steve@violet.berkeley.edu (Steve Goldfield) (02/01/89)
Yesterday's Wall Street Journal has a very interesting article entitled "Apple Slips as Result of Hoarding Chips." It seems that Apple bought hundreds of millions of dollars of memory chips last summer and is now stuck with much higher-priced chips than are now available. As a result, customers are buying stripped-down models and upgrading them with other people's chips. Even though Apple has lowered its prices, the trend is still continuing. The result: Apple projects that current-quarter profits will drop by as much as 43 percent. Apple has millions of chips for which it paid $38 but which now cost $23. For those who wish more details, I refer you to the article on page A8 of my edition.