Actually, I'm in the planning stages of my own computer assembly and
support shop. It may or may not get off the ground, but who knows? I
do have some business knowledge, and have watched this industry for
several years. The problem right now is that Apple has an increasing
"customer goodwill" problem: They're losing it. And it was the one
thing that kept Apple going for so many years.
Apple does have substantial cash reserves, an article in the Mercury
News posted to bayarea.com
(http://www.bayarea.com/mld/bayarea/business/companies/3263779.htm)
claims Apple to have four billion dollars in cash. Even assuming it
costs Apple two million to keep iTools running until it dies by upgrade
to .Mac or attrition, that's not even a dent compared to what it could
do to keep people happy with purchasing Apple products.
I've seen several reports over the years talking about Apple's high
amount of fluid cash, so it's pretty hard not to accept the fact it's
out there. Canceling iTools the way they have is a certain way to
generate ill will from the users, as has been shown by the large (and
-badly- written) petition that started circling around, and the other
recent developments such as the high price for 10.2 are not helping. At
all.
Yes, Apple needs to generate more income. Yes, I think .Mac would be
worth $99 to the right people, but I think Apple is making two key
mistakes. First, alienating iTools users by cutting them off. Second,
they're messing up by releasing the software that will enhance .Mac the
most (iCal) close to the end of the iTools $49 buy-in deadline. They're
intentionally playing iTools users to try and get an instant cash
infusion, and it's good business sense, but poor customer relations.
My biggest problem is that Apple seems to have next to no customer
relations skills lately. I feel like asking Jobs "What Have You Done
For Me Lately?".
-----Original Message-----
From: newtontalk-bounce_at_newtontalk.net
[mailto:newtontalk-bounce_at_newtontalk.net] On Behalf Of Keith E. McComb
Sent: Friday, July 19, 2002 1:28 PM
To: newtontalk_at_newtontalk.net
Subject: Re: [NTLK] Geez people, freaking get over it
At 01:10 PM 7/19/2002, you wrote:
>But if Apple keeps doing things like this, there won't -be- a next
>iBook. Apple has a war chest in the billions; it's not going to dent
>seriously to live up to what many people expected.
I've kept out of this one up 'til now, but this comment got me.
I assume you can prove this comment that they have billions of dollars
simply waiting around to be used - as you phrase it "a war chest"?
Have you ever run a business before? (I don't ask this snidely - it's
an
honest question.) I'm in the process of setting up a publishing
business,
and I am astounded at the stuff I never realized you needed to worry
about
- and every single worry costs a dollar amount. (Being America-centric
here, since I live in NJ, and will be setting the business up there.)
I'm
not even contemplating the extra money required in a tech business,
since
I'm not setting up my company to design/sell computers.
I think what you may have meant here is that the company is worth
billions
on paper. However, that money is all virtual. As active, ready cash,
I'll
bet that number is lower by orders of magnitude. Remember, there's R&D,
there's a simple thing called paychecks, there's electricity, taxes, and
in
case they happen to not own the actual land their buildings sit on,
rent...need I go on? Name me a single company that has available cash
in
the billions - I'm betting there isn't one. Remember, you can say that
they have assets in the billions, but that doesn't equate to being able
to
dip your hand into the till and pull that money out.
Keith McComb
=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=
Would somebody PLEASE reboot the clue server?
=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=
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