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http://www.insanely-great.com/news.php?id=529

The Hard Facts Behind Apple''s Maine Education Endgame
By Remy Davison, Insanely Great Mac
June 11th 2002

Maine and Apple need each other.

An Associated Press story today reports on Steve Jobs'' visit to Maine, where he gave 
a speech with Governor King. But the real news is the hard numbers of the politics of 
the US education market.

As IGM reported earlier today, Apple is in the midst of a sales/marketing 
reorganization which could make or break its education position.

The Associated Press story - based on Governor King''s comments - demonstrates that 
the $37 million, 4-year contract between the state and Apple was really a marriage 
based on interdependence. King wanted a revolutionary school technology program; Apple 
wanted  to hook a big contract for its then-new iBook in May 2001. 

What was revealing was the cost of breaking the contract with Apple. King said that 
even if they had wanted to, the cost would have gone very close to the $37 million 
Maine was laying out for the iBooks.

If nothing else, Apple Legal sure write tough contracts.

Previously, the AP report  says, King noted that Apple had effectively contributed $15 
million to the program by discounting products and services. 

Similarly, the announcement of the deal was a critical one for Apple, particularly in 
the wake of the Dell announcement last year that they had caught Apple Education 
napping during the 2000 sales force reorganization. 

As Jobs put it, the Maine contract "was one that we decided we just couldn''t lose."

Jobs isn''t wrong. While many at Cupertino''s blood must have run cold during the 
initial teething troubles at Maine, the iBook program could potentially be a showcase 
for Apple technology. If other school districts - even a few more - follow suit, the 
critical mass of schools which run Windows/PC programs could give iBook - and Mac OS X 
- a long, hard look.

The Maine laptop program was a source of controversy from the outset, with some 
parents in opposition to the iBook program.

Some students also misused their laptops in the initial stages, which led to the 
iBooks'' return to Apple, where they received a security workover.

But despite the state''s $180 million deficit, the iBook program is apparently secure. 
With PowerSchool, eMac and iBook, so is Apple Education.

Provided this reorganization of Apple Ed closes windows of opportunity. Not opens them 
for Dell. Apple cannot afford a repeat of 2000.


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http://www.insanely-great.com/news.php?id=529 




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