Apple Cuts Prices of High-End Macs

Wednesday, January 3rd 2001, 12:00 am

By: News On 6

CUPERTINO, Calif. (AP) â€” Apple Computer Inc. has slashed prices by as much as $1,100 on some Macintosh computers to clear an inventory glut caused by sluggish holiday sales and to make room for new systems expected to be announced next week.

The price cuts that took effect New Year's Day apply to the company's higher-end machines. Last month, the company offered hefty rebates to spur sales during the holiday season.

Apple announced in early December that it expects to lose between $225 million and $250 million in the latest quarter because of sluggish sales. Its earnings report is expected to be released later this month.

As of Dec. 1, the company had 11 1/2 weeks worth of inventory on dealers' shelves, compared with about 3 weeks in June, said analyst Matt Sargent of the market research firm ARS. Apple offered rebates of up to $500 to help jump start sales last month.

``The promotions Apple put in place in December will probably bring that down a little bit, but they have a long way to go,'' Sargent said.

Analysts estimate six to seven weeks of excess inventory in retail channels at the end of December.

``It's much higher than you want to be, and it explains why they dropped prices so dramatically,'' Sargent said.

Apple's 500-megahertz G4 Server is now listed at $3,099, down from $4,199. The 500MHz PowerBook's price dropped to $2,199 from $2,999. And the stylish 450MHz Cube shed $300 for a new list price of $1,499.

Apple is expected to announce newer models next week at the MacWorld Expo in San Francisco. The company refused to comment on the price cuts Tuesday.

Shares of Apple closed unchanged at $14.875 on the Nasdaq Stock Market Tuesday.

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On the Net: Apple Computer Inc.: http://www.apple.com