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Technology Stocks : Apple Inc.
AAPL 271.50+2.0%Nov 21 9:30 AM EST

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To: J R KARY who wrote (7080)12/30/1997 12:33:00 PM
From: Eric Yang  Read Replies (1) of 213173
 
The Newton MessagePads really are marvleous machines. I've yet to find a PC user who wasn't impressed when they play around with my MP 2000. The problem with these Newtons is that eventhough its got some really amazing features built-in, it's competing with things we've already have in our everyday lives: organizers, notepads, calculators, desktop computers...etc. The average consumer is unlikely to be compelled to buy a $900 MP. A 20 cents notepad takes notes just as well as a $900 MP2000. Granted it doesn't do hand-writing recognition or have a cool indiglow backlight but presumably the user can recognized their own handwriting.

If Apple choose to pursue the consumer market with the MessagePad, it must do so with aggressive marketing campaign and lower the price point so that the number of MP users reaches critical mass. I would estimate that 90% of the consumers have no idea what a Newton MessagePad is. Of the 10% that do, few have actually seen one in action or know exactly how powerful it is.

Newtons thrive in specialized 'verticle' markets: hospitals (for patient info, drug database etc), schools (eMate) where its role is evident and well defined. According to MacOSRumor Apple may go after the business market with the rumored bMate. I remember seeing a show on TLC where they said that the US military is trying to modernize the 'dog tags' used to identify each soldier. The tags have memory chips embedded in them. The prototype machine used to read the information off these tags looks to me like the MessagePad 100. Go mMate!

Several people have asked me off this board about the possibility of Apple using PPC in Newtons. I think the chance of that happening is nil. The most energy effcient version of PowerPC runs at about 5-6 watts. Thats over an order of magnitude higher than the StrongARM chips. Futhermore, I don't think Apple would want to waste resources porting the Newton OS.

Background on Processors used in Newton

ARM 610 20MHz used in MessagePad 100,120,130 series.
ARM 710a 25MHz used in eMate 300 series.
StrongARM SA110 161.9MHz used in MP2000, MP 2100 series.

SA110 is about 6-10 times more powerful then the earlier ARM 610 but actually uses less power. The StrongARM chip is designed by Advanced RISC Machines, a business partnership between Acorn Computer Group, Apple Computer and VLSI Technology. So far ARM partnership has been doing quite well financially. The chips were produced by DEC but the recent deal between Intel and DEC on the Alpha passed the production of ARM chips to Intel. Advanced RISC Machines still owns the right to the ARM design.

Info on Apple's role in the ARM partnership can be found at
arm.com

Eric
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