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Apple Businesses

Apple Plans to Grow to $10 Billion 244

mattmcal writes "Fred Anderson, CFO of Apple, this week outlined Apple's strategy for returning to its former self as a $10 billion company. He cited portability, digital lifestyle, and music as the three pimary drivers of this new strategy. Anderson announced last month that he plans to retire June 1 of this year."
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Apple Plans to Grow to $10 Billion

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  • iPod (Score:5, Funny)

    by valkraider ( 611225 ) on Wednesday March 03, 2004 @01:27PM (#8453222) Journal
    $5 billion of that will be from iPod replacement batteries...

    [obDisclaimer: I own a 1stG iPod and a 2ndG iPod - batteries still as good as new. But the headphones......
    And of course, they would get to that $10 billion sooner if they would release a G5 laptop.
    I can personally guarantee them to get $3k closer when they do...]
    • Re:iPod (Score:3, Informative)

      by byolinux ( 535260 )
      I got my third set of headphones today for my 30gb iPod. I mean, cool - they're free and it just takes a quick call to Apple UK Support, but it's a shame.

      Also, my co-workers mock me for having to go to the Apple Support page, because I was saying how great the build quality on Apple kit is.
    • I can personally guarantee them to get $3k closer when they do...

      I'll double that. But I still want to know what they're doing to get into enterprise computing. This is all a futile exercise until they do.
  • by o'bryon ( 235507 ) on Wednesday March 03, 2004 @01:28PM (#8453234) Homepage
    Fred Anderson is the CFO, NOT CTO...
  • by Anonymous Coward on Wednesday March 03, 2004 @01:30PM (#8453262)
    Am I the only one thats a bit skeptical that hes saying this right before retirement?...

    Seems to me like a:
    1.) Talk up Apple, raise share price.
    2.) retire, have all options vest.
    3.) Profit!

    situation to me.
  • by Pr0Hak ( 2504 ) on Wednesday March 03, 2004 @01:30PM (#8453270)
    According to quote.yahoo.com, the current market cap for AAPL is 8.87B, so they're approaching the 9B mark already. I think Apple is well on track with the high profit margins and popularity of the iPod, and all the great things they have been doing with both Mac hardware and MacOS X the last couple of years.

    The excitement that has been surrounding Apple the last couple of years reminds me of the Macintosh during the System 7 or PowerPC transitions.

    Also, it should be noted that Fred Anderson is the C*F*O of Apple, not the CTO
    • by krem81 ( 578167 ) <krem81NO@SPAMyahoo.com> on Wednesday March 03, 2004 @02:12PM (#8453781)
      When people talk in terms like that ($10B company, etc.) they're usually talking about annual revenue, not market cap. Stock price fluctuates a lot - depending on market's mood Apple could have $10B market cap tomorrow. Revenue, however, takes a while to catch up. Apple's revenue for 2003 was $6.7 B, so the company has to grow 50% to get $10B mark.
    • by SewersOfRivendell ( 646620 ) on Wednesday March 03, 2004 @03:14PM (#8454485)
      The excitement that has been surrounding Apple the last couple of years reminds me of the Macintosh during the System 7 or PowerPC transitions.

      I think it's actually been more exciting, in that it's more broadly-based this time, and Apple's critics have much less solid ground to walk on than they did in those periods. No one seriously writes "Apple is dying" articles anymore.

    • Random market caps (Score:5, Informative)

      by Anonymous Coward on Wednesday March 03, 2004 @04:30PM (#8455440)
      > According to quote.yahoo.com, the current market cap for AAPL is 8.87B, so they're approaching the 9B mark already.

      Some random market caps for your amusement, all in 10^9 US$
      - General Electric 329
      - Microsoft: 284
      - Exxon-Mobile: 277
      - Wal-Mart: 261
      - Intel: 189
      - IBM: 166
      - Cisco: 156
      - Coca-Cola: 120
      - Dell: 84
      - HP: 70
      - Time-Warner: 77
      - Disney: 55
      - Ebay: 44
      - Yahoo: 29
      - GM: 27
      - Ford: 26
      - Amazon: 17
      - Sun: 17
      - Apple: 8.9
      - RedHat: 3.2
      - McDonalds: 2.2
      - Gateway: 1.9
      - SCO: 0.17
  • Should be possible (Score:5, Insightful)

    by FePe ( 720693 ) on Wednesday March 03, 2004 @01:33PM (#8453298)
    "Innovation is critical. 'Because we have this modern Unix-based technology in Mac OS X we are able to innovate much faster than Redmond (Microsoft Corp.). Their last release was in 2001, but you'll see us continue to innovate in our OS.' "

    One of Apple's major strengths lies in its design and ease of use, which isn't so much different from Microsoft, but from the majority of the open source world. Apple couples these two design principles, ease of use and configurability, with their OS and also their other products, so their products are very appealing to many customers, especially designers, drawers, and graphic people.

    In the near future, I believe there are going to be more and more of such jobs, and so Apple plays a large role in the IT field. I think the $10 billion limit can be reached.

    • by daviddennis ( 10926 ) <david@amazing.com> on Wednesday March 03, 2004 @01:44PM (#8453444) Homepage
      It's been a very interesting turnaround in the geek/nerd market, to the extent that even CmdrTaco has a MacOS X system. It's too bad this market doesn't seem to be a significant percentage of the whole.

      However, I was just managing a virus outbreak, and finally getting the Symantec Centralized Anti-Virus solution to more or less work in my company, and I can say the value of the time it took to do this would have easily paid the price difference between the PCs we have and the eMacs we could have bought instead. Add outside consultant time and Windows TCO compared to the Mac gets even more absurd.

      Most of our employees use a web-based CRM system I developed for the company that's completely platform-independent, so theoretically there should be no problem at all switching.

      Unfortunately, we have a phone system that forces a Windows lock-in for a variety of reasons, but if it didn't, I would think a switch to Mac for most people wouldn't be that difficult a sell. "Look, you can still get Office, and you'll have 1% of the trouble with viruses and worms. It's a no-brainer!"

      If mid-sized companies like ours could be a bit more open-minded, and if they could avoid buying a phone system like we did (it was a mistake, for a lot of other good reasons), I think more companies would find major advantages in switching.

  • hmm (Score:4, Insightful)

    by pdwestermann ( 687379 ) on Wednesday March 03, 2004 @01:48PM (#8453502) Homepage
    I think it's looking pretty optimistic for apple at this point....the ipod has helped people realize that paying a premium for an excellent piece of industrial design just might be worth it after all, the same mentality mac users have had for a while now.
    • Re:hmm (Score:3, Insightful)

      by oscast ( 653817 )
      While it is true that the iPod and the Macintosh are wonderful works of industrial design. It is hardly the only aspect of either product which puts it ahead of the competition.
    • by zpok ( 604055 )
      "... the ipod has helped people realize that paying a premium for an excellent piece of industrial design just might be worth it after all ..."

      Well yes, and they might decide to buy a HP.

      Don't get me wrong, I'm not trying to put HP in the same league, but HP (arguably) holds the PC equivalent of Apple's position on that mentality: a slightly higher price-point for hopefully better design.

      I'm still amazed at what PC users put up with daily. I mean, if after all this stupid virus shit you're still not prep
  • Mc Donalds... (Score:4, Interesting)

    by Biotech9 ( 704202 ) on Wednesday March 03, 2004 @02:17PM (#8453831) Homepage
    Anderson also hints that there are more alliances in the works (beyond Pepsi, HP and AOL), but that there is nothing to announce yet.

    A previous rumour doing the rounds was a 100 million free song deal with McDonalds, Which you can find here [macrumors.com].
    McDonalds later said there 'Was no deal to announce', but did not actually deny the rumour.
    The revenue and publicity from such a deal would certainly put iTunes further in the lead in the online music store biz.
    But perhaps Coke [cokemusic.com] might not be so happy with that.
  • by amichalo ( 132545 ) on Wednesday March 03, 2004 @02:24PM (#8453909)
    ...The technical trainers.

    During the "good ole days" (1998-2001) when dot-com money was fluid, training centers were handing out MCSE cert training and testing and getting better than $2000 or even $3000 for it. Now, I doubt many people care as they saw what it bought them.

    Enter Apple growing market share. Companies will still need someone to show the secretary how to use the Dock. It isn't that it's difficult to use, it's that she just doesn't have the self confidence that she's doing it right.

    The winner (besides our favorite produce supplier) is the training company that now has a service someone will buy.
    • No PHB who passes up a $400 PC for a $1200 Mac in order to get an "easier to use" computer is going to accept spending a single dime on training. Lack of high administration and training costs will be the main ways he plans on having the Mac pay for itself. If the receptionist is too afraid of the Dock to do her job, she's fired.
  • by csoto ( 220540 ) on Wednesday March 03, 2004 @02:40PM (#8454081)
    This guy has consistently beat the crap out of Apple management over waste. Order fulfillment has never sunk to (pre-Jobs) bad levels. Their products are competitively priced, and they sure are cool. Innovation abounds. None of this would be possible if Apple were still hemorrhaging money.

    Good job, Fred! Good luck with retirement.

  • iTunes for europe? (Score:2, Interesting)

    by Anonymous Coward
    Or at least the UK for the time being. It's been years now and still no iTunes Music Store, it's getting a bit sickening, I can assure you, hearing about how many bloody units have been sold in the US. For us Apple zealots on this side of the pond, time is almost up! Come on Apple, show us what a $10B company can achieve when it really wants to. Surely opening up new markets is the key to improving profits especially when the outlay is practically zero? Not flaming or trolling, just whining.
    • by Pope ( 17780 )
      It all has to do with getting the record companies to buy into the process, nothing to do with Apple not having a technical reason.

      We don't even have it in Canada yet!

      And, no, it certainly hasn't been "YEARS" as you complain, it was launched last April, not even 11 months yet.
    • Stop blaming Apple (Score:2, Insightful)

      by Anonymous Coward
      Apple didn't make the copyright laws that essentially force them to negotiate for separate licensing/distribution rights in every friggin' country they want to set up the iTMS.

      Trust me, if it wasn't for the record companies, iTMS would have been global from day one. Every day they're not able to sell DRM'd AAC somewhere is another day that shit-ass WMA has to entrench itself there.
    • by Anonymous Coward
      It's been years now and still no iTunes Music Store...

      The record labels are the ones dragging their feet on this one. Aparently, citizens in EU (or Canada) cannot be trusted as much as their US counter parts. So if you want iTMS, go bitch at the folks who have the copyrights locked up.
    • by nordicfrost ( 118437 ) on Thursday March 04, 2004 @07:57PM (#8470366)
      I was at an Apple press conference today, where they showed off iLife to the press.

      Arne Odden, a rather nice fella and the CEO of Apple Norway, started the whole thing by saying that he's getting a bit tired of the questions about iTunes Music Store for Europe, since no one knows when the myriad of contracts, recordings (yes, even European artists record and these are going into the store), and the kitchen sink will be ready.

      So he said it with these words:
      It'll ready, when it's ready.

      And that is what we know about the Apple Music store for Europe today. He even mentioned that there's some recorings being prepared from tapes. Studio tapes that is. Interesting...

      On a side note, the presentation falled into the clammy hands of the DemoDevil when the iPod everything was stored on reached its limit (4 kB left!) and crashed the whole shebang right into the stone age. That was the first time I ever saw the Mac equalent of a BSOD, the grey please-reboot-window. Even that was designed beautifully. The Wintel fanatics started to laugh, but made utter fools of them selves afterwards by asking the dumbes, most inane questions I have ever heard from persons supposed to work for the computer press (Think PC Magazine journalists).
  • 10G$ (Score:2, Funny)

    by Smartcowboy ( 679871 )
    If they wait long enough, inflation alone will bring them to their objective :P
  • by SensitiveMale ( 155605 ) on Wednesday March 03, 2004 @10:04PM (#8459258)
    maybe they can lose the 'beleaguered' moniker.

"You must have an IQ of at least half a million." -- Popeye