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To: J. D. Main who wrote (158659)7/21/2000 1:11:06 AM
From: calgal  Read Replies (1) | Respond to of 176387
 
Hi J.D.: What is Apple going to do with all of the iMacs colored with last years' colors? Leigh

Accessory makers stranded by iMac color change
By Ian Fried
Staff Writer, CNET News.com
July 20, 2000, 11:35 a.m. PT
NEW YORK--Steve Jobs and Mac fans may love the new iMac colors, but there's at least one faction that isn't happy: the third-party manufacturers left wondering what do with all those USB hubs, CD-ROM drives and printer covers featuring last year's shades.

Apple CEO Jobs yesterday unveiled four new iMac colors--indigo, ruby, snow and sage--that will replace the now familiar fruit-themed colors, prompting cheers from many attendees at the Macworld Expo in New York.

But Melody Saffery knew she had a problem: lots of products whose colors had instantly become outdated.

"I was at the keynote speech thinking, 'Oh my god, my product line,'" said Saffery, a product manager for Compton, Calif.-based Belkin Components. Belkin has plenty of hubs, cables and mice in the old iMac flavors.

"We probably keep a 30- to 60-day inventory of products," said Saffery, who said Belkin had no idea the old colors would be replaced entirely.

Still, she said it shouldn't be too big a problem for Belkin, which designed most of the colored items as snap-on attachments, meaning most of the company's inventory can be upgraded relatively easily.

Other manufacturers, however, are stuck with some pretty high-ticket items clad in the newly unfashionable strawberry, grape, lime, tangerine and blueberry.


24 messages
same problme as always Jizmo
Keep It Simple Stupid

Two words: Inventory Control

Good to see some things don't change Kathy

Apple stays fresh

What's so different?



More commentary


Eric Huang's company, New Spec, sells a $349 computer desk that is almost entirely covered in plastic to match the old iMacs.

"I don't think changing the colors so quickly is such a good thing," Huang said.

In his speech, Jobs waxed poetic on the beauty of the new colors, such as the grayish-green Sage.

"It's like graphite with a few drops of Emerald City in it," Jobs said.

But peripheral makers will need a more exact recipe than that to redesign and manufacture the new products, a process that could take three months or more.

"If they are doing new products every six months at Macworld, it makes for a lot of inventory of 'me too' products," said Laura Kirkpatrick, vice president of Pele Enterprises, a New Jersey company that makes speakers and CD cases in iMac colors. "We're a smaller company, and it definitely hurts being a smaller company."

Kirkpatrick said her company will probably try to market its speakers as add-ons for new portable CD player models that have adopted the original iMac palette.

"We pretty much have to find some new markets because Apple buyers are going to want what Apple does," Kirkpatrick said.

Having to work through a double wammy is MacMate, which chose this Macworld show to introduce the iCradle, a wrist support. The $25 unit fits around the original iMac keyboard, now discontinued, and comes in--you guessed it--the original iMac colors.

"We'll match the new keyboard," said an upbeat Steve Allen, president of Edinboro, Pa.-based MacMate. "I'm in the tool-and-die capital of the world."

Less chipper were the folks at Music Industries, a Floral Park, N.Y., company that sells MIDI musical keyboards and desks to match the iMac.

"I've got a ton of inventory I've got to move," groused Christopher Reising, Music Industries' director of new business development.

In addition, there are all those existing iMac users who may want add-ons for their technically current but stylistically obsolete models.

"I'm sure there are still millions of existing iMac users" to sell products to, Saffery said.

Changing colors to drive sales could backfire on Apple if the product cycles make designing matching companion products too expensive, however.

"If they change colors so quickly, probably in the future, we won't design desks just for Apple," Huang said

news.cnet.com



To: J. D. Main who wrote (158659)7/21/2000 1:15:16 AM
From: calgal  Respond to of 176387
 
Dell promises new storage products from acquisition
By Reuters
Special to CNET News.com
July 20, 2000, 1:55 p.m. PT
AUSTIN, Texas--Dell Computer will soon release a "wide array" of new storage products generated from its purchase last year of ConvergeNet Technologies, chief executive Michael Dell said today.

He also defended the $332 million acquisition, the first in Dell's history, against recent criticism from some analysts who said the buyout was a failure.

"We will be delivering a wide array of strong products over the next several quarters," Dell said at the company's annual shareholder meeting. "I don't think the game is over at all."

Critics have recently questioned if and when the acquisition will result in new storage products that could make Dell an industry leader in that market segment.

Dell vice chairman Jim Vanderslice admitted the project was moving slowly but blamed it on problems inherent in a merging of companies.

"With every new acquisition there are certain transitions you go through. We're experiencing those transitions, but they're not anything major. We have probably a 90-day delay in shipment of our product," he said.

Dell spoke at length about the company's push into the Internet infrastructure business, saying it would lead to more diverse product offerings and provide new sources of revenue.

Austin, Texas-based Dell is currently the biggest PC maker in the United States and second in the world to Houston-based rival Compaq Computer.

Dell also said the company was not too inclined to develop a handheld computing device to compete with the Palm Pilots of the world because the PC market was much larger and more profitable. He said Dell would more likely put a wireless communication device into its lightweight laptop computers to give users the same mobility as a handheld.

In response to shareholder question, Dell downplayed the possibility the company would begin paying cash dividends even though its share price has been stagnant the past year.

"In a company of our growth rate," he said, "a dividend would be highly unusual." Dell added that a $1,000 investment in Dell stock 10 years ago would be worth $448,000 today after the company's numerous stock splits.

Vanderslice told Reuters after the meeting that Dell was expecting revenue growth of about 30 percent this year but would not comment on revenue or earnings prospects for the second fiscal quarter. The company had previously said it was comfortable with estimates of 8 percent growth in the quarter, the results of which will be announced on Aug. 10.

Dell earned $1.8 billion, or 68 cents a share, on revenues of $25.2 billion in the fiscal year that ended Jan. 28.

The CEO has been active in the Republican presidential campaign of fellow Texan George W. Bush, which has led to speculation that Dell will join a Bush administration if the Texas governor wins the November election.

Dell smiled broadly when a shareholder asked if he would join Bush in Washington. But his wife, Susan, shouted from the audience that he would not.

"My wife, Susan, said I would not be doing that, and I agree with her," he said.

A recent Forbes magazine list showed Dell is the ninth richest person in the world with a net worth of $17.8 billion.

Story Copyright © 2000 Reuters Limited. All rights reserved

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