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1992-02-24
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*** COMPUTER INDUSTRY NEWS ***
Compiled from the November, December & January ST Reports
and Z*NET Online Magazines
SONY, APPLE, MOTOROLA COMPUTERS
Sony, Apple and Motorola will link up to develop multi-media personal
computers. The personal computers are part of the next generation of
machines that will allow users to store and retrieve moving images,
voices and data. Representatives of the three companies had no
immediate comment on the report, although IBM, which recently announced
an agreement with Apple, is expected to be a part of this joint
development.
IBM CUTS BACK
IBM Chairman John F. Akers announced further actions to streamline the
company and outlined a plan to reshape IBM into an organization of
increasingly independent businesses and companies. The streamlining
action will primarily involve additional reductions in the company's
worldwide workforce, resulting in a charge to earnings. The primary
focus of the restructuring will be an additional worldwide workforce
reduction of approximately 20,000 employees. This will result in a
charge of about $3 billion against fourth-quarter earnings. The
restructuring actions are expected to result in savings of about $1
billion in 1992 and about $2 billion each year thereafter.
-- IBM Establish's New Companies
As part of its reorganization plans, IBM will start up a new company to
run it's computer printer operations. The firm will also seperate its
disk drive division from its mainframe computer line.
-- Lotus to Cut Workforce 10%
Despite a revenue growth of close to 20% for this last year, Lotus Deve-
lopment Company has announced it will cut its full-time workforce by
almost 10%. Most of the cuts will occur at Lotus' Cambridge, Mass.,
headquarters.
According to Jim Manzi, Lotus' president and chief executive officer,
"We're spending too much to attain the revenue growth we're achieving
and forecasting for next year. These efforts to reduce costs are
necessary and reflect our understanding that the business model that
worked in our first 10 years, may not apply in our next 10 years."
-- Accolade Countersues Sega LTD.
Games developer Accolade Inc. has filed federal claims against Sega
Enterprises Ltd. and its US subsidiary, Sega of America Inc., in
response to a trademark suit brought against it last month by Sega.
As reported earlier, Sega sued Accolade on Nov. 5, accusing it of trade-
mark infringement by developing and distributing software compatible
with the 16-bit Sega Genesis game system.
-- Adaptec Brings Suit
Alleging copyright violations and misappropriation of intellectual pro-
perty and unfair trade practices, Adaptec this week brought a federal
suit against Hard Drives International, Insight Distribution Network
Inc. and Insight Computers.
Adaptec alleges illegally copying of its software and related documen-
tation "in an attempt to sell products, represented as manufactured by
Adaptec, to unsuspecting consumers and system integrators."
The company seeks temporary and permanent injunctive relief as well as
unspecified monetary damages.
-- Commodore International Sells 3,000,000 Amiga's
Commodore International Limited announced that it had sold three million
Amiga's since the product line began in September, 1985.
It took 3 1/2 years to sell the first million, another 1 1/2 years to
sell the second million and only one year to sell the third million.
The Amiga product line is comprised of the Amiga 500 and 500+ for home
computing and the professional Amiga 2000 and 3000 series for video
production desktop publishing and multimedia office productivity.
-- Australia to Loose 10% of its Computer Dealers
According to market researcher Graham Penn of International Data Corp.
(IDC), 10% of all computer dealers in Australia will close their doors
in January, after the Christmas sales peak.
Prices for PCs fell by 50% over the past year in Australia and dealers
have also reduced their own margins in an attempt to hold part of their
market share.
Penn said, "The big companies, with the exception of Apple, are all
suffering badly."
-- Sierra To Move PC Games To Video Game Cartridges
Sierra announced an agreement with International Computer Graphics (ICG)
under which ICG will represent the company's computer software games to
manufacturers of cartridge and hand-held entertainment systems.
The distinction between a computer and a home entertainment system had
already begun to deteriorate with the introduction of the CD-I, or
compact disc interactive, a device that looks like a VCR but is really a
computer and provides interactive home entertainment or education
through connection with a television.
ICG describes itself as a computer software licensing representation
group specializing in the home entertainment field with clients such as
Accolade, Konami, and Electronic Arts.
New Chip Speeds Battery Charging
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
QuickSaver, a rapid charge battery controller chip from Integrated Cir-
cuit Systems, is designed to recharge nickel-cadmium (NiCad) batteries
safely in 20 minutes rather than a couple of hours.
Nickel cadmium batteries are popular not only in portable computers but
in cellular telephone, cordless power tools, and other devices.
According to Integrated Circuit Systems, QuickSaver also enhances NiCad
reliability, prolongs battery life, and ensures a full charge every
time.
Software Publishers Association Involved in Divorce Action
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
After a divorce judge recently ruled that a man give copies of his soft-
ware to his wife, the man contacted SPA for help in convincing the judge
that this would be illegal, immoral, and unethical.
SPA intervened and got the ruling vacated. However, the man is probably
not too happy with the results, as the Judge changed his ruling so that
the man had to turn over the originals of the software to his wife
instead of the illegal copies.
COMPAQ LAUNCHES BATTERY RECYCLING PROGRAM
Compaq has introduced the first PC battery pack recycling program.
Through this program, which begins immediately and is offered free to
all Compaq customers, the company will work with users to help them
safely recycle the rechargeable batteries used in COMPAQ laptop and
notebook PCs. As part of the Recycling Program, depleted batteries are
sent to a recycling facility with a permit from the EPA that is equipped
to safely recycle the waste batteries. Reusable metals from the battery
packs are conserved and sold by the facility to manufacturers for use in
the production of new products. Customers who choose to participate in
the program can call Compaq toll-free at 800-524-9859 and receive a pre-
addressed, postage-paid battery mailer, which is directly forwarded to
the recycling facility. The program is available to users of all Compaq
laptop and notebook PCs, including the Compaq LTE Lite/25 and the Compaq
LTE Lite/20 high-performance, lightweight notebooks.
-- FBI Investigates Computerized Child Pornography
The FBI is investigating a complaint by an America On-Line user who says
he was able to get several versions of child pornographic pictures sent
to his private electronic mailbox after he subscribed to America On-Line
computer service.
Roger Dietz of Fremont, California, claims he subscribed to the America
On-Line computer service to investigate a tip given him by a friend in
Nevada that subscribers could engage in sexual conversations with teen-
age users. He said he received the computerized photographs after
engaging in electronic exchanges with other subscribers.
According to a spokesperson, America On-Line, which has 150,000 subscri-
bers and is based in Vienna, Virgina, is prevented by federal privacy
laws from monitoring communications on the system, so it was unaware of
the illegal traffic but is cooperating fully with the authorities.
America On-Line's spokesperson said, "Clearly, our policy is that E-mail
is a private area and we adhere to the privacy issues surrounding that.
This child porn stuff was taking place in the E-mail. So we were not
aware of it."
The FBI said computer bulletin boards are often used by child porno-
graphers, but for communication purposes only, not for the actual
transmission of the illegal material.
However, the FBI admitted the same privacy laws that make it difficult
for a company to monitor the traffic on its bulletin board will also
make the FBI investigation very difficult.
-- Analysts Says PC Sales to Increase
Despite sluggish holiday retail sales in other areas, Roger Lanctot,
research director at Personal Technology Research of Providence, N.J.
says that "retail sales of personal computers and peripherals are
exploding." He added, "Sales in October were up 50% over last year and
early figures indicate that sales kept pace in November."
Lanctot said low prices and good availability are behind the brisk
sales, but that another factor has been the poor economy of late.
"A personal computer is an extremely practical gift that can be used to
earn extra money or even help hang onto a job," Lanctot said.
-- IBM Develops High-Speed Transistor
IBM has developed a lateral bipolar transister that has triple the speed
of conventional transistors. IBM said the device could be used in high-
performance, low-power, compact computers.
IBM attributed the new transistor's speed to a lateral design, which
decreases capacitance and resistance.
-- IBM Predicts 5-8% Revenue Growth in 1992
A Senior Vice President of IBM said that after the companies 1991 de-
cline, thathe expects the company to post a revenue growth of 5-8% in
1992. However, the same executive noted that Taiwan, Korea and China
will probably see double-digit growth in 1992.
-- Xerox to Cut Workforce by 2,400
Xerox Corp., in an effort to reduce overhead, plans to cut its worldwide
workforce by about 2,400 of it's approximate 101,000 employees before
the middle of 1992. The cuts will be made through normal attrition and
both voluntary and involuntary layoffs.
--Whistleblower BBS Debuts
Government whistleblowers who spot instances of fraud, waste and abuse
have a new way to tattle their tales: a computer bulletin board.
Anyone with a computer and modem can call 202/225-5527 and tell Uncle
Sam how his tax dollars are being squandered. Messages, which can be
posted anonymously or with a name, can be left any day at any hour.
Congressional investigators will read messages daily and check out
complaints.
The Whistleblower Bulletin Board allows investigators to keep in contact
with the whistleblower. "The most important feature of the board is the
ability to receive computer files and messages in an environment that
permits continuing communications, while fully protecting the identity
of those providing information," said Rep. Bob Wise (D-W.Va.).
Even the private group that provides lawyers for government whistle-
blowers who face retribution -- the Government Accountability Project --
approves of the BBS. "I think it's an excellent idea, because most of
the mechanisms within the executive branch are not working well," said
Louis Clark of the GAP.