mac in japan

As the Apple Turns

There certainly hasn't been a shortage of Apple news recently. In what amounts to the computer industry's version of a weekly soap opera, the world has watched Apple go through the throes of a company fighting for survival. Never a dull moment. Several unbelievable events have left most of the industry - and all Mac users - with their jaws agape and their heads spinning.

by Forest Linton
More management woes
It wasn't more than a few weeks after Apple bought NeXT, and Steve Jobs came aboard once again, that the excitement began. First, there was news of top NeXT executives displacing top Apple executives in key positions. But the big story came when Apple CEO Gil Amelio announced that he was stepping down. Aside from initial surprise at the abruptness of the announcement, I must say that I wasn't really surprised.

I mean, it has always been clear that Jobs is not capable of sharing the spotlight with anyone. Bringing him back to the company that he helped found was bound to create friction at the top. And although Jobs continues to say he is not interested in becoming CEO, he has, in fact (as I write this), been named by the Board of Directors as interim CEO. Although the search for a permanent CEO continues, it is clear that Jobs will be closely involved in running Apple for the indefinite future.

In related news - after the smoke finally cleared around the rumors that Larry Ellison or Oracle would make a play for Apple - Ellison did end up with a seat on the board. How this will influence Apple's future direction remains to be seen, but news about the Newton division (see below) may be the first sign. And it is interesting to note that very longtime board member Mike Markkula has stepped down. Markkula, considered one of the pioneers and shaping forces behind Apple, was perhaps one of the big reasons that Jobs and John Sculley (Apple CEO and president, 1983-93) were forced out.

Microsoft makes an investment
In a joint keynote address at the Boston MacWorld in August, Microsoft and Apple shocked the computer industry by announcing that Microsoft will invest $150 million in Apple. At the August 1 Apple stock price, the investment would give Microsoft nearly 10% of the company.

As Microsoft is Apple's largest developer, however, this seems to be a great match, and a win-win scenario for both parties. Internet Explorer (IE) and a Java virtual machine (VM) are two projects that the companies will collaborate on immediately. IE will become the "standard" browser for the Mac OS. (IE3.01 is already bundled with Mac OS 8 - and that includes the Japanese version of Mac OS 8, which should be out by the time you read this.) In addition, Apple and Microsoft have pledged to jointly create a Java VM, which should do a lot to bring to the Mac the coherent Java story it has been missing.

Apple kills clones
Flush after the Microsoft investment, Apple took the money and immediately spent it to end the Power Computing feud once and for all by buying the company. Tensions had been flaring over OS 8 licensing negotiations, and Apple's purchase of a majority of Power Computing signals its clear desire to end the clone business that it started just three years ago.

Instead of growing the overall Mac OS market share, clone vendors ended up cannibalizing Apple's own sales - a sign of poor management of the entire situation. It seems that operating system licenses won't be renewed for anyone else except for Umax. Motorola and IBM are now out of the picture, and the fate of local boy Akia is uncertain.

This latest power play by Jobs surely relegates Apple to niche platform status. However, that might be just what the doctor ordered. If Apple returns to its roots as a specialty player in a few select segments, instead of poorly targeting the mass markets, this may be its best chance for success and profitability. In the short term, however, the clone confusion is confusing the entire industry.

Apple flip-flops on Newton
Apple has had a hard time making up its mind about the Newton PDA (personal digital assistant). It first decided to do nothing, then to spin it off into an independent company. Now”once again decided to keep the Newton within the ranks.

It seems that the success of the eMate 300 has caused Apple to think again. It is possible that we will see the eMate 300 used as a base for a low-cost network computer, ˆ la Larry Ellison. As I have long been saying, Apple needs to invest in Japan, as this is the hottest PDA market in the world.

OS 8 a hit
Amongst all the bad news, there are a couple of bright spots on the Apple. For example, OS 8 has been a big hit, selling over 1.2 million copies in the US in its first three months. As I write this, Japanese consumers are eagerly anticipating the late September launch of the Japanese version. Version 8.0.1 is already being planned and should released by the end of the year.

Internet Explorer 4.0 for Mac
One consequence of the recent investment in Apple by Microsoft is a pledge to develop an integrated version of IE4.0, including the Active Desktop. Microsoft has released a new beta version of Internet Explorer for Macintosh. This represents brand new development work - a sign that at least one developer is still committed to the Macintosh platform. Beta 1 of IE4.0 is available in Japanese (downloadable from the Microsoft website at http://www.microsoft.com/japan/ie/).

When he's not watching the ongoing Apple soap opera, Forest Linton works on the Internet Explorer development team at Microsoft KK. You can reach him at forest@gol.com.

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