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From: jww@sdcsvax.UUCP (Joel West)
Newsgroups: net.micro.mac,net.micro.pc
Subject: IBM: "No PC2"; Apple: $17m loss
Message-ID: <993@sdcsvax.UUCP>
Date: Fri, 19-Jul-85 11:13:40 EDT
Article-I.D.: sdcsvax.993
Posted: Fri Jul 19 11:13:40 1985
Date-Received: Thu, 25-Jul-85 01:11:21 EDT
Organization: CACI, Inc - Federal, La Jolla
Lines: 36
Keywords: IBM PC2, Apple profits
Xref: linus net.micro.mac:2077 net.micro.pc:4374

Two news notes, from the Wall Street Journal and the LA Times

	NEW YORK--IBM doesn't plan to introduce a much-rumored
	"PC2" personal computer model anytime soon, Entry Systems
	Division Pres. Wm. C. Lowe said....When pressed..., 
	Lowe said any introduction of a successor to the PC
	wouldn't come before year's end.

	    The rumored product is "like Big Foot - it's just
	not there," Lowe said.

The articles go on to speculate than IBM is trying to avoid the
chilling effect the PC2 is having on its current products, although
Lowe claimed he made the announcement because the "speculation
is probably hurting competitor's sales."

(In February, Apple's Guy Kawasaki said flatly "there will be no
new Macintosh in 1985."  This obviously implies a new machine at
the Jan. 1986 shareholder's meeting, which InfoWorld's John Dvorak
claims will be a color Mac.)

Separately, Apple posted its first lost since it went public.
It lost $17 million, sales dropped 11% in the April-June quarter;
It charged $40 million to the reorganization that sacked 1,200
workers, closed 3 of 6 plants, and slashed the advertising budgets.

Analysts note that in 1984, Apple discouraged businesses from buying
Apple // computers for fear it would hurt Mac sales, but the Mac
never took up the slack.  One survey said Apple held 27% each of
new sales to small and mid-sized business in the 1st Q 1984; 
down to 13% and 8% respectively one year later.

----
	Joel West	CACI, Inc. - Federal (c/o UC San Diego)
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