Even better... here's the article, in it's entirety.

June 24, 2003

Apple Announces Chip Deal and Other Moves to Lift PC's
By JOHN MARKOFF


SAN FRANCISCO, June 23 ? Steven Jobs, chief executive of Apple Computer 
, unveiled a new alliance with I.B.M. today that will install a 
powerful I.B.M.-designed 64-bit microprocessor chip on Apple computers. 
The move is a bid to stay innovative and independent in a computing 
world dominated by Microsoft and Intel .

The introduction of the new G5 chip, industry analysts said, is crucial 
to keeping Apple competitive with the ubiquitous Intel Pentium-based 
personal computers and to jump-start sales of Apple's Macintosh 
personal computers, which have been relatively flat the last two years.

The processor, Mr. Jobs noted today, is also the foundation for the 
company's software developments that will be based on a new version of 
its OS X operating system ? called Panther ? that Apple plans to begin 
selling for $129 before the end of the year.

The announcements were made at the opening day of Apple's annual 
software developer conference. Mr. Jobs, who makes his presentations 
seated on stage in front of a computer keyboard, which he plays like a 
concert pianist, received repeated ovations and on one occasion a gasp 
from his audience of 3,800 Macintosh software developers when he showed 
a clever way to find documents on a cluttered computer screen.

The presentation included a video instant-messaging conversation by Mr. 
Jobs and one of his executives based in Paris, who was seated with a 
clear view of the Eiffel Tower. His presentation also included a cameo 
video appearance by one Apple board member, former Vice President Al 
Gore.

Throughout his demonstrations of hardware and software products, Mr. 
Jobs did not stray from the theme that Apple remained an innovator and 
was moving forward faster than its PC industry competitors were.

"What does the competitive landscape look like out there?" he asked. 
"Our competition was going to be out there in 2004, they've slipped 
until 2005, and some people tell us it will actually be in 2006," he 
said, referring to a new version of Microsoft's Windows operating 
system, code-named Longhorn, that has been delayed.

At a variety of recent public forums, Mr. Jobs has been making the case 
that Apple is leading the PC industry in innovation. That appears to be 
justified, analysts said, both in new markets like the recent iTunes 
music service, which permits consumers to buy songs for 99 cents and in 
more basic technology areas like the Macintosh imaging technology 
Quartz. Microsoft is now planning a similar technology for the Longhorn 
version of its operating system.

"They can charge a premium for really great stuff," said Roger Kay, 
director of client computing at the International Data Corporation. 
"Everyone admits that, even the Windows people."

The challenge for Mr. Jobs, he said, is that even while Apple has had 
success in some areas, overall worldwide market share for Apple 
computers has continued to "flutter down."

Even Apple's strongest businesses, like the home computer market in the 
United States, where it now has a 3.4 percent market share down from 
more than twice that percentage in the mid-1990's, are weak, Mr. Kay 
said.

"Given everything they've done, he still hasn't expanded his installed 
base," said Andrew J. Neff, a financial analyst at Bear, Stearns in New 
York, referring to Mr. Jobs and the percentage of Apple users. "He's 
done very well, and he will probably create a strong wave of 
replacement purchases, but the realities of the industry raise 
questions about whether he can spur a permanent shift in market share."

Mr. Jobs insists that Apple has been able roughly to double its 
consumer market share the last year and argues that it has in part been 
held back by economic downturns in the publishing and advertising 
markets, where it has traditionally been strong, as well as by missteps 
it made in the education market.

He said that with just a little bit of help from the economy, as well 
as increased demand for desktop replacement machines, Apple will 
perform well when the new computers based on the G5 chip begin selling.

Today, Apple said that it would begin shipping its first three new 
models in August, with processors ranging from a single 1.6-gigahertz 
priced at $1,999 to a 2-gigahertz dual processor system priced at 
$2,999.

Apple is betting that it will be able to outflank Intel and 
Microsoft-based PC's by moving quickly to 64-bit processing for 
mainstream personal computer users. Mr. Jobs said that the new 
processor would allow personal computer users to have access to more 
than four gigabytes of memory ? which is the limit for today's 32-bit 
processors. That expansion, he said, will make the personal computer 
market grow again.

"You can write new kinds of applications you couldn't write before," he 
said. In his presentation Mr. Jobs showed demonstrations, including 
Adobe's Photoshop and Mathematica, a sophisticated mathematics equation 
solver from Wolfram Research that greatly benefited from the 64-bit 
processing power of the new G5.

Mr. Jobs acknowledged that the new chip still trailed Intel's Pentium 
in certain processing tasks, but he said that it had surpassed the 
Pentium for math-intensive operations. In dual-processor applications 
the new Apple systems are more than twice as fast as a comparable 
system from Dell Computer .

Mr. Jobs refused to comment on Apple's relationship with Motorola , 
which has made Apple's microprocessors until now. He acknowledged that 
the I.B.M. announcement should end speculation about whether Apple 
would adopt the Pentium chip. Apple said today that a three-gigahertz 
version of the G5 chip would be available within 12 months.

Mr. Jobs said, meanwhile, that Apple had sold more than a million iPod 
portable music players and more than five million songs through its 
iTunes music store.

Copyright 2003 ?The New York Times Company

On Tuesday, June 24, 2003, at 02:50  PM, Ward Oldham wrote:

> Robert,
> Now all we need is your member ID and password  :).
>
> Ward Oldham
>
>> http://www.nytimes.com/2003/06/24/technology/24APPL.html?tntemail0
>>
>> Good article.
>>
>> Robert
>>
>>
>>
>> | The next meeting of the Louisville Computer Society will
>> | be June 24. The LCS Web page is <http://www.kymac.org>.
>> | This list's page is <http://erdos.math.louisville.edu/macgroup>.
>
>
>
> | The next meeting of the Louisville Computer Society will
> | be June 24. The LCS Web page is <http://www.kymac.org>.
> | This list's page is <http://erdos.math.louisville.edu/macgroup>.
>
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