A Year Ago: Apple shares slump 20 per cent on shock loss

Apple shares slumped 20 per cent yesterday morning on the back of news that the beleaguered Californians will lose between $100 million and $150 million for its first fiscal quarter, due to be reported January 15. Sales for the first quarter are expected to be about a third below those for the first quarter of 1996 when Apple also made a big loss.

CEO and chairman Gilbert Amelio blamed poor sales of the Performa range and shortages of PowerBook notebooks. The surprise figures come on the back of a profitable fourth quarter which many analysts hailed as heralding a turnaround in Apple's fortunes.

Amelio is due to give the keynote address at the opening of the MacWorld Expo in San Francisco today.