Apple Computer Inc. Chairman and Chief Executive Gilbert Amelio told shareholders that his newly reorganized management team will begin reviewing expenses today, but he said in an interview with The Times that it is unlikely the company will sell the division that makes its Newton hand-held computer. “It’s not being shopped, and it may never be,” he said. The machine that has enjoyed little success since its introduction in 1993. “I would like to see how the market accepts the new model,” he said of the message pad. He said the Pippin, a game machine and Internet surfer that Apple licenses but does not manufacture, will be phased out. Amelio told shareholders at their annual meeting in Cupertino that an announcement on layoffs and other cutbacks will be made later this month. In a largely symbolic gesture, Amelio said cash bonuses for executives, including himself, will be frozen until the company returns to profitability, expected later this year, although executives will continue to be eligible for potentially lucrative stock options. Amelio projects that Apple, which lost $120 million in its latest quarter ended in December, must reduce overhead by $400 million. “It’s time for Apple to face the fact we can no longer do everything,” he said at the meeting, which occurred on his one-year anniversary as Apple chief. Apple shares lost 12.5 cents to close at $15.25 in Nasdaq trading.
Apple CEO Says Newton Sale Not Likely
Times Staff and Wire Reports