Santa Cruz Sentinel from Santa Cruz, California • Page 18

i wi i i iBlLflSDirDCBSS B-4 Tuesday, Oct. 18, 1994 Sentinel: Apple flubbed first shot at software sale Business digest Market in brief Oct. 17, 1994 DOW (Industrials) NYSE where Windows is today if they had done -this licensing five years ago," says Linley Gwennap, editor of the newsletter Microprr', cessor Report. The question of cloning licensing tech- -nology to outsiders to broaden a market always has been a troubling one for Apple." A successful cloning strategy would turn the -Mac architecture into a broad making Apple's machines cheaper and ing software companies more incentive to write for the Mac. But selling the Mac operating system also would let doners undercut Apple's profit margins, which in the 1980s were huge.

The idea of selling what Apple insiders called the "family jewels" was unpalatable in some Apple circles until very recently. Now, Apple executives say they are com-. plete clone converts and have lined up foreign and domestic computer makers. "Their world might be very different" had the company made its licensing move earlier, says Gordon Eubanks, chief executive officer of software maker Symantec Corp. Sculley declined to comment, as did Spindler.

As it is, Apple's world is overshadowed by the gargantuan industry of PCs using Microsoft software and chips designed by Intel which account for about 80 percent of the market. Apple's share of the personal-computer market hovers at about 11 percent. Lean rivals building Microsoft-based PCs have forced Apple to cut gross profit margins by half in five years. Microsoft's Windows 95 operating system, due out next year, will erode the last big advantages the Mac has. Mac clones are a year or two away at best, and Apple is left with an aura of lost opportunity.

"There's no question Macintosh could be ple will let International Business Machines Corp. clone Apple's Macintosh software. Motorola Inc. is expected to join them in creating a new PC design that will run Apple's basic software, among others. Like Sculley's aborted plan, Spindler's new deal envisions a proliferation of Macintosh clones that bolster Apple's fortunes.

But Microsoft is much stronger than in 1989, the "Mac" has lost its compelling edge, loyal software houses have defected and Apple is weaker from two years of price wars. Spindler's deal with the titans is a gutsy one. But many in the industry see it as a play from a weak hand that won't alter Apple's position as a marginal contender a play that Apple had a chance to make from a much stronger hand. Apple scuttled serious cloning plans in 1985, 1989 and 1992, despite urgings of senior executives who felt cloning was in Apple's best interest. By JIM CARLTON The Wall Street Journal CUPERTINO One day in 1989, John Sculley had a contract in hand that needed only his signature to broadly transform his company, Apple Computer Inc.

The contract would have put in force a plan by Sculley, then Apple's chief executive officer, to let rivals use Apple's greatest asset, the easy-to-use software that makes its personal computers so attractive. In essence, Apple would have become more than a computer maker by mimicking Microsoft strategy: Prosper by selling operating software to hundreds of PC makers. Sculley didn't sign. His successors at Apple wish he had. Five years later, the same task of recasting Apple has fallen to Sculley's successor as CEO, Michael Spindler.

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Oct. 19, 10 to 12 Noon Sentinel staff report WATSONVILLE Skyway Freight Systems has developed what it calls an "electronic packing slip" that will enable it to transmit shipping information electronically, the Watsonville-based company announced Monday. Senior vice president Ray Lutz said in a statement that the transmission capability is a shipping-industry first. He said it should save time and money in addition to centralizing the shipping and billing procedures. The "electronic packing slip" includes data provided by the shipper, including the product number, Over 6,000 Trusts prepared Qualify to Obtain a FREE Trust! Reservations Not Required Sponsored by: KENSINGTON ESTATE SERVICES Since 1987 800-776-2051 ENTERPRISE Ford issues second recall of Contour A flaw in a fuel tank part is forcing Ford Motor Co.

to issue the second recall of its new Contour and Mercury Mystique sedans in less than a month. The automaker said Monday it is recalling 28,500 of its 1995 Contours and Mystiques to replace a plastic part that might cause gasoline to leak at the connection between the gas tank and the filler pipe. Ford also said it has stopped production at the Kansas City plant that makes the cars because it doesn't have enough replacement parts to fix the recalled vehicles and build new ones at the same time. The plant is scheduled to resume production next Monday. Kidder employees brace for mass axings NEW YORK As PaineWebber Group Inc.

trumpeted its $670 million purchase of Kidder Peabody, employees at Kidder braced for one of Wall Street's worst mass axings in four years. "The agreement announced Monday by General Electric Co. to sell Kidder calls for the layoff of roughly half of Kidder's work force of 5,000, mostly to eliminate duplications. Kidder cuts would create one of the biggest waves of layoffs in the securities industry since the collapse of Drexel Burnham Lambert Inc. in 1991.

RENT-A-CAR Offer valid at participating S.F. Bay Area location thru 103194. No other discounts apply. THE GREAT QUAKE OF 1989 Tent Candlelight Collapsed roads and On October 17, 1989, at 5:04 pm every life in Santa Cruz shifted. Those who escaped personal loss and injury helped friends and neighbors who were less fortunate.

The Sentinel was there. Our reporters and photographers hit the streets when the pavement was still buckling, capturing the drama on film and in print. And so began the collection nf npws cfnripc '-n and photos that document the greatest catastrophe to face our county. Those first photos and a narrative recount events are Businesses stock goods, sales up "WASHINGTON Businesses built up their stockpiles at a rapid pace in August despite the fastest sales in 7 'a years. Inventories rose 1 percent, the fifth consecutive advance, the Commerce Department said Monday.

Sales rose 3 percent as auto dealers restocked following a July shutdown to retool for 1995 models. Analysts said the figures increase the chances the Federal Reserve will raise interest rates again next month to cool inflation. Sentinel wire reports in the highly acclaimed 112-page pictorial, description, serial number, quantity and package number. Skyway then will add a billing number and other transportation-related information. To use the system, a shipper must be able to transmit order information via Skynet (the company's tracking system), e-mail, fax or EDI Advance Ship Notice.

The system is being tested with a major customer and should be available to all Skyway customers within a few weeks, according to the company. Quake loans set record with SB A The Wall Street Journal The quake that shook Los Angeles in January resulted in more SBA loans to businesses and homeowners than the hurricanes, floods and riots of the last five years combined, says Bernard Kulik, the agency's chief of disaster aid. As of Sept. 30, the end of the 1994 fiscal year, the SBA had approved nearly 106,000 loans totaling $3.4 billion to help repair damage caused by the Northridge quake. Last year's Midwest floods resulted in only about $608 million in SBA loans.

Hurricane Andrew led to a mere $652 million in loans. The earthquake is the major reason that the SBA's disaster-assistance program granted a record $4.1 billion in loans for fiscal year 1994, topping the previous record of $1.6 billion in 1993. Hidden damage made the earthquake especially costly. "Buildings were shaken vertically, so you didn't see wide cracks," Kulik says. "But when you looked beneath the surface, you could find six-inch steel bolts cut in half." To handle the huge workload, Kulik had to expand his staff of temporary workers to 3,500 from 900 before the disaster.

All but 1,000 are still working. Ten months after the quake, the agency still is getting 1,000 loan applications each week. 5:04 P.M.: The Great Quake of a v-w Am A 1989." Sales of this MONDAY'S CLOSING NYSE LISTINGS Close American Med. 25'i BankAmerics (BAC) 45 A book raised Chg. -V4 -Vi Vd -V4 -1 Comerlca (CMA) VVi Dow Jones Inc.

(DJ) 30 Gollschalks Inc. (GOT) 8'i Lockheed Corp. (LK) 71 'a Pacific Telesis (PAC) 30tt Planrronics (PLT) 76t Safeway (SWY) 30'i i Walkins-Johnson (WJ) 32 more $400,000 than V. in disaster relief for Wells Fargo (WFC) 149'i William J. Wrigley (WWY) 43 -ft NASDAQ LISTINGS Bid Ask Chg.

local residents. Apple Computer (AAPL) 39 Vi 39Vi -Hi -V. Borland Intl. (BORL) ll'2 11 Coast Commercial Bank lO'i Granite Const. (GCCO) 21 Vi 21 Vt Intel Corp.

(INTO 57 58'. Odwalla (ODWA) II l)'i Orchard Supply (OSHC) V'i 10' Pacific Capital Bancorp li'i 17 Santa Cruz Oper. (SCOC) 9V 10 Seagate Tech. (SGAT) 24Vi 24'. West Marine (WMAR) 21 Vi 22'i Courtesy: Baikie Alcantara, Inc.

To commemorate the fifth anniversary of the Quake, this pictorial is available for a limited -Vi -Vi time for just $5.00 per copy. 4 More than 60,000 copies sold at $10.95 each. More than $400,000 raised for disaster relief. ACT NOW TO SAVE THOUSANDS Clip and mail or call to order. Mastercard Visa accepted.

If your current mortgage is: 1. 30525 2. An ARM tied to a CD, Treasury, or Libor Index CALL NOW TO INSURE LOWER FUTURE PAYMENTS Please send. Name of "5:04 P.M. The Great Quake of 1989" Phone I I I Address.

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