The Cutting Edge: COMPUTING / TECHNOLOGY / INNOVATION : Apple CEO Implements Broad Changes : Computers: Michael Spindler ends the John Sculley era with the reorganization.
Sweeping away the last vestiges of the John Sculley era, Apple Computer Inc. Chief Executive Michael Spindler is implementing a broad reorganization of the personal computer maker.
Apple said it hopes the restructuring will play to the company’s historical strengths in certain market segments and in product development, where it is known for computers that integrate hardware and software. Observers said the reorganization should reinvigorate the company, which seems to have fallen into the doldrums following a turnaround year.
Spindler, who has run Apple since Sculley’s resignation in June, 1993, has created two giant divisions where there had been four: Apple Research & Development and Apple Marketing & Solutions.
Headed by Apple veteran David Nagel, who headed the Applesoft systems software division, Apple Research & Development has been charged with both hardware and software engineering as well as more futuristic development projects.
Apple Marketing & Solutions will be run by Daniel Eilers, president of Apple’s applications software company, Claris Corp. Marketing & Solutions will be charged with the marketing of all Apple products. The emphasis will be on customizing hardware and software for particular market segments: consumer, education, entertainment and business. The company will likely focus resources on groups where it has a strong following, such as publishing.
A casualty of the reorganization is Ian Diery, who had run Apple’s hardware division. Diery had responsibility for 90% of Apple’s revenue, but under the new structure, he would no longer be in charge of product development. Diery, 44, said he helped Spindler with drawing up the plan, but was not interested in taking on a job with less clout than the one he had previously held. As a result, he is leaving Apple after almost six years with the company.
Under the new structure, manufacturing and product support will continue as separate divisions, and the company said no layoffs are planned. Apple shares fell to their 1995 low Tuesday, losing $1.625 to close at $33.875 on Nasdaq.
Previously, Apple had been organized around product categories. For example, the Newton division developed and marketed Apple’s hand-held computer, a pet project of Sculley’s. Under Spindler’s plan, the Newton will be among the products sold by Marketing & Solutions. However, Apple Research & Development will handle the creation of future Newtons.
“Having both hardware and software development in one organization should allow them to develop products that more accurately target customers,” said Tim Bajarin, vice president of the Santa Clara, Calif.-based consulting firm, Creative Strategies.
Although the PowerPC product introduction last spring went remarkably smoothly--the machines were well-received by customers--since then, Apple has been slow with new models. It has yet to introduce a PowerPC version of its popular PowerBook laptop computers.
