iMac shortage could hit Apple hard

Analysts have warned that Apple could suffer financially because of the short supply of its latest flatpanel iMac.

According to a report from analyst Merrill Lynch, the new iMac is shipping in extremely limited quantities.

Apple expected to ship 200,000 machines over January and February.

But the report estimates that only between 5,000 and 10,000 of the company's 800MHz SuperDrive model were shipped in February, and only 5,000 in January.

The company has also only shipped the high-end 800MHz iMac model so far, but had also expected to ship its mid range CD-RW/DVD model by this time.

The entry level 700MHz CD-RW, which is currently scheduled for a March launch, is now being quoted with a five to seven week wait.

The Merrill Lynch study cites production problems in Taiwan as the root of the shortage, and said that radiation problems with the product could be the reason for manufacturing issues.

The analyst warned that Apple's earnings could be hit by the delay, but still predicted that revenues for the March quarter would be $1.5bn.

Apple shares on Nasdaq yesterday dropped $1.71 to $21.96.

See also:

Apple in a stew over iMac screens

Distributors report unacceptable delays  07 Mar 2002

Apple iMac Flower Power

While we're still hoping for a G4 iMac, this latest machine is no slouch and, at £1199, it's reasonable value when everything is considered.  15 Feb 2002

Imac - Who needs Windows?

The stunning new Imac could open the way for other innovative platforms, says Clive Akass.  12 Feb 2002

Apple woos Windows users at MacWorld

Steve Jobs shows off the new iMac in a blaze of publicity  08 Jan 2002

Apple to peel wraps off flat panel iMac

New device forms core of MacWorld San Francisco event  07 Jan 2002

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