| | December 27, 1999: Don't look now, but the rest of the industry just swiped another Apple innovation: computers that get less powerful and more expensive. Meanwhile, multiprocessor G4s may be Apple's secret weapon in the Megahertz Wars, and rumors of Disney and Apple refuse to stay dead... | | |
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Follow The Leader (12/27/99)
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And once again, Apple leads the way and the rest of the PC industry clamors to catch up. This time, though, the Apple innovation being copied may surprise you: it's the "Pay More, Get Less" paradigm. You certainly remember what was unquestionably Apple's biggest PR misstep in 1999: the slowing down of the entire Power Mac G4 line, which was prematurely introduced at the original speeds of 400/450/500 MHz. After Apple's unprecedented announcement, the G4s ran at 350/400/450 MHz, and yet the prices stayed the same. To the best of our knowledge, that was the first time in history computers got slower and (effectively) more expensive instead of cheaper and faster. So much for Moore's Law.
Yet somehow Apple managed to keep its shine-- even after a painfully bungled cancellation and reinstatement of customer pre-orders for the original G4 systems. Evidently the PC industry sat up and took notice; if Apple could get away with selling less for more, then it was certainly worth a shot for them, too, right? After all, with prices spiralling ever downward and the "free PC" threatening to end sales profits completely, it's not surprising that Apple's "Pay More, Get Less" innovation would look particularly attractive. And while we didn't see press releases from other computer manufacturers trumpeting the adoption of Apple's new standard, the change did happen-- at least, according to CNET. In November, the average PC price "jumped nearly 20 percent" since the month before. Take that, consumer watchdog groups!
Now, for those of you concerned about what Apple's breakthrough sales paradigm might mean for the future of the industry, fear not-- we doubt prices are going to keep rising. In fact, Apple is expected to announce new, faster G4s at Macworld Expo in just a couple of weeks, at which point you can bet that the rest of the industry will once again follow suit and "faster and cheaper" will resume its long-held position as the status quo. Meanwhile, we're hoping that Apple patented their "Pay More, Get Less" business model, 'cause it sounds like they're due to receive some big, fat royalty checks.
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SceneLink (1996)
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Seeing Double (12/27/99)
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Speaking of those slowed-down Power Macs, after a wonderful hype-licious introduction last August, the Power Mac G4 just doesn't seem to be shaking many trees these days. Yeah, it's stunningly gorgeous in Graphite-- but so is the iMac DV Special Edition. Yes, technically the G4 is a supercomputer for your desktop, but Altivec (uh, we mean the "Velocity Engine") only speeds applications written to take advantage of it-- and there aren't all that many out there yet. Numerous real-world tests appear to indicate that a really fast G3 is often quite a bit faster than a high-end G4. And while gigaflops may push the geek buttons of a few souls out there, the vast unwashed majority feels their pulses quicken at the mention of megahertz instead. What's Joe Schmoe going to pick: a 450 MHz G4 or an 800 MHz Pentium III? Sad, but true. The Power Mac G4 just hasn't caught on like it should have.
That's not to say that we don't want one-- especially now that even the $1599 "low-end" model comes with a Sawtooth motherboard and a Rage 128 Pro graphics card. It's just that, after all that "supercomputer" hype, the G4 has yet to take the world by storm. We don't have any sales numbers available, but we know lots of people buying iMacs and iBooks; we know maybe two people with G4s. What we're looking for is some way for Apple to put the buzz back in the G4, reinvigorate it, and get them flying off the shelves (now that they can actually build them). A speed bump, as rumored for Macworld Expo, will help, but it's not going to be enough. That's why we should all be excited about "Mystic," Apple's upcoming multiple-processor G4 Macs. According to Apple Insider, an Expo introduction is on track, with the first dual-500 MHz system slated to ship sometime in February or March. Quad-processor machines will follow.
Okay, sure, the Mac OS isn't symmetrically multiprocessing yet, so these Macs probably won't be able to take full advantage of both processors to start. Initially we're probably not going to get much more than new multiprocessing Photoshop plug-ins, but it's something Apple can use to build buzz again. And there's always the possibility that Apple will bill that dual-500 MHz box as a 1 GHz Mac in its marketing campaign in order to take the lead in the Megahertz Wars. Specious? A bit. Intellectually shaky? Probably. Guaranteed to generate some press, be it good or bad, to get the G4 back into the public's mind again? Hell yes. And once Mac OS X ships, those multiple-processor Macs will really be able to scream.
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SceneLink (1997)
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They're All Messed Up (12/27/99)
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It's back! It's back! Just when you thought those old "Disney Buying Apple" rumors were dead and buried, they stagger back to life like them thar flesh-eating ghouls from "Night of the Living Dead." We're greatly indebted to MacNN for pointing out Fortune Magazine's list of "People To Watch in 2000," which lumps Disney's Michael Eisner together with our own Steve Jobs, and gives us a belated Christmas gift: a reason to smile.
Okay, we admit it-- this isn't exactly a "Disney Buying Apple" rumor. Instead it's one of the mutations we've seen crop up from time to time, surmising that Disney might buy Pixar instead. Here's how it all hangs together... Toy Story 2 was (and continues to be) huge, yet neither Disney's nor Pixar's stock has really reflected that. So now you've got Eisner looking at AAPL's price compared to a year ago, and wondering if Uncle Steve could pull off the same kind of feat if Pixar were absorbed and Steve took the spotlight. Get it? It's business as usual; the familiar refrain of Eisner supposedly grooming Jobs as his successor to the throne of the Magic Kingdom.
Now, let's say this actually comes to pass. Do you really suppose Steve would leave Apple completely? Not likely. Even if he were finally ready to relinquish his iCEO position, you can bet he'd still be Chairman of the Board. So then you'd have the head of Disney pulling strings at Apple. It may not be an actual buyout, but it's darn close-- and who's to say that Jobs wouldn't then RDF Apple's Board into selling the company to Disney outright? Oooooh, the possibilities. Will it happen? Well, it hasn't happened the last seventy-kajillion times we heard this rumor, but there's a first time for everything...
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SceneLink (1998)
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