APPLE TO MAKE FEWER COMPUTERS, MORE NEW PRODUCTS
By Adnews Staff
Apple Computer plans to cut expenses by cutting in half the number of computer models it makes, and to raise revenues by venturing into new product areas. This is the strategy for the California-based computer company outlined this week by Gilbert Amelio, the man who took over as president of the money-losing corporation three months ago. To make the company more efficient, Amelio has reorganized Apple into four product groups. Two of them are traditional, the Macintosh computer group and the printer and monitor group. The other two divisions will chart new areas. An "information appliance" unit will work on products priced less than $1,000. It will come up with devices that can be used on the Word Wide Web, such as a new version of the Newton hand-held computer that can make a wireless connection to the Internet. The other new division will be devoted to "alternative platforms". This would include machines such as the server made by Apple that runs IBM's UNIX operating system. Amelio says the reorganization should allow the individual units to work more independently to produce better products. On the marketing front, the company has announced a $20-million(US) program to back up software developers who create programs for Apple machines. Apple is also jointly developing a new notebook computer with the U.S.-based international computer giant IBM Corp. This model will use the Mac operating system and be marketed by both Apple and IBM.