Apple Computer, Inc. is headquartered in Cupertino, California is a leader in the PC field for home, business and education markets. Their products include the Macintosh line of desktop and notebook computers, the Mac operating system, the iPod digital music player. The manufacturing facilities are located in Sacramento, California and Cork, Ireland. Apple produces their own keyboards and “Mouse” input devices. Apple’s operating segments include the Americas, Europe, and Japan. They sell their products through online stores, direct sales force, third-party wholesalers and resellers, and its own retail stores. As of September 2003, Apple and its subsidiaries worldwide had 11,000 employees and over 2,500 temporary employees.
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On January 14th, 2004, Apple announced financial results for its fiscal quarter ended December 27th, 2003. For the quarter, Apple posted a net profit of $63 million. These results compare to a net loss of $8 million in the year-ago quarter. Revenue for the quarter reached a four-year high of $2.006 billion, up 36 percent from the year-ago quarter. Gross margin was 26.7 percent, down from 27.6 percent in the year-ago quarter. International sales accounted for 44 percent of the quarter’s revenue. During this quarter, Apple shipped 829,000 Macintosh units during the quarter, up 12% from the year-ago quarter, as well as 733,000 iPod units, up 235% from the year-ago quarter.
Steve Jobs stated that “It was an outstanding quarter for Apple, with double-digit unit and revenue growth and over 730,000 iPods sold. We’re kicking off 2004 with strong momentum, especially for Mac OS X, which is now used by almost 40 percent of our installed base, iPod and the iTunes Music Store, which has a 70 percent share of the legal music download market.”
Fred Anderson, Apple’s CFO commented that “We are very pleased to have exceeded our revenue and profit targets for the first quarter. Continued strong asset management enabled us to increase cash by $225 million to just under $4.8 billion. Looking ahead to the second quarter of fiscal 2004, we expect our third