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Newsbytes - Internationa…ews 1983 May to 1994 June
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Newsbytes - International Computing Industry News 1994 Edition - May 1983 - June 1994 - Wayzata Technologies (5045) (1994).iso
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1984
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1991-10-04
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[***][7/24/84][***]
APPLE PEELS:
As predicted by Apple President John Scully, third quarter profits ending
June 29 plummeted 24 percent from a year earlier. The bad news is
attributed to Apple's intense advertising and marketing of the Mac and the
//c. The company has budgeted $100 million on advertising this year.
Scully predicts Apple will recover its profits by September based on the
overwhelming demand for Macs, Apples and even the re-designed Lisa (which
looks more like a Mac every day). Dealers told the WSJ "Lisas are sold out."
NOTE: GOOD LETTER ON THE APPLEBUS--SEE 'MAILBAG'
NOTE: LIST OF NEW APPLE SOFTWARE AND HARDWARE PRODUCTS AT NCC--SEE "NCC-
APPLE.PRODUCTS"--Newsbytes file #7.
----
[***][7/24/84][***]
KAYPRO/MITSUI MIFF:
Despite vigorous arguments from both companies that Kaypro's agreement to
market Mitsui's M-1 is not dead, my sources say the two sides haven't talked in
three weeks, no money or agreements to seal the deal have changed hands.
Reporter Dan Berger of the San Diego Union says the reason is that the M-1
"is a non-functioning machine unless it's on the market tomorrow." He
told me at least six other computer makers have better, lower priced machines
ready for unveiling at Comdex this Fall. Berger say his sources report
Kaypro has a lap-sized portable created by an independent designer nearly
ready for release. This may explain why Kaypro and Mitsui's relationship
has grown colder over the last several months. Mitsui has stated its
lap-sized portable won't be delivered to Kaypro until October and trouble
with the software has caused additional delays. Suggests Berger "I may be
wrong, but only if Mitsui has a second-generation lap-sized portable to
show to Kaypro--an M-2." My sources say he's not wrong at all.
----
[***][7/24/84][***]
RING OUT THE OLD:
You have to hand it to Jack Tramiel. He's not doing any talking which fuels
the fires of speculation which makes ample press. Here's the latest: The
San Jose Mercury News reports a K-Mart executive as saying Tramiel will
slash prices on all current Atari products by as much as 30% within the next
three weeks--a move which if true, could ignite another price war. Fred
Shrimp, senior buyer of electronics for K-Mart also reports Tramiel will
market two under-$800 32-bit machines which will compete with Apple's
MacIntosh. Meanwhile the four former Commodore engineers who are being
sued by Commodore for alledgedly taking trade secrets with them say
Commodore can search them. The four arrived at Atari this week to join
Tramiel. Also, Bruce Entin, for 18 months the "voice" of Atari, has been
given his walking papers. He plans to take a few week's rest before
finding another job.
----
[***][7/24/84][***]
DRIVEN BACK:
Three disk drive makers almost simultaneously announced staff cutbacks this
week. Leading the pack was Seagate Technologies of Scotts Valley, Ca.
which plans to slash 20% of its staff--700 people--in a cost-cutting
move. Seagate officers refused to make a statement but have suggested
that a transfer of some operations to the Far East is planned. Said
Human Resources VP Bob Biddinger to the San Francisco Chronicle six
months ago--"Over there for $3 a day and a bowl of soup, people will
work their butts off 12 hours a day." ...
Meanwhile in nearby San Jose, Data Systems Design Inc., maker of
disk memory systems for Digital Equipment, cut 10-percent of its
production staff--30 people. And Shugart Corp. of Sunnyvale canned
20 people in its marketing department. Shugart is owned by Xerox.
Says James McCarthy, Shugart spokesman, "We're doing whatever
necessary" to return to profitability. Shugart lost $50
million last year but claims its main product--the bulky 5 1/4 inch
Winchester drives--are more in demand these days. Hmmmm....
----
[***][7/24/84][***]
QUOTE OF THE WEEK:
InfoWorld's quote deserves repeating....said Fred Hoar, VP of Communications
for Gavilan Computer in San Jose, "The microcomputer industry is entering a new
chapter--Chapter 11."
In other Gavilan news, Manny Fernandez has been ousted
as President of the company following "pressure from investors." He's been
replaced by C.W. "Woody" Rea, a venture capitalist. Finally shipping its
portable computers, Gavilan had been missing shipping schedules since
late last year. The cash flow situation has reportedly grown worse at the
company; many creditors are demanding cash on delivery in dealing with
Gavilan.
----
[***][7/24/84][***]
WITH THAT IN MIND...
Mindset Corp. of Sunnyvale, Ca., maker of the first computer to join the New
York Museum of Modern Art's permanent industrial collection, has laid off
45 workers--one third of the manufacturing staff. "Our computers didn't
sell as fast as expected," says Roger Badertscher, President of Mindset.
85 workers remain in the facility.
----
[***][7/24/84][***]
NO SURPRISE...
The American Electronics Association issued a study this week which shows
that the turnover rate for employees in the hi-tech industries is at an
all-time high in the Silicon Valley area of California. 1983 produced
a 27.8 turnover rate; 1982 saw 24 percent of employees switch jobs during
the year. It means that if the figures carry over this year one out
of four employed in electronics jobs will lose or change jobs before
Christmas.
----
[***][7/24/84][***]
EUROPE/1984:
Non-disclosure agreements will be required by each and every person attending
a Digital Equipment conference in September. Digital's required pledge of
secrecy have been sent along with invitations to the event in Amsterdam,
Netherlands. Gerard Anneveldt, Digital's marketing communications manager
in the Netherlands told AP the secrecy was necessary "so they don't abuse
information given at the conference." The official explanation is that
proprietary information might get into the hands of Communist countries.
No Digital equipment has been documented as crossing the border but, added
Anneveldt, in January a Digital VAX computer was intercepted in Sweden
on its way to Moscow.
----
[***][7/24/84][***]
CHIPS CASHED IN:
The demand for integrated circuits has apparently caught up with supply.
At least that explains why the industry's book-to-bill ratio is finally
getting smaller. June's was one shipped for every 1.12 requested. That's
in contrast to May's 1 to 1.18. For the record, nobody's worried about
the decline. The semiconductor industries seem to be in great shape well
through at least 1989.
----
[***][7/24/84][***]
IN BRIEF--
HEWLETT PACKARD has named Dean Morton its chief operating officer in light
of what's called a major reorganization. The three main parts of HP will
be the medical group, the computer group and the electronic instruments
group.
-
HEWLETT PACKARD is also mulling over the fate of the original garage where in
1939, David Packard and William Hewlett perfected the first oscillator in Palo
Alto. The garage is part of property now owned by an investment corporation
but the historic landmark may be bought-back by the company soon.
-
MULTIMATE INTERNATIONAL CORP. of East Hartford, Conn. has brought on a "big
gun" from R. J. Reynolds's Heublein subsidiary to run its marketing department.
Robert Weiss brought in $800 million in sales for Reynold's Smirnoff and
Popov vodkas...Multimate wants him to do the same for its software.
-
COLECO has tapped former Apple II and IIe production chief Robert Baker
to run its Adam assembly line. Baker inherits the problem-ridden Adam as
a Coleco spokeswoman claims the company is "firmly committed to (its)
consumer electronics program."
-
ASHTON TATE has been heavily promoting its "Framework" software with high-
tekky TV ads...but where is it? As it turns out "Framework" won't be in
stores until next week, at soonest, because of technical problems with its
telecommunication feature. Framework will retail for (hold your breath)
$695. (Come on, how much of that is to pay for those TV ads?
-
SKU, a software company purchased four months ago by the giant milk
conglomerate McKesson, is headed for the auction block. The Berkeley-based
SKU was heavily into educational and home software before it was purchased;
in four months sales have trickled to a near halt and the staff is down
to 30 people from a July 12 high of 80. McKesson reportedly is seeking to
sell the company; its venture into computers has apparently failed.
-
MIDAS VALLEY..the television show that was supposed to be a Silicon Valley
version of "Dallas", produced by ABC, has been dropped from the Fall
schedule. The original pilot cost $2 1/2 million to make. The soonest
it might appear is January...but only if ABC executives reverse their
current belief that the series, despite its name, would not make money......
-
[***][7/24/84][***]
KAYPRO FOOTNOTE:
A computer program designer says his new product "RealType" which runs on
CP/M computers looks an awful lot like Kaypro's new "Type-It" program. In
fact, says Michael Dortch, a former Kaypro marketing consultant, he proposed
the idea to David Kay of Kaypro last April. Although Dortch never accuses
the Kays of stealing his idea, his remarks suggest that's the case. He's
generous though, saying the two products "couldn't have happened at a better
time..they validate the premise of typing programs without directly competing."
Dortch's program sells for $14.95 from Real-Life Systems of Berkeley.
----