On February 21, 1986 in California, I met a young enthusiastic Steve Jobs, co-founder of Apple Computer at a Conference for Collegiate Entrepreneurs in California. Steve was being honoured along with 99 other entrepreneurs under 30 with combined 1985 revenues exceeding $4 billion US. Jobs’ earnings alone approached $2 billion US.
The conference’s theme, ironically, was “Catching Your Second Wind” – featuring keynote speeches from successful seasoned entrepreneurs who were “really making it – again” the second time around. It inspired me to become entrepreneurial and taught me two important lessons: “Every crisis creates an opportunity and that If all else fails – give it a second chance.
It’s unfortunate that my friend Mr. Michetti is overly sceptical. You article Apple: Cured or in Remission raises Apple’s blunders and faux-pas made by the previous board of directors over the last few years. Although you’ve praised Jobs and Apple’s feats including the world’s fastest notebooks, the G3, the forthcoming iMac and the profitable last two quarters, you continue to predict Apple’s demise.
Apple has learnt its lessons. You’re a bit uneasy with this but coming purely from the Windows environment I think it’s time we opened the blinds for you to see the light through both sides.
Your make Microsoft’s cash injection sound like an 11th hour action to save the day. Apple has lots of cash – about $1.8 billion US, all available for working capital. The $150 million US is a long term investment in non-voting shares to be held for three years. You failed to mention an undisclosed additional sum for patent cross-licensing agreements with Apple.
You imply that people should buy a PC. It would be a scary world if everyone had the same computer. Why can’t Macs and PC’s live on the same street? Apple is a known for its innovation and heavy investment into R&D.; If we lived in a society where everyone thinks the same, did the same and adhered to one standard, there would be no innovation, no growth, no forward thinking. Choice is good. It’s good to think different.
Technology is feeding the rapid growth in this marketplace. Apple knows that to be successful you have to be both technologically innovative yet maintain a strong business model. Apple will thrive by trying not to be everything to everyone but to simplify its product line, as shown by their PRO,GO Whoa Promotion and continue to reshape selected niche markets.
They’ve brought back Steve Jobs, older and wiser yet with the same old enthusiasm to continue the job where he left off.
Dennis Manning, Director of Corporate Communications Apple Canada Inc. says “In the matter of one year Apple has reinvented itself. We have a new president with the vision and focus to drive the business forward. We have developed a new marketing strategy, overhauled our distribution system, launched Build to Order in certain markets, launched the G3 product line, put in back to back quarterly profits and announced our intention to aggressively re-enter the consumer space. Results are already evident – IDC estimates our worldwide market share has grown by 0.5 per cent” .
Comparing Apple to Dell is almost like comparing Apples to Oranges. Yes, Dell makes clones and cleverly pioneered the Build-to-Order Computers. Apple on the other hand has only started in this area. Not a fair comparison. I am both in the PC and Mac Business and strongly agree that BTO has a negative impact on the dealers both with whom Dell and Apple are competing although Apple hasn’t started in Canada- yet.
Looking at financial figures, why not use the fifth largest Computer Company in the world- Compaq instead of Dell. Last quarter, Compaq’s net income was $16 million IUS on sales of $5.7 billion US compared to Apple’s net income of $55 million US on $1.4 billion US in sales.
You say it’s a fundamental that you have to sell more Macs to new users or existing PC users. You ask how many high-end users are going to switch? These are two totally different markets one mass, one targeted. Depends where they came from. In digital media production Gistics reported that for those who switched to PC, many had employees quit and companies saw revenues and productivity decreased dramatically.
Can’t run PC software ? Look again! Mac’s can run both PC & Mac applications. Try Virtual PC, SoftWindows and Orange PC. The OPC 550 even runs Windows NT on a Mac and seamlessly too. Year 2000 – no problem!!!
Want to talk numbers, let’s look at Apple’s QuickTime. It’s now the standard for multimedia creation. According to Media Metrix, a PC metering company, QuickTime is the largest single application or utility product (outside those bundled with Windows) installed on 23.9 million Windows PCs or 67.6 per cent of the 35.3 million Windows PCs installed as at March 1998. Where would multimedia be today on either platform if it weren’t for Apple’s innovation?
You say software developers nix the small market share ? The mass market for selected applications – maybe, but not for target markets. Yes there may be more PC specific titles but have you counted Mac educational titles lately? According to GISTICS, 72 per cent of multimedia CD-ROM titles are developed on the Mac; 76 per cent of colour publishing, 65 per cent of post-production video editing and 47 per cent of web publishing is Mac based. There are lots of them at the Edmonton Sun. I think these numbers are respectable and significant – don’t you?
I don’t believe that Apple will necessarily achieve a majority market share in but their impact will affect everyone . You say you need proof? Well, here you have it and they’ve caught their second wind.
Greg, if I had the opportunity of having a piece of the world’s biggest pie in the world. I would be forever satisfied with a small slice of the pie. Apple Pie!
Dr. Jack will have to grow old and grey waiting for his opportunity to take the last slice from this Apple.
Reposted from original document from the web archive with a few edits made.
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