Steve Jobs: cash is king
The global economic slowdown might soften Apple’s sales in coming months, Apple CEO Steve Jobs said Tuesday.
“We may get buffeted around on the waves a bit,” he predicted during a surprise appearance on Apple’s fourth-quarter earnings conference call, “But we’ll do fine.” That’s because opportunities await companies willing to invest in future products, which he suggested Apple would do with nearly $25 billion dollars in the bank.
During his online cameo, Jobs said he was optimistic about the company’s future, even as credit markets stall and consumer spending slumps.
Apple has a new line up of products with its newly redesigned MacBook notebooks and faster 3G iPhone, he said. Apple’s customers are “more likely to delay than switch,” he said.
Without a doubt, uncertainties exist, he said. Apple saw a slowdown in sales in September as the education market slowed and consumers held off purchases anticipating the new notebooks. In addition, “October has always been a bit of a foggy month for us,” he said. “Sales don’t really take off until November.”
But Apple has the “ability to invest our way through the downturn,” Jobs said. “I think this economic downturn may present some extraordinary opportunities for companies that have cash.”
Apple forecast first-quarter sales between $9 billion and $10 billion, less than the $10.57 billion Wall Street analysts had projected.
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