From Mitch Mandich's Keynote on the Channel - #2
16) 1/2% in ad dollars vs. 2%. Money used for national ad spots.
17) Looking to increase local "call to action" advocacy of AAPL
solutions.
18) Service redesign - Recertification of support centers. New
training materials. Repair objectives: 4 hours on site. Two day
carry-in. Three-day mail order.
19) *Cutting 1100 selling locations* -- to be announced on Monday.
Represents (only) 11 million of sales. Serious and comprehensive
vetting of retailers.
20) Looking to increase software sales through channel. If they
can't sell the hardware, how are they going to sell (your)
software? Looking to enhance abilities of smaller retailers/VARs
to offer a broad range of software solutions. Separate wheat from
chaff.
21) iMac a *phenomenal* SOHO product. Doctors, dentists, lawyers,
real estate, etc.
22) Need to do catchup on software on some of the newest graphics
areas -- 15% where Macs don't offer a compelling software product.
23) AAPL needs to grow beyond 6 billion/grow market share. Looking
for 6-10% market share. Double digit growth. New marketing,
products, software (developers.)
24) Make sure AAPL developers are well represented by AAPL
marketing.
Question/Answer session:
25) Mentioned seminar program to support "Masters in Media" (?)
program.
26) Responding to question on Macromedia acquisition. Said 90% of
revenues from hardware but AAPL is trying position itself as a
cross-platform "solutions" company. QuickTime, ColorSync, etc.
27) Canadian question - Canada has more cable modems and bank cards
and 4x AAPL share per capita than US, so how come no Canadian Apple
Store? No "Think Different" ads. (Said iMac will do very well in
Canada.)
Answer is cost: AAPL still focused on major markets in US, Europe
and Japan. Lots of in-house advocacy to expand Canadian presence.
As profits grow, more will be spent on marketing.
28) Responding, Mandich said AAPL would look to pare back from 7
software catalogue vendors. (Audience supported idea.) Will try to
enhance AAPL software site by MacWorld.
29) Responding, Mandich said AAPL Developer Relations has been cut
back to its lowest level in 10 years and relies on conferences.
Citing cost concerns. If AAPL is profitable, it's the best thing
we can do for you.
30) Responding to a request for the ability to port *current*
(non-Yellow Box) Mac OS apps to NT (some applause), Mandich said
only by writing in Yellow Box, would developers have write once/run
anywhere capability.
31) A Kaiser-Permanente in house tech who couldn't get a copy of a
Service Source CD, and complained of lack of resources AAPL was
committing to developers. (Asked for a *reduction* of total
software titles.)
Mandich reaffirmed AAPL's "prime directive" was to be profitable.
(Applause.)
32) Re: Enterprise software, Mandich said he came from enterprise
background. At a Minneapolis biz conference he hit on Virtual PC,
Unix, NT Client, Oracle, Lotus, a stronger Java.
AAPL's current marketing focus will continue to be consumer and
education but hopes for a "halo" effect as business users "connect
the dots" about what AAPL products can do. Price/performance
advantage. Would love to go after enterprise market, but for now,
it's a guerilla campaign. Strong push for WebObjects.
33) Responding to a game developer who complained that he developed
a hot game on Yellow Box but would likely recode and ship on
Windows; Mandich spoke of making games a priority, of bundling of
select games and the rollout of iMac to increase market share.
soup
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