:

and will also be available for replay. The QuickTime player is availablefree for Macintosh and Windows users at https://www.apple.com/ie/quicktime/download/.

Except for the historical information contained herein, the statements inthis press release are forward-looking statements that involve risks anduncertainties. Potential risks and uncertainties include, withoutlimitation, continued competitive pressures in the marketplace; the effectcompetitive and economic factors and the Company’s reaction to them may have on consumer and business buying decisions with respect to the Company’s products; the ability of the Company to make timely delivery of new programmes, products and successful technological innovations to themarketplace; the continued availability of certain components and servicesessential to the Company’s business currently obtained by the Company fromsole or limited sources; possible disruption in commercial activities causedby terrorist activity and armed conflict, such as changes in logistics andsecurity arrangements, and reduced end-user purchases relative toexpectations; risks associated with the Company’s retail initiativeincluding significant investment cost, uncertain consumer acceptance andpotential impact on existing reseller relationships; the effect that theCompany’s dependency on manufacturing and logistics services provided bythird-parties may have on the quality or quantity of products manufactured;and the ability of the Company to successfully evolve its operating systemand attract sufficient Macintosh developers. More information on potentialfactors that could affect the Company’s financial results is included fromtime to time in the Company’s public reports filed with the SEC, includingthe Company’s Form 10-K for the 2001 fiscal year, and the Company’s Form 10-Q for the quarter ended March 30th, 2002.

* Figures based on currency exchange rates at the time of going to press; exchange rates are subject to fluctuation.

 

Press Contacts:
Apple UK and Ireland Public Relations
Email: media.uk@apple.com
Phone: +44 (0)20 8218 1440