From the Power Computing SEC Filing.
via MacEvangelist
Date: Thu, 3 Jul 97 11:12:18 -0700
From: Guy Kawasaki <gkawasaki@macway.com>
Subject: Fact vs. Friction: Power Computing
Message-ID: <199707031815.LAA26516@scv3.apple.com>
By now you've all probably read how Power Computing is "abandoning"
Macintosh for Wintel. This is the actual text that the reporters may (or
may not) have read to come to this conclusion:
<http://www.sec.gov/Archives/edgar/data/1040478/0000950134-97-005019.txt>
<ftp://ftp.sec.gov/edgar/data/1040478/0000950134-97-005019.txt>
You decide.
More and more, you have to come to this conclusion about journalism these
days: Don't trust anything you read, go to the source and think for
yourself. That's the beauty of the Internet: the source is usually
available.
Guy
________
>The Company intends to expand its leading position in the
Macintosh-compatible market and to promote the growth of the Macintosh
platform by offering new Macintosh-compatible desktop computer systems
that are price/performance leaders. The Company is also planning to
broaden its product portfolio to include Wintel desktop and portable
computer systems, as well as Microsoft Windows NT based server products
that will jointly support Macintosh and Wintel connectivity. The Company
promotes its products through a targeted marketing strategy and an
integrated media approach, which includes marketing its products directly
to customers through its website, placing advertisements in computer
trade magazines (generally in premium spots such as the inside front
cover), direct mailings and Company catalogs. Direct marketing of PCs is
currently growing at a rate of approximately 25% per year, and it is
estimated that 27% of all PCs sold in the United States were distributed
directly in calendar year 1996. The Company sells its products directly
to customers over the Internet through its innovative online store, over
the telephone and to larger accounts through its growing direct field
sales force.
The Company believes that its direct marketing strategy provides
competitive advantages by allowing it to rapidly and efficiently develop,
manufacture and deliver innovative products at competitive prices, to
better understand and respond to customer demand for computer products
and services and to effectively generate customer loyalty and brand name
recognition. While the Company intends to capitalize on these competitive
advantages through its continued direct marketing of Macintosh-compatible
products, the Company is also now developing selected Wintel computer
systems, which it plans to begin manufacturing, marketing and selling
during the first half of fiscal 1998. The Company believes its direct
marketing expertise, combined with its continued use of Wintel industry
standard components, will facilitate its entry into certain Wintel market
segments where graphics and multimedia capabilities are particularly
important. Upon its entrance into the Wintel market, the Company will be
the first company to manufacture and directly market both Macintosh and
Wintel products. As a result, the Company's customers that use both
systems will be able to purchase products from a single source that can
service and support both platforms.< |
