Apple Computer Cuts Its pc prices Fifth Time in 1993
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Cuts Its PC Prices Fifth Time in 1993 By Bill Richards 08/04/1993 The Wall Street Journal PAGE B5 (Copyright (c) 1993, Dow Jones & Co., Inc.) CUPERTINO, Calif. -- Apple Computer Inc. launched its fifth round of price cuts since April, chopping suggested retail prices on three of its higher-priced personal computers as much as one-third. The reductions are part of a broad price-cutting program the company has implemented to boost U.S. sales. Apple has trimmed suggested retail prices, especially on its more expensive machines, on a monthly basis since the program began in April. Analysts say the cuts were necessary to bring Apple's traditional premium prices into line with less-expensive International Business Machines Corp.compatible PCs using Intel Corp. computer chips and Microsoft Corp. software. An Apple spokeswoman said that the price-cutting strategy has been successful, although she declined to provide specific sales figures since the program began. "Unit shipments of our Macintosh products have picked up significantly since we began implementing our new pricing strategy," Robert Puette, president of Apple USA, said in a statement. Apple's action, effective immediately, included price cuts on its PowerBook Duo line, the Macintosh Centris 650 and the Macintosh Quadra 800 computers. The sharpest cut was on Apple's Centris 650 line, which dropped to $2,139 from $3,189. The spokeswoman said that in addition to spurring sales the price cuts were designed to open a niche for newer, more expensive Centris and Quadra models featuring audio-visual extras that were introduced Monday by Apple. The company had already cut its price for the slow-selling PowerBook Duo machine once in April. Analysts said they expected the company's latest round of price-cutting. "This isn't any surprise," said Wendy Abramowitz of Argus Research Corp., adding that she expects some additional price-cutting by Apple. "Obviously, they're cutting prices because their products aren't selling well," she said. Last month, Apple reported a loss of $188.3 million, or $1.63 a share, for its third quarter ended June 25. The loss was unexpectedly large compared with net income of $131.7 million, or $1.07 a share, the year earlier. Sales rose 7% to $1.86 billion. Yesterday, in national over-the-counter trading, Apple's shares closed at $29, up 50 cents, on volume of 1.6 million shares, down sharply from average daily volume of 2.5 million shares. Directory: microexamples -> articlefiles articlefiles -> For Rent : Atlanta Houses During Games; Huge Supply; Owners Anxious; Reduced! articlefiles -> Free for All : Eager to Boost Traffic, More Internet Firms Give Away Services No-Charge Policy Has Users Flocking to Egreetings; Will Revenue Follow? `Spoiling' Another Industry articlefiles -> Of Mouse and Men : As Web Riches Beckon, Disney Ranks Become a poacher ' s Paradise Media Giant Can't Compete In Giving Stock Options, And Isn't `Freewheeling' Eisner Flames the Techies articlefiles -> Paris air France and Delta articlefiles -> Different Road : States Try New Tactic To Curb Auto Traffic : Cut Highway Spending New Jersey Is in Forefront With an Ambitious Plan For Building Mass Transit Weaning People From Cars articlefiles -> Productivity Improves Among U. S. Auto Makers articlefiles -> Midwesterners Feel Piqued at the Pump Soaring Gas Prices Prompt a debate: Is It Gouging Or the Government? articlefiles -> Hotel Occupancy Rates Hit 4-Year Low Overbuilding Produces Glut, Despite Boom in Bookings articlefiles -> Panama Has Plans For U. S. War Stuff : Turn It Into Hotels There Are Rare Birds Aplenty, And a Lot of Eco-Tourists Are Waiting in the Wings articlefiles -> Hefty Tariffs on Japanese Cars Planned By U. S. in Escalation of Trade Fight Download 4.56 Kb. Share with your friends:
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