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Apple decides to stop making its G4 Cube PC

Apple Computer Inc said it will stop making the Power Mac G4 Cube personal computer after sales of the toaster-sized device fell short of expectations, hurting profit and costing Apple millions of dollars.

The company unveiled the eight-inch-square Cube PC about a year ago at prices ranging from US$1,799 to US$2,299, then later cut the price to as low as US$1,299 to lure buyers. The company said it may reintroduce the machine in the future.

Apple's Cube, a brainchild of CEO Steve Jobs, has been praised for its sleek appearance, though the device was criticized as too expensive for consumers and students and not powerful enough for graphic artists and designers. Apple blamed poor Cube sales for a profit shortfall in the fourth quarter ended in September, which sent its shares tumbling 52 percent in one day.

"Apple likes to experiment with a number of things. Some of those things work, and some don't," said Rob Enderle, an analyst with Giga Information Group Inc.

The Cube was a costly mistake. Apple took a charge of US$115 million for canceling orders of custom-made parts in the quarter ended in December, a move that analysts said was tied to dismal Cube sales.

In the past three quarters, Cube sales accounted for US$212 million, or 4.9 percent, of total revenue of US$4.3 billion, according to Apple figures.

The company had been banking on the Cube to be the next hit in a line of best-selling products such as the curvy, colorful iMac PC and iBook laptop, introduced after Jobs returned to the chief executive position in 1997 and steered Apple back to profitability.

In introducing the Cube last July, Jobs claimed the computer was "possibly the most stunning product we've ever made."

"The G4 Cube is simply the coolest computer ever," Jobs said at the time.

While the declining US economy and slumping demand for PCs contributed to lackluster sales, some users have also complained about defects in the Cube, including cracks in the computer's translucent white case.

Sales of the computer totaled 12,000 units in the quarter ended in March. Through three quarters, Apple has sold 148,000 units.

The company stopped selling the Cube through its Web site today, said spokeswoman Natalie Welch. She declined to say how many units are still available at retail outlets.
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