Weakening global sales spurred today to drop its quarterly revenue forecasts about 10 percent below its earlier projections.
Weakening global sales spurred Apple Computer Inc. today to drop its quarterly revenue forecasts about 10 percent below its earlier projections.
"Like others in our industry, we are experiencing a slowdown in sales this quarter," Steve Jobs, Apples chief executive, said in a statement issued after the stock markets closed in New York.
While the computer maker said sales in Europe and Japan were "particularly weak," it also acknowledged suffering from weaker than expected demand in the consumer market, as well as among enterprise customers, in particular those in advertising and publishing.
Apple, based in Cupertino, Calif., now expects to post sales of $1.4 billion to $1.45 billion for the quarter ending in June, down from $1.6 billion it projected in April.
The computer maker lowered its earnings projections to eight to 10 cents a share, a relatively modest dip from the 11 cents a share it had projected previously. While sales have fallen below projections, Apple said its gross profit margins are actually running higher than expected and should help offset the decline in revenues.
Despite Apples shortfall, Jobs said the company remains confident of future earnings growth.
"Weve got some amazing products in development, so were excited about the year ahead," he said in a statement issued today. "As one of the few companies currently making a profit in the PC business, we remain very optimistic about Apples prospects for long-term growth."
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