To: Jan Crawley who wrote (36660 ) 2/27/1998 8:50:00 PM From: Glenn D. Rudolph Respond to of 61433
Final curtain for Newton OS, MessagePad and eMate 300 By David Morgenstern (david_morgenstern@macweek.com) The other shoe finally dropped for Apple's Newton operation. The company today said it has halted further development of the Newton OS and hardware based on the operating system: the MessagePad 2100 and eMate 300. Instead, Apple executives said the company will place its efforts on extending the Mac operating system and offer new lines of Mac-based mobile products in 1999. According to a statement by Apple interim CEO Steve Jobs, the forthcoming devices will be "affordable." Growing the Mac market and leveraging the base of Mac applications was given as the primary reason for dropping the alternate OS. "We need to focus all of our future efforts on helping to drive the Mac OS business," said Phil Schiller, Apple vice president of product marketing. "We are going to absolutely evangelize and help to generate new classes of applications in the future to take advantage of this space." Analysts said Apple's new plan is comparable to Microsoft Corp.'s Windows CE strategy of offering a variant of its desktop OS instead of a completely different technology. "We're not interested in splitting the Mac code base in any significant way," Schiller said, contrasting Apple's plans with Windows CE. "We have scalability in the Mac OS today. Our competitors don't have quite the breadth of scalability -- they offer different operating systems. We don't want to diverge the Mac OS." About half the current Newton team -- about 30 engineers -- has been relocated into the Mac OS hardware and software teams. Schiller gave no details which Newton technologies will be folded into the Mac OS. "We will integrate those technologies that make sense into future products," he said. The announcement caps Apple's seven-year Newton experiment. First offered as a consumer PDA device, the technology more recently has been aimed at vertical markets. The division was not profitable historically, according to Apple Chief Financial Officer Fred Anderson. He declined to give sales figures for the MessagePad and eMate. In May 1997 Apple said it would spin off the group as Newton Inc. However, the company in September brought the products back inside, describing the eMate 300 as a strategic opportunity. Meanwhile, Apple said it will sell off its current inventory and continue support for the eMate and MessagePad devices.