APPLE EXPO TO OPEN AMID CONCERNS ABOUT FIRM'S FUTURE.Byline: Catalina Ortiz Associated Press Associated Press: see news agency. Associated Press (AP) Cooperative news agency, the oldest and largest in the U.S. and long the largest in the world. Twenty years TWENTY YEARS. The lapse of twenty years raises a presumption of certain facts, and after such a time, the party against whom the presumption has been raised, will be required to prove a negative to establish his rights. 2. after its start in a garage, Apple Computer Inc. enjoys customer loyalty, a strong technological reputation and $11 billion in annual sales. Seems like an enviable spot. But as fans prepare to cheer the company's Macintosh personal computer at the MacWorld Expo that opens today in San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden , others wonder about Apple's future. Apple, forced to cut prices to gain vital market share, expects to lose money for the critical final quarter of 1995. Industry analysts expect layoffs, and some think Chief Executive Officer Michael Spindler Michael Spindler (born 1942 in Germany), nicknamed "the Diesel" for his reputed around-the-clock work habits, was president and CEO of Apple from 1993 to 1996. Having joined Apple in 1980, he rose through the ranks in Apple's European operations as President of Apple Europe has little time left to turn things around. The expected loss - after a series of missteps and executive departures - has heightened perennial speculation about a merger or takeover. "As an independent company, its future certainly seems daunting daunt tr.v. daunt·ed, daunt·ing, daunts To abate the courage of; discourage. See Synonyms at dismay. [Middle English daunten, from Old French danter, from Latin at best," said Robert G. Herwick, president of Herwick Capital Management in San Francisco. "It's not one thing that's wrong - there are many things that are wrong. It's too late." But other industry observers, while agreeing that Apple has serious problems, think it's premature to say its over for the company. They say demand is high and market share is growing, encouraging developers to write new Mac programs. "People who predict Apple is going away are not dealing with the facts," said Mark Hall, editor in chief of MacWEEK magazine. "They're simply saying Apple screws up - and they do - and therefore they've got to go into the dustbin of history. But it's not going to happen." Pieter Hartsook, publisher of the Hartsook Letter in Alameda Alameda (ăləmē`də, –mā`də), city (1990 pop. 76,459), Alameda co., W central Calif., on an island just off the eastern shore of San Francisco Bay; settled 1850, inc. as a city 1884. , Calif., said Apple has a lot going for it. The Macintosh remains superior to the market-dominating PCs using Intel Corp. chips and Microsoft Corp. software, and Apple boasts "brilliant" engineers and loyal customers, he said. "But what they've got to do is fix the machinery that allows them to get these new products out to the customer in an efficient and timely way," he added. Top Apple executives, who have said they are doing just that, were unavailable or did not respond to requests for interviews before MacWorld. Cupertino-based Apple, the nation's No. 2 personal computer maker, has had an up-and-down year. On one hand, the company successfully finished upgrading its entire product line with speedy PowerPC chips. But it has had to fight for market share after losing ground as the "Wintel" PCs have narrowed the Mac's traditional ease-of-use advantage. Market share dropped from 9.4 percent in 1993 to 7.4 percent in the second quarter of last year, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. market researcher Dataquest Inc. of San Jose San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. . Apple, however, bounced back in last year's third quarter to a 9 percent share. Still, analysts say, the overall trend has been down, adding that Apple will have to struggle to keep and expand recent gains even a little. And the extra business has been expensive. Last month Apple warned that despite higher sales it expects to lose money during the October-December quarter because competition in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Japan forced it to slash prices. "It seems it's had a tough time firing on all cylinders. They're either making money and losing share or gaining share and losing money," said Todd Bakar, an analyst with Hambrecht & Quist in San Francisco. Analysts say Apple's trading margins for market share is working but that the company can't do that for more than a couple of quarters. Apple also has had trouble meeting demand. Like other companies, it was hurt by a parts shortage, but it also underestimated the appetite for Power Macs - problems the company insist are temporary. Meanwhile, Microsoft last summer released Windows 95, a key upgrade of its Windows operating system operating system (OS) Software that controls the operation of a computer, directs the input and output of data, keeps track of files, and controls the processing of computer programs. . The much-hyped program, which further eroded e·rode v. e·rod·ed, e·rod·ing, e·rodes v.tr. 1. To wear (something) away by or as if by abrasion: Waves eroded the shore. 2. To eat into; corrode. the Mac's user-friendly edge, gave computer buyers little reason to buy a Mac, many analysts say. But Hall, pointing to Apple's jump in market share, said Apple actually benefited because consumers really compared PCs with Macs - and concluded the Mac is superior. Last year also saw the departure of four top executives, including Chief Financial Officer Joe Graziano, who wanted directors to consider a merger or sale. Although Spindler and the board of directors want to remain independent, many Apple watchers believe the company's falling stock price - from $50 a share in June to the current low $30 range - makes it a likely candidate for a takeover, despite its problems. "I think Apple has gone from being of interest to lions and tigers to being consumed by vultures and hyenas," Herwick said. While other analysts don't think an acquisition is likely - at least not any time soon - they believe Apple must at least reorganize re·or·gan·ize v. re·or·gan·ized, re·or·gan·iz·ing, re·or·gan·iz·es v.tr. To organize again or anew. v.intr. To undergo or effect changes in organization. and will probably spin off or kill some projects. The board, they say, may soon bring in someone to help Spindler run the company. CAPTION(S): PHOTO Photo (Color) Workers set up booths in San Francisco's Moscone Center The Moscone Center is San Francisco, California's largest convention and exhibition complex. The complex consists of two main underground halls underneath Yerba Buena Gardens, Moscone North and Moscone South, as well the three-level Moscone West exhibition hall across 4th Street. for the MacWorld Expo. Associated Press |
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