Barry, I hope that you're right.
It is a good idea to keep the note and tack it somewhere. It's just that I can't believe that Apple couldn't come up with a successful strategy to counter Microsoft.
In general, I've had bad experiences working for companies when they begin to internal their problems by cutting costs. I maintain that it is a lot easier to cut costs than it is to create added revenue. Apple is looking to cut both revenue and costs.
Last summer, I really thought that Apple had turned the corner and was ready for Windows 95 and had PowerPC products and ready with a huge backlog of orders, and Copland was almost ready. But it was like someone hit me with a two-by-four later when all of the bad news came out--and it still keeps coming out.
Yesterday, Apple announced that it was closing their facility in Sacramento, and issuing convertible notes $575,000,000 with a striking price of 29.20, redeemable within three years. And they just revised lower the options pricing for their employees. And Markkula has sold almost all of his remaining holdings at $25. And quality issues, and unsold inventory, and a loser image (which is the worst part).
But they have great technology. Some of my engineering colleagues are members of BMUG (Berkley Mac Users Group), and are well connected. It's just amazing that Apple could have so much going for it and still be behind the eight ball.
I'm really not so pessimistic with Novell. Like Apple, Novell has a lot going for them. But their marketing people, like Apple's, can't convey their strategy. And in spite of Netware's technical advantages, Novell's main source of sales revenue, the Value Added Resellers, are abandoning their selling of NetWare in favor of NT.
Why? Again, the subversion of a superior product by an aggressive competitor.
Why can Microsoft execute a marketing strategy so well? Why can't Apple? Why can't Novell? Really, I'm not contrarian by choice. |
