Can Apple strengthen its core?

 

latest developments

Earnings warnings have dulled Apple Computer's shine, and analysts wonder how the company will get out of the mess it's gotten itself into. "We were simply not prepared to be hit by three major problems simultaneously." - Steve Jobs, Apple CEO

Price, profit cuts loom for Apple With 11 weeks of inventory sitting on dealers' shelves and overall consumer PC buying down 30 percent from last holiday season, Apple must slash prices to clear out the stock, say analysts. Can Apple survive the fall? Stephen Baker, analyst, PC Data Apple slices revenue forecast--again update The company's stock drops to a new 52-week low after its announcement that sales will fall "substantially" below already lowered forecasts. previous coverage Inventory glut foreshadows woes for Apple, Compaq Gateway says consumer PC sales came in lower than expected, but analysts warn things could get just as bad, or worse, for Apple Computer and Compaq Computer. Marketing VP leaves Apple The second major executive departs the company, following a disappointing quarter. Apple shaves price of dual-processor PowerMacs Apple Computer launches another set of rebates, this time slicing up to $500 off the cost of its dual-processor PowerMacs.