Apple Computer said yesterday its retail division is on track to turn a profit next year after breaking even in the final quarter of this year, an update that comes as the computer maker seeks new markets to compensate for weaker demand.

In a presentation at the Salomon Smith Barney technology conference in New York, Apple's chief financial officer, Mr Fred Anderson, declined to say, however, whether Apple was on track to meet Wall Street profit estimates for the current quarter.

Mr Anderson said, however, that the lack of a profit warning could be considered good news.

Apple has said it plans to open 25 retail stores this year, a new and potentially profitable outlet to supplement its online and reseller sales.

Mr Anderson also told investors the company planned to use some of its $4.2 billion (€4.7 billion) in cash to support its retail initiative, invest in new technologies and, possibly, continue a stock buyback.