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G4 chip shortages hit Apple profits

G4 chip shortages hit Apple profits

Apple warned last week that shortages of chips for its Power Mac G4 computers will result in profits for its fourth fiscal quarter falling below the previous quarter's mark.

Apple has taken 150,000 orders for its G4 since its launch a month ago, according to Apple Australia's corporate affairs manager, Myrna Van Pelt.

Yet it will only be able to meet half this demand in the short term, with plans to "catch up early next quarter", said Van Pelt.

"We are very disappointed that this quarter's deliveries of G4 processors will be lower than planned. Orders for the Power Mac G4 have been strong and we anticipate ending the September quarter with a substantial order backlog," Fred Anderson, Apple's chief financial officer, said in a statement.

The G4 chip developer, Motorola, put a positive spin on the news, saying last week that its inability to keep up with demand for its G4 processor is "a great endorsement" for the new chip. The product is a complex one to build, and Motorola had to work through "a number of issues and design changes" in a short amount of time, Motorola said in a statement.

Apple expects to report earnings of $US75 to $US85 million for the quarter due to end September 30, which would compare with earnings of $US106 million a year ago, the company said. The fourth quarter results are due out on October 13. For the December quarter, Apple still expects computer shipments and revenues to increase significantly from a year ago, the company said.

Van Pelt attributes the vendor's revival to the success of its iMac and iBook ranges, with Apple announcing at Seybold last month over 140,000 preorders for iBooks, which excluded numbers from the world's largest mobile market, Japan.http://www.apple.com.auhttp://www.mot.com


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