Apple has taken a $24 million hit and shed 425 jobs in its IT, operations and admin divisions. The bulk of the expense is cancelled equipment leases, as opposed to cancelled human being leases.
Apple has also announced revenue from its retail venture. The company’s 27 pine-strip floored retail stores (dubbed Gapple) generated revenues of $48 million in the first quarter of fiscal year 2002, with an operating loss of $8 million. The period included the pre-Xmas shopping season, and the company expects the stores to continue to run at a loss throughout 2002. The capital cost of the retail venture have not yet been disclosed.
The company has also warned that margins will be down, citing the new iMac pricing as aggressive.