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Wednesday, 25 April 2007 11:17

Apple benefits from chip price cuts

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Loss turned to profit


Apple's seasona
l downturn turned into a period of profit thanks to price cuts in memory chips and display screens.

According to a  Bloomberg survey of analysts the only reason that Apple did well in its traditionally slow quarter was because the price of its components dropped.

The company predicted a slowdown in shipments from the holiday quarter, when it sold a record 21.1 million iPod music players and Mac sales sent profit soaring.

However in the same month it saw a surprise cut in the cost of  flash-memory chips, which store songs on iPods, plunged as much as 45 percent. Display prices also fell.

More here.
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