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Apple Retail Segment To Post Loss

12/27/2001 09:18:00 AM Eastern

Cupertino, Calif. - Apple reported in its latest filing with the Securities Exchange Commission that its retail operation will post a loss for 2002 starting with a small loss expected for the first quarter ending Dec. 30.

Apple had originally expected to post a small profit for the 27 locations opened during the second half of 2001, but tough economic times tied to the Sept. 11 terror attacks eroded sales. Apple executives downplayed the poor announcement by stating the stores offer the company a place to showcase their latest products and technology.

Apple did not release its expectations for its online retail business, but did say it will continue to open brick and mortar locations in 2002.

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