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To: J Fieb who wrote (30651)3/9/1998 9:58:00 PM
From: DiViT  Respond to of 50808
 
Apple stakes future on new device

news.com

By Jim Davis
Staff Writer, CNET NEWS.COM
March 9, 1998, 6:20 p.m. PT

Apple Computer (AAPL) is working on portable and TV set-top entertainment devices able to play everything from music CDs to DVD movies and offer Internet access as well, as the company bids to refashion itself for a market increasingly marked by the convergence of consumer electronics and PC technologies.

The top-secret project could catapult the company back into the limelight of the high-tech industry if, as planned, the company combines a WebTV-like Internet access device with a CD or DVD player to create one easy-to-use, low-cost unit, sources close to Apple said.

One source said the convergence project is code-named Columbus.

Such is the secrecy surrounding the project that details about the device are murky, but the breakthrough product may constitute the first evidence of Apple's efforts to develop a network computer-type device.

"Apple has bolted every porthole to developers who would have helped them with such projects in the past," says Richard Dougherty, president of The Envisioneering Group. Still, Dougherty has noted that there "is some frenzy of activity to extend the Mac OS to other devices," although he has not seen any such devices firsthand.

Unlike a network computer (NC), the next-generation device is expected to be marketed as an entertainment device or information appliance, instead of a PC replacement. Some prototype versions are capable of playing DVD movies as well as audio CDs, according to various sources familiar with the project. The upshot is that it would be an entertainment device with ties to the Internet, similar in the latter respect to a set-top box, such as Microsoft's WebTV.

Content could have "hooks" to Internet Web sites, making Apple's device an enticing platform from a commercial point of view. Major developers are interested in the device, according to sources, because of the possibilities for highly targeted marketing, for instance. Developers like Disney already use Apple technology such as the QuickTime format for multimedia content authoring and playback, according to Envisioneering's Dougherty.

The notion of an information appliance isn't a new one. In fact, Apple has already designed a product remarkably similar in concept. The Pippin, sold by Bandai and a handful of other licensees, looked somewhat like a game console that could plug into a TV set but also came with a keyboard, played CD-ROMs, and offered Net access.

Development was canceled last year as Apple looked to stem a tide of quarterly losses, but has been picked up again as Steve Jobs, Apple's interim CEO, looks for the next "insanely great" product to revive the company's fortunes.

Sources said the advantage of Apple's device is that both audio and multimedia content can be accessed without having to wait for a PC to start up, thanks to a technology called Enhanced CD.

Sony, Philips, Microsoft and Apple were co-developers of the technology, which allows multimedia content to be placed on a regular audio CD.

Developers are eager to exploit a device such as Apple's top-secret Columbus because users could surf a related Web site and view music lyrics or better yet, purchase related merchandise, instead of just listening to audio.

But Apple isn't alone. Microsoft and Sony, among others, are also racing to develop similar products.


Apple declined to comment.