Apple Posts $200 Million Profit & Returns to Circuit City
Apple Computer posted a $200 million profit for its third fiscal quarter of 2000 on revenues of over $1.8 billion, for an overall revenue gain of 17 percent. Apple sold more than one million machines during the quarter, including more over 450,000 iMacs and 350,000 Power Mac G4 systems, for a 12 percent rise in unit sales from the year-ago quarter. Apple’s profits included $37 million from continued sales of ARM Holdings plc., without which the company’s profit would have been $163 million, an increase of 43 percent from the year-ago quarter. (A year ago, Apple posted a $203 million profit, but $89 million of it was from sales of ARM Holdings.) Apple’s margins were up to 29.8 percent, and international sales accounted for 46 percent of the quarter’s revenues.
Apple also announced Circuit City will once again carry Apple products in nearly 600 retail stores throughout the U.S. Circuit City will feature Apple’s consumer-oriented iMac, iBook, and AirPort product lines, and will also display digital video cameras connected to iMac DV systems, highlighting Apple’s FireWire and iMovie technologies. The move marks Apple’s return to Circuit City; in 1998, Apple pulled out of most retail superstores to focus on CompUSA’s "store within a store" concept for Apple products – and because the large chains did a poor job of promoting, supporting, or even displaying Apple products. It remains to be seen whether Circuit City can do any better this time around.