Down this quarter, but isn't Apple showing $65 million earnings for the fiscal year? I know that for a $5.75 billion year netting $65 million is only 1%, but in a tech-slaughtering year, breaking even is not a bad deal. And who is complaining @ half a billion + in R&D? 10% of GROSS directly into new technologies? Someone explain the bad news to me.
For a company stuck with a millstone around its neck like the CPU speeds of the aging G4, this is perfectly fine financial news. When you are in a holding pattern awaiting new technology (Power4 or G5) and still breaking even, you are doing something right. And don't forget the huge remaining cash reserves.
The numbers are dead on to expectations with the exception of some write-offs. Since this quarter rounds out the fiscal year, it's not unexpected that Apple would take a few hits, but still stay positive for the year.
I'm actually pretty surprised that they hit considering the sorry state of Apple hardware right now.
The real question is this...
Will Apple actually have some good high-margin products out there for Christmas this year? It always seems like Apple misses the holiday boat.