Apple to Unveil Direct-Sales Plan and New Line of PCs
Showing renewed signs of life, Apple Computer Inc. is expected to unveil a new lineup of computers today and a plan to sell computers directly to consumers for the first time.
The announcements are scheduled to take place at a splashy news conference in Cupertino, Calif., orchestrated by Steve Jobs, Apple’s co-founder who has been running the company on an interim basis since July.
The changes are the clearest evidence to date that the company has found some sense of direction after a long, rudderless ride, analysts said.
“What it shows is they’re starting to get it, and in a big way,” said James Staten, an analyst at Dataquest who was given a preview of the new machines and direct- sales plan. “It’s not too late for them to hold on to their existing market, and this will do a lot to shore up confidence.”
Apple declined to comment on the event other than to say Jobs will deliver “some milestone news” related “not only to the product line, but to the way the company does business.”
Apple officials said a third announcement is planned that the company has kept under wraps.
Speculation has centered on the company’s plans to build a network computer, a stripped-down machine capable of accessing information and programs over the Internet but costing hundreds of dollars less than a traditional computer.
Apple has not publicly acknowledged plans to build an NC, but sources said models are being tested. Analysts say an NC would be a logical product to offer to schools, a market in which Apple remains strong.
Apple also continues to look for a new chief executive. The company’s board met last week to review a list of candidates. But one member said the search is unfinished and that there will be no announcement today.
Sources close to the board said Jobs could be named chairman but has ruled out taking on the CEO role permanently, even though he flirted with the idea in recent weeks.
The computers to be unveiled today are based on new PowerPC microprocessors that by many measures surpass the performance of the top chips produced for the PC market by Intel Corp., analysts said. One of the new computers is expected to be a laptop that would be the fastest on the market.
Apple will also begin selling computers directly to consumers for the first time, departing from a long tradition of selling exclusively through distributors and retailers. The company has been developing a new Web site where consumers can order computers directly, mimicking a strategy that has been successful for Dell Computer Corp. and Gateway 2000.
Staten said the move toward direct sales is a smart one for Apple because by building and shipping computers only after they have been ordered, the company avoids the inventory problems that have plagued it for years.
“They have been horrible at forecasting for a long time,” Staten said. “The direct model is more effective because you know what customers have bought and there is no inventory.”
The company already handles most of its sales to public schools directly and has moved to do the same with its sales to colleges and universities.
Apple employees say the flurry of activity since Jobs took the helm has energized a work force that had become despondent as losses mounted and executives departed.
