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Apple may abandon low-end Mac market

Apple may choose to focus on the high end of its Macintosh computer line and leave the low-end business to the clone makers, according to an unconfirmed report. Analysts predict layoffs of 1,300 to 3,000 employees.

Apple Computer may choose to focus on the high end of its Macintosh computer line and leave the low-end business to the clone makers, according to an unconfirmed report by Reuters Information Service. Power Computing and Umax are the only Mac clone makers currently in operation.

The report indicates the move would be part of a major restructuring of the Cupertino, California-based company initiated in the wake of distinctly lower gross profit margins.

Some analysts predict the company will lay off from 1,300 to 3,000 employees, a move for which some Apple employees have already prepared. At last week's Macworld Expo, a testing engineer for Apple refused to give his name when asked to comment on the company's situation. "No way, sister," he said. "There's layoffs coming."