Apple Computer shares dropped sharply yesterday as Wall Street analysts downgraded the stock in the wake of the US personal computer company's first fiscal quarter losses, reported after the close of trading on Wednesday. Apple was trading at $30 3/8 (£19) in mid session, down 10 per cent from Wednesday's close of $34.

As expected, Apple reported a loss of $69 million (£43 million) for its first fiscal quarter to December 29th. The company said it would cut 1,300 jobs over the next 12 months, reducing its workforce by about 8 per cent. The cuts are smaller than most analysts had expected.

The company confirmed yesterday that the job cuts announced so far were not expected to involve the 1,400 strong workforce at its Cork manufacturing plant. The company has recruited 300 of the 600 extra staff required under its three year expansion plan for Cork announced last December, said a spokesman.

However, the implementation of the other aspects of the plan will be subject to the outcome of the ongoing review announced on Wednesday, he cautioned.