Article View: misc.forsale.computers.mac-specific.misc
Article #62READ IT AND WEEP, MAC USERS OF THE WORLD
From: Michael^Schneider
Date: Sun, 14 Sep 1997 00:00
Date: Sun, 14 Sep 1997 00:00
435 lines
25105 bytes
25105 bytes
If you feel no reason yet to despise Jobs and his *rape* of Apple, read at *least* the first two paragraphs of this, to see what he has cost Mac users. http://www.macworld.com/daily/9.12.tatung.html > Tatung Drops Mac Systems Plans > > Had CHRP systems ready to go for Asia and Europe > > By Galen Gruman > > Motorola Computer Group is not the only company to have publicly given up > on Apple because of the turnabout on licensing. Tatung, a major Taiwanese > electronics and durable goods manufacturer that supplies some systems > components to Apple, has withdrawn its plans to ship CHRP-based systems to > the Asian and European markets. > > Tatung developed its TPC-6600 nearly two years ago based on IBM's Long > Trail design and added the first 75MHz system bus to be found on a desktop > computer (see News, Macworld, November 1997). That system has been ready > for manufacture since spring, awaiting only certification and a Mac OS 8 > agreement from Apple. > > Although Tatung's Asian focus matched one of Apple's stated market targets > for licensees, Apple's refusal to let other companies use CHRP technology > gave Tatung no choice but to withdraw from the Mac market. > > "Tatung has sincerely supported Apple's Mac OS licensing policy, because > Tatung had good OEM relationships with Apple and IBM. Believing that CHRP > would have good prospects, Tatung has made great efforts to become one of > leaders in CHRP development with a Mac OS sublicense contract with IBM," > said J.L. Tsay, general manager of Tatung Systems International. "We are > really disappointed at Apple's decision, because our customers have been > eager to buy the machine. It is our sincere hope that they will not lose > their enthusiasm about Mac," he added. > > Tsay expressed hopes that Apple, which will use CHRP technology in its own > forthcoming systems, might use Tatung's CHRP expertise in engineering and > manufacturing to enhance its market position. See also: http://www2.maccpu.com/maccpu/letter.html for more hideous details: (If you have seen the following elsewhere already, skip down to the prior end, as Moriarty has extended his remarks. BTW, he works for MacCPU, not Newer Technology) > An open letter to Apple's Board of Directors > > There are some 20-million or so Mac users or vendors in the Mac ecosystem. > If Apple disappeared from the face of the earth tomorrow, graphics > professionals would still produce ads on old Macs, the little kiddies > would still be planking away on their Apple IIs in school, developers > would be writing code for somebody, and people would be buying and selling > computers - they just wouldn't be computers with colored Apple logos on > the front. And at the end of the day, I doubt it would make an iota of > difference to anyone. > > Apple is irrelevant now to the vast majority of those in the Mac > ecosystem. Whatever stupid decisions were made last week, Mac users will > still buy computers and resellers will still sell them. No matter if Apple > makes computers or not. And while Steve Jobs may believe people are lining > up to buy computers from him, I don't see any lines forming. I just hear a > lot of people grumbling about getting screwed. > > Steve Jobs has personally driven more Mac users into the Wintel camp in > the past three weeks than all the poor management of Apple Computer > accomplished in the past five years. > > Steve Jobs is fundamentally dishonest. Basic honesty is so important a > part of any business deal, that no vendor or developer, indeed, no > computer buyer, will ever again enter into any deal with Apple without > serious consideration as to how Steve could screw him. > > Steve Jobs is the Fuehrer or Czar, or whatever you want to call him, of > Apple Computer. He is calling all the shots. He doesn't have the guts to > call himself CEO and his actions over the past six weeks have guaranteed > no one in their right mind would even consider taking over now. He says he > is a board member and just a consultant but if he quacks like a duck and > waddles like a duck and has feathers like a duck, he's a duck. Jobs has > made earthshaking decisions for Apple which could easily be very wrong. He > can do that, he owns one share of stock and has absolutely nothing to > lose. > > Let's look at Steve's background as a Computer Fuehrer. > > Jobs and Woz met and determined the idea of making personal computers > might make them some money. They got into bed with Mike Markula and > founded Apple. Woz was the brains behind the computer, Markula had the > business sense, Steve Jobs was the shill. The con man who would drag the > marks into the tent. We all run around acting as if Steve Jobs is some > kind of computer genius. Actually he wasn't behind the success of the Mac, > he was the brains behind the Lisa. He hated the Mac and didn't take over > the project until it became obvious to everyone that the Lisa was a lemon > and the Mac a winner. > > What did he do after being unceremoniously dumped by John Scully? He > founded Next where once again he could try to foist an over-priced, > under-powered nag onto an unsuspecting public. The Next computer proved to > be as popular as the Lisa and the 9600/350 soon will be. Customers aren't > actually all that dumb. > > Was the Power Computing/Apple deal of last Tuesday a good business move? > The answer will surprise you. The Power Computing deal will be the subject > of a Harvard Business School study just as soon as they can type it into a > word processing program. The last time anyone made a deal like this, the > Indians on Manhattan sold the island for some pretty necklaces. > > Steve Kahng sold something totally worthless to Apple Computer for $100 > million dollars. He took his agreement with Apple, which by definition is > without value, and turned it into money. > > From Fred Anderson, CFO of Apple, we learned Apple got a database of > 200,000 names of Power Computing buyers for their $100 million. So they > paid $500 apiece to get the names of people who had already made the > decision with their wallets to not buy Apple computers. Fred says Apple > will, "capture a significant amount of sales that they would have gotten, > going forward." > > Duh. No kidding? > > Think it through for just a few seconds. Let's say 10% of those nice > people get over feeling screwed by Apple and for one reason or another > they just have to have an Apple. So you just added $5000 to the basic cost > of the computer before you start to break even. Actually that doesn't make > sense either, the clone makers were paying Apple for the privilege of > producing machines. You need to add that cost, too. If every single person > determined they just had to have a Mac you have still added 15% to the > cost of production. Can Apple make money by loading every machine with > that sort of overhead? Not in a million years. > > That's like the 8-year-old doing the financial planning for a lemonade > stand. If you just sell one glass of lemonade for $1000, you can make your > allowance for a year. Fred, are you kidding or is one of us crazy? > > Fred, if you think a database of people who made a decision not to buy > Apple computers is such a red hot deal, I've got a Miami telephone book > with five times as many people in it who don't want Apple computers and > I'll give it you for free. Why not buy Dell's database, or even go for the > whole cookie?; Bill Gates would sell his list of Windows users for a > couple of hundred apiece. > > Steve Jobs keeps mumbling about honoring all of Apple's signed licensing > agreements. First of all, his statement isn't true. Apple and the clones > agreed to renegotiate terms to include CHRP and System 8. In any > agreement, intent is an important portion. Each side presumes the other > side will deal in good faith and Apple hasn't. > > When you go into Computer City and pick up a copy of OS 8, are you getting > OS 8 in the box? > > No. > > OS 8 was canceled last year by Ellen Hancock. OS 8 was Copland. Copland > never made it out of #1 Infinite Loop. > > You're getting System 7.7 after it was renamed. And only a liar would say, > or a fool would believe, System 7.7 isn't covered under current, signed, > agreements. The clone makers had all the right in the world to distribute > 7.7 (aka OS8) systems. Apple and Steve Jobs can whine all they want about > how CHRP isn't covered under signed agreements. The real truth is that > Apple is terrified of actually facing real competition, so Apple tore up > the unsigned agreements and violated the terms of certification in the > existing signed agreements. In bad faith. Now Steve Jobs thinks people > actually want to buy computers from him. I don't think so. You can drop a > cow patty into a box and call it rose buds, but it still smells like cow > plop. > > But what about Apple having to subsidize the clones? That sounds like a > real bad deal. > > Apple paid the development costs to design motherboards and then let the > clone makers look at the design. The clones made improvements of their own > and sold computers to a willing public who saw either better machines or > better service or lower cost or whatever. Then the clone makers wrote > checks to Apple for from $50 up to a couple of hundred. So Steve Jobs > wants the Mac ecosystem to believe, that by taking money from the clones > for duplicating a design Apple had already paid for, Apple made a bad > deal. > > Actually the clone makers added more value to the motherboard designs than > Apple did in the first place. In every situation, the clone motherboards > gave more performance than the original Apple design. While Apple offered > 256Kb cache, clone makers gave 512Kb and 1Mb. While Apple offered 50MHz > system bus speeds, Motorola and Power Computing gave 20% faster speeds. If > Apple has any sense, they would have paid the clone makers for their > superior designs rather than whine about how the clones were leeches. > > In his own words, leaked somehow to the world, (saying Apple Confidential > Please do not forward) Jobs says, "Our board is convinced that if Apple > continues this practice the company will never return to profitability, no > matter how well Apple performs. . ." > > So, if Power Computing made and sold a bunch of the G3 powered Power Tower > Pro 275 computers and wrote Apple a check for millions of dollars, that > would be some kind of bad deal? And if Apple actually ever designed a > computer their customers wanted, and could ship it, Apple would lose? "no > matter how well Apple performs"? > > Apple wasn't giving a subsidy to the clones, the clones were giving a > subsidy to Apple. And Apple came out with such brilliant machines as the > 8600 which they announced on February 17th and delivered in June. But did > Power Computing cause that? Did Power Computing cause the 62.5% DOA rate > on Apple 15" monitors reported recently on MacInTouch? > > Losing money in business is a clue something isn't going right. Apple lost > almost 3/4 of a billion a couple of quarters ago. In most businesses, > managers would take time to reflect and often come to the conclusion maybe > they were perhaps doing things wrong. The time to get arrogant is when > money is flowing in, not when it flows out. Apple wasn't producing > machines that made their customers shell out enough money for them to make > money. > > Apple suffers from poor management, over-priced machines and rotten > service. When they stop whining and put their noses to the grindstone, > they may have a chance of survival. But to fix a problem you must first > admit you have a problem and this Apple will not do. Everything wrong is > somebody else's fault. > > MacInTouch has some interesting comments on what is really going on, in > the September 5th page. A reader reports Hewlett Packard is going to > cancel support of printers for the Mac ecosystem in response to a demand > from Steve Jobs for lower prices. Hewlett Packard in effect told Steve > Jobs to stuff Apple computers where the sun rarely shines. In one phone > call Steve Jobs just managed to kill the leading supplier of printers for > Macs. Is this a good move on Jobs part? Well, it makes about as much sense > as him marching into the governor's office, pulling a gun and demanding > lower taxes for Apple because they aren't making any money. And the > response would be about as favorable to the Mac ecosystem. > > Not to worry. Back at the ranch Steve was in the midst of deep serious > talks with his partners in the AIM Alliance, IBM and Motorola. It seems he > has been deeply concerned with the PPC 750 being much faster than Apple's > latest over priced and underpowered offering to its long patient > customers, the 9600/350. Did he tear up the agreement with Motorola to > certify the StarMax Pro 6000 CHRP machine because it was 25% faster than > anything Apple could deliver? He bought off Steve Kahng in what will go > down as the deal of the century. For Steve Kahng. > > Remember MacWorld Boston, just four weeks ago, where Motorola and Power > Computing and Newer Technology all won Best of Show for their brilliant > new systems driven by the fastest CPU around, the G3 or Power PC 750? > Apple told Motorola to forget all about the millions of dollars they spent > for research and development, Apple will not even look at the machine. In > total and absolute violation of every signed agreement in place, now. He > did buy off Power Computing and way down in the small print he mentioned > he didn't want them selling their brilliant and far cheaper machine. > Which, by the way, Apple stockholders just paid all the development costs > for. So two of the three winners of Best of Show will never have a chance > to sell any of the machines. > > But that left Newer Technology. Newer won Best of Show at MacWorld Boston > and Apple didn't. Fortunately there aren't any Apple/Newer agreements for > Apple to sign and then tear up. Apple promised users an upgrade path for > their 7500, 8500 and 9500 computers when they were first released, over > two years ago, and has never felt the market was worth developing. So > Newer developed the aftermarket upgrades and presents no threat to Apple > in the slightest. Newer sells products for the 2 million of so PCI Macs > already delivered. But it just happens Newer's MAXpowr PRO and PRO+ are > far faster than the very best that Apple can ship. > > Steve Jobs asked both IBM and Motorola to delay sending the PPC 750 and > cache parts to Newer Technology, so Newer wouldn't be able to compete with > Apple. Apple's not making money just because Power Computing makes > computers or something. It's so complicated that only Steve Jobs > understands, I think. Or at least that's what he wants us to believe. > > Steve Jobs didn't catch IBM and Motorola at the best of times. Both > companies spent hundreds of millions of dollars in development of the PPC > 750 and the ultra high-speed cache necessary to make the CPU perform. And > Apple had just backed out of agreements three years old. IBM told Steve to > stuff his computers and assured Newer they would get all the cache and CPU > chips they need, as did Motorola. > > Motorola actually took their frustration with Steve Jobs and his giant ego > one step further. The Chairman of Motorola passed around an internal memo > stating they would cease all development work on the PowerPC and would no > longer ship CPUs to Apple as of sometime next year. So if you want a real > good deal on an overpriced and underpowered machine from Steve Jobs, you > had better sign up now. Apple won't be delivering any PPC powered machines > as of next year. Rumor has it that CEO Chris Galvin of Motorola may have > included some comment about where Apple and Steve Jobs could place their > computers. It had something to do with the sun never shining. > > Newer will be delivering their PPC 750 MAXpowr PRO and MAXpowr PRO+ CPU > upgrades just as they have always planned. Somewhere around 3rd week of > September. > > If Apple has a stable operating system they call System 8, which is > actually System 7.7, and a CPU three times faster than anything Intel has > to offer and they can't figure out how to make money except by destroying > their natural allies, maybe Steve Jobs needs to rethink his business > model. At the beginning of August of 1997, Apple and the entire Apple > ecosystem was on the verge of the biggest sales jump in computer history. > Steve Jobs changed that model and now Apple computers are going to be hard > to give away. Maybe it would make more sense for Apple to go back to the > table, hat in hand and figure out how everyone can win, not just Steve > Jobs. > > The brilliant new computers which you can only buy from Steve Jobs as of > next year will be much cheaper. You can save a lot of money by not > including a CPU. But you won't need a CPU in your new machine since you > won't be able to print on any printer from Hewlett Packard. There won't be > any. > > As long as they are lead by Steve Jobs and maintain a longstanding cult of > arrogance, Apple is dead. And it won't make the slightest difference to > anyone in the Mac ecosystem. The Mac ecosystem is a lot more important and > is bigger than the ego of Steve Jobs. > > Steve, it is dead easy for you to bet the farm, you haven't got any money > on the table. But the jobs of millions of Mac lovers depend on the board > waking up as soon as possible and dumping you. You're not the solution, > You're the problem. > > And please don't whine about how people are undercutting your program by > criticizing you. You screwed up, you didn't tell the truth, and you broke > the faith with millions of us. And if you can't take the heat of > competition, one alternative is to get out of the kitchen. > > Here's what the Board of Directors needs to do. > > (1) Send Steve Jobs back to Pixar. He's just a consultant with one share > of stock which he only owns for token reasons. You need a leader with > something more than a token investment in the future of the Macintosh > ecosystem. > > (2) Drop Steve Jobs and Larry Ellison from the board. If they have some > "Insanely Great" idea for network computers, they have the money to > develop the concept themselves. Wish them luck and send them on their way. > Let them find solutions without problems all by themselves. > > (3) Hire a CEO and give him responsibility. Try getting someone with a > vested interest in preservation of a thriving Macintosh ecosystem. Try > getting someone with some sense. > > (4) Sit down with the representatives of the clone makers and sign an > agreement with them in accordance with all the agreements which were made > over the past three years and lately rescinded by Steve Jobs. > > (5) Certify and allow sales of the Motorola and Power Computing machines > using the G3 chip in accordance with signed and current agreements. Do it > now. > > (6) Evaluate Apple and determine why Apple is not making money. Where you > find you have problems, fix them. These may include poor quality control, > a lack of direction, underpowered and obsolete design. Try talking to your > customers to figure out what their needs include. It's clear you have lost > touch with your customer base. > > (7) Tell everyone at Apple to lose their attitude of arrogance at least > until Apple begins to make money again. > > (8) Get down on your hands and knees and pray for the forgiveness of both > your suppliers and your customers. > > You don't have to wake up now. If the actions of Hewlett Packard and > Motorola over the past week haven't at least shaken your stupor, you may > want to consider the ramifications of the Chairman of Adobe Systems when > it occurs to him there may be no future in betting on an Apple Computer > headed by Steve Jobs. What happens to the Mac ecosystem if Adobe announces > they will not develop software for Rhapsody? If it hasn't occurred to him > yet, it will soon. > > If anyone would like to believe this comes from some disgruntled vendor > with a big ax to grind, you're wrong. We sell CPU upgrades and only CPU > upgrades, and the actions of Steve Jobs probably have increased our market > ten-fold in the past three weeks. We are the only industry in the entire > Mac ecosystem guaranteed to thrive. > > The fabulous new machines from Power Computing and Motorola would have > been a welcome and healthy addition to the ecosystem. MacWorld called them > "Best of Show" and they could only expand the Macintosh market. For crying > out loud, how on earth can you lose if you have a stable and powerful > operating system driven by a CPU three times faster than any Intel chip > made? Especially when, in the curtains, you have waiting, a full, native > code operating system, which will take full advantage of the incredible > power of the Power PC CPU. > > Easy. All you have to do is destroy the Mac ecosystem and what Steve Jobs > has pulled over the past three weeks isn't suicide, it's pure, > cold-blooded murder. > > Robert J Moriarty September 7th 1997 > > The opinions expressed are of the writer and MacCPU only. Unless, of > course, you agree. > > opinions � this page has been accessed.. 15570 ..times > > (Added remarks:) > > It has been pointed out that I am risking our company's credibility, with > my blunt and harsh honesty. But there is something wrong going on in > Cupertino. And a lot of people have been saying this for a long time and > it has fallen on deaf ears. > > I have heard people say users should boycott Apple. Some guy said everyone > should break up their OS8 CDs and send them back in pieces. Boy, that > would really teach Apple a lesson. But no business can, or should, be a > popularity contest and I would expect that kind of option to be an > exercise in futility. > > I expect to take an enormous amount of flak, and that's just part of > saying 'follow me' when you charge up a hill. But I got shot at in Vietnam > for two years and I somehow survived. > > There are two kinds of people in the world. There are people who need to > be screamed at, to get them to do what they should have done in the first > place; and those who will do what they should, without being yelled at. > > I'm one of the latter and that's how we have earned our reputation at > MacCPU; one customer at a time. Apple does have, and always has had, a > problem with listening. And while I regret my tone and I'm certain it will > be offensive to many, there are 4 people who need to be smacked up the > side of the head and I could think of no other way. Apple is a great > company and will be a great company in the future, they just need to alter > course. > > Did you see the funeral of Diana? I will never forget the words of her > brother. Harsh but true, and if someone had had the guts to say it while > she was alive, she might still be alive. > > Steve Jobs has the power to bury Apple. But he's going to have to crawl > over my cold, dead body first. Feedback to Robert J Moriarty: bob@maccpu.com
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X-Google-Language: ENGLISH,ASCII X-Google-Thread: 100cd7,96f8627ac1088803,start X-Google-Attributes: gid100cd7,public X-Google-Thread: fa9ea,96f8627ac1088803,start X-Google-Attributes: gidfa9ea,public X-Google-Thread: 102e01,96f8627ac1088803,start X-Google-Attributes: gid102e01,public X-Google-Thread: 1143e8,96f8627ac1088803,start X-Google-Attributes: gid1143e8,public X-Google-Thread: fd775,96f8627ac1088803,start X-Google-Attributes: gidfd775,public X-Google-Thread: 10db40,96f8627ac1088803,start X-Google-Attributes: gid10db40,public X-Google-Thread: 1128e9,96f8627ac1088803,start X-Google-Attributes: gid1128e9,public X-Google-Thread: f8aa2,96f8627ac1088803,start X-Google-Attributes: gidf8aa2,public From: mike1@nospam.visi.com (Michael^Schneider) Subject: READ IT AND WEEP, MAC USERS OF THE WORLD Date: 1997/09/14 Message-ID: <mike1-1409970255460001@13-91.dynamic.visi.com> X-Deja-AN: 272321037 Organization: Ancient Order of Modern Troglodytes NNTP-Posting-Date: 14 Sep 1997 02:51:49 CDT Newsgroups: misc.forsale.computers.mac-specific.misc,comp.sys.mac.games.marketplace,comp.sys.mac.games.strategic,aol.commerce.computers.forsale,biz.marketplace.computers.mac,aol.commerce.computers.wanted,comp.forsale.computers,misc.computer.forsale,misc.forsale.computers.mac-specific.cards.misc,misc.forsale.computers.mac-specific.cards.video,misc.forsale.computers.mac-specific.portables,misc.forsale.computers.mac-specific.software,misc.forsale.computers.mac-specific.systems