Apple Puts on a Serious Face at Annual Event
Apple Computer is looking like the serious company it has always wanted people to think it was.
Its Apple World Conference began here Thursday morning on the same grand scale that Apple events have assumed in the past. But the feel and the flavor were different this time.
As its dark-suited executives took the rostrum to deliver near-leaden speeches to the 2,500 or so attendees, a bouncy song called “We’ll Build a Future With You” blared out upbeat, Apple-specific lyrics. But it might just as well have been Patti LaBelle’s original “I’ve Got a New Attitude”--the tune was the same and so was the message.
The theme music and the flawless visual media techniques used during the event were reminiscent of previous Apple product introductions. Still, many repeat attendees noticed a difference. An industry analyst remarked that, instead of the event seeming synchronized with the company’s youthful energy, the glitz provided a contrast to the staid, middle-aged image that the speakers presented.
There’s more to it than a somber face. As Apple formally announced Thursday its new Macintosh Plus and LaserWriter Plus machines, it also revealed deals that will allow owners of previous versions of the Apple products to upgrade or trade them in for the newer ones.
At a press conference later, Apple President and Chief Executive John Sculley reiterated his position that the machines had been designed to answer concerns from business users and that the upgrade and trade-in deals were a sign to analysts of Apple’s commitment to its products and current users. Apple also is developing incentive programs for its dealers in further efforts to strengthen fragile relationships with them. By the same token, marketing executives said, the company is considering ways to winnow out those dealers who are lukewarm to Apple’s products. Sculley also said the company’s purpose in adding to its considerable cash reserves--it had $441 million on Dec. 27--and staying out of debt was to make it clear that Apple “has the resources to pursue alternate technology.”
Sculley said the company has no plans to acquire another company at this point, but he would not rule out the possibility.
He said the company soon will channel some of its riches into a venture-capital fund to seed innovative technology projects. Sculley declined to disclose how much money Apple would put in the fund.
Some companies already are buying Apple’s new image and products. The Big Eight accounting firm Arthur Young & Co. will purchase several thousand Macintoshes for its field auditors. Apple also is entering strategic alliances with other high-technology companies, including an agreement with Northern Telecom that allows Macs to be linked together over telephone lines.
Sculley, who joined the Cupertino, Calif.-based computer maker in 1983 from Pepsico, allowed himself a few lighthearted moments at a former rival’s expense. He told reporters that the company had two choices for its Lisa models (the company’s disappointing first entry into the business market). “We could offer the trade-in,” he said, “or reintroduce it as the Lisa Classic.”
Some of the executives’ faces--televised in gigantic proportions as they addressed the audience in The Concourse hall--were new to the audience. Since last year’s big event, Apple has undergone a management reorganization that included the departure of its chairman and co-founder, Steven P. Jobs.
Apple’s other co-founder, Steve Wozniak, left the company last March. But, since Jobs’ departure and the company’s return to profitability, Wozniak has repurchased more than $5 million worth of Apple stock.
Wozniak was not asked to address the opening session of the conference, although his picture--but not Jobs’--was among those of Apple users and workers flashed on the giant screen at the session’s start. Wozniak also joined Alvin Toffler, Alan Kay, John Naisbett and Dr. Sherry Turkle as featured speakers at various conference meetings.
Sculley, who was hired by Jobs, told the press that Apple hoped it could resolve the $10-million suit that it filed against its former chairman.
When Jobs left the company in September, he took five key engineers with him to start a new venture that Apple says involves use of proprietary information to compete with Apple.
Sculley said he hoped “the time will come when Steve Jobs will be as welcome at Apple as Steve Wozniak is.”
Buoyed by the company’s quick recovery from last year’s stinging losses and its ability to produce record profits from depressed sales, Apple’s executive team looked and sounded confident.
“The glamour of the garage metaphor may be behind us,” Sculley said at the close of his speech, “but the halcyon days are still ahead.”
