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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.
- ----
-
-