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Apple focuses on growth
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July 16, 1998: 12:27 p.m. ET
Financial chief says iMac computer will spark additional profits
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NEW YORK (CNNfn) - Apple Computer Inc.'s financial chief told CNNfn Thursday the computer maker is focused on growth while it narrows its market focus.
On Wednesday, Apple reported fiscal third-quarter operating profit of $75 million, or 50 cents a share, breezing by Wall Street estimates of 33 cents a share.
It was the first time in three years that Apple strung together three consecutive profitable quarters. Fred Anderson, Apple chief financial officer, said investors can expect more of the same in coming quarters.
"The entire management team is shifting our focus to growth," he said. "I would say, watch for growth, particularly in the December quarter this year."
Those results will reflect sales of the forthcoming iMac, Apple's first consumer desktop computer offering in three years.
The iMac will be priced at $1,299 when it hits store shelves Aug. 15. Anderson dismissed concerns over low profit margins that have plagued other computer makers that offer low-cost PCs.
"We expect to have acceptable margins on the iMac," Anderson said. "We're not down in that sub-$1,000 space where people are having difficulty making money."
Part of the reason, Anderson noted, is that the company has taken giant strides in reducing its inventory, an area that has plagued such computer giants as Compaq Computer Corp. (CPQ).
"We drove inventory down dramatically," he said. "We had the lowest inventory at the end of the quarter of any major personal computer company."
Also, Anderson said, Apple is resisting the notion that it needs to focus on additional markets if it expects to continue its streak of profitable quarters.
"In 1994, Apple was the number one market share leader in the consumer market," he said. "We have a huge installed base… and I think they're waiting for another consumer product from Apple."
And, as is customary for Apple executives, Anderson refrained from stating explicitly whether company co-founder and interim Chief Executive Officer Steve Jobs will become the permanent chief. [177K WAV] or [177 AIFF]. 
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