Headline: Apple To Unveil Key Moves, Including Possible Oracle Collaboration
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By Jim Carlton
Staff Reporter of The Wall Street Journal
Apple Computer Inc. on Monday will try to regain its
product-development momentum with a series of moves that may include
collaboration with Oracle Corp. on stripped-down network computers, said
people familiar with the matter.
Steven Jobs, Apple's acting chief executive officer, is expected to
deliver a major statement about the company's directions as well as
unveil new models at the midrange and high end of Apple's computer line.
Network computers, sometimes called NCs, are similar to personal
computers but typically don't have disk drives for storing their own
programs or data files, which are delivered to the devices over the
Internet or corporate data networks. They have been championed by
Oracle, Sun Microsystems Inc. and others to lower the cost of computing,
and reduce companies' dependence on Microsoft Corp.'s software.
Apple is widely known to be developing NCs, with shipments expected
to begin in the first half of next year. Two people close to the company
said Thursday that Mr. Jobs may disclose Monday that Oracle will provide
database-server software needed for Apple's forthcoming product, which
will be called the Macintosh NC. The Apple machines will resemble
simplified Macintosh systems, they said.
Mr. Jobs, reached at his home late Wednesday night, declined comment
except to say that he will have a "meaningful" announcement to make.
Apple and Oracle declined to comment, though an Apple invitation said
the event would discuss "not only changes to the product line, but to
the way the company does business." The latter part of the statement is
believed to refer to a move to begin to sell computers directly over the
World Wide Web, analysts said.
The new Macintosh models will include Apple's first to use a powerful
new chip, called the PowerPC 750. Besides new desktop systems, aimed at
professionals in publishing and other areas, Apple is expected to
deliver its most sophisticated PowerBook laptop to date. Besides speed,
the new chip consumes less power than comparable chips from market
leader Intel Corp., industry executives say.
Apple's event will be held in Cupertino College's Flint Center
Auditorium, near Apple's campus in Cupertino, Calif. Given Mr. Jobs's
penchant for theatrics -- he unveiled the first Macintosh in a now
legendary meeting at the same Flint Center auditorium -- Apple observers
are bracing for a surprise. "He is totally unpredictable," said Tim
Bajarin, an industry consultant in San Jose, Calif.
Apple's share of the PC market has dwindled to just 3.3%, according
to the latest figures from Dataquest Inc., a market-research firm in San
Jose. By making NCs, Mr. Jobs could position the company in a new market
that is just beginning to take off. Oracle Chairman Lawrence Ellison,
now an Apple director, has long said that Apple's brand name and
familiar software would be ideal for use in NCs, particularly for the
education market and homes. "I think (Mr. Jobs) is going to try to make
something more consumer oriented," said one Apple engineer.
During a meeting of the company's board Wednesday, Mr. Jobs
reiterated that he has no interest in taking the CEO job permanently,
people familiar with the matter said. Mr. Jobs intends to remain active
in product development, though would probably not be chairman, they
said.
The CEO search appears to have narrowed to two computer-industry
executives who haven't been identified. A board search committee will
meet with these executives soon, and the search process could be
completed in as little as two weeks, the people familiar with the
situation said.
Separately, Power Computing Corp. disclosed that the Justice
Department has issued a second request for documents in the agency's
review of Apple's proposed purchase of Power's key assets. John Teets,
corporate counsel for the Round Rock, Texas, computer maker, said the
request was very broad. About 10% of the document requests related to
unrelated issues, including Microsoft Corp.'s business practices and
issues associated with Internet software. The Justice Department is
continuing a wide-ranging probe of Microsoft's business practices,
particularly in the market for software used to browse the World Wide
Web.
A Justice Department spokeswoman confirmed the review of the merger,
but wouldn't discuss other details. A spokeswoman for Apple termed the
review routine, and said Apple and Power are cooperating fully. "We are
anticipating that it will move forward in a timely manner," Mr. Teets
said.
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Joann S. Lublin and Don Clark contributed to this article.
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