TidBITS#662/13-Jan-03
=====================

  Steve Jobs kept us busy during his keynote at Macworld Expo,
  introducing two new PowerBooks; updates to iMovie 3, iPhoto 2,
  and iDVD 3 (grouped with iTunes 3 into a package called iLife);
  a presentation application called Keynote; and the new Safari Web
  browser. We cover them all, including a look at how it affects
  the Apple-Microsoft relationship. Also this week: X11 for
  Mac OS X; Rendezvous support from TiVo, Brother, and Aspyr;
  and Office X 10.1.3.

Topics:
    MailBITS/13-Jan-03
    New Apple Software Spices up iLife
    New PowerBooks: Mini Me and the Lunch Tray
    Apple Reduces Its Microsoft Dependency

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MailBITS/13-Jan-03
------------------

**Apple Releases X11 for Mac OS X** -- Leveraging the Unix core of
  Mac OS X, Apple has made available a public beta of X11 for Mac OS
  X, an environment that enables X11 applications to run within Mac
  OS X and makes it easier to port X11 applications to the Mac. The
  X11 package includes display server software, client libraries,
  and developer toolkits; an optional X11 Software Developer Kit for
  Mac OS X is also available. The public beta is available now as a
  free 41.5 MB download; the SDK is a 3.8 MB download. [JLC]

<http://www.apple.com/macosx/x11/>


**TiVo, Brother, and Aspyr Rendezvous with Macs** -- Apple made
  networking easier with the introduction of Rendezvous, a method
  of automatic discovery and connection of devices over IP networks
  that the company has submitted as an open-source standard. Now,
  other companies are starting to implement Rendezvous, starting
  with three announcements made last week. TiVo Series2 digital
  video recorders will soon be able to discover Macs and play shared
  music or display photos on a TiVo-equipped television, using an
  upcoming premium service package. Brother's HL-5070N Laser Printer
  boasts the capability to streamline the process of setting up and
  printing to local printers, and Aspyr's NASCAR Racing 2002 Season
  game makes it easy for multiple players to find and join games on
  their network. [JLC]

<http://www.apple.com/macosx/rendezvous>
<http://www.apple.com/pr/library/2003/jan/07rendezvous.html>
<http://www.tivo.com/>
<http://www.brother.com/>
<http://www.aspyr.com/mini-sites/sierra2002/>


**Microsoft Office X 10.1.3 Released** -- Microsoft today released
  an updater for Microsoft Office X to address several issues
  with the Italian Spelling Tool and the French Proofing Tools.
  Installing 10.1.3 requires that you already have the 10.1.2
  update (released in November) installed.

<http://www.microsoft.com/mac/DOWNLOAD/OFFICEX/OfficeX_1013.asp>
<http://www.microsoft.com/mac/DOWNLOAD/OFFICEX/OfficeX_1012.asp>

  The update patches the English, French, German, Spanish, and
  Swedish versions of Office X, and the stand-alone Word, Excel,
  PowerPoint, and Entourage applications for Mac OS X. Since the
  update appears to fix only issues with foreign-language features
  within Microsoft Office, it's not clear that most users will need
  this upgrade. [MHA]


New Apple Software Spices up iLife
----------------------------------
  by Geoff Duncan <[EMAIL PROTECTED]>

  Saying he had "two Macworld's worth of stuff for you today,"
  Steve Jobs unveiled a host of new software (and hardware, covered
  elsewhere in this issue) offerings at his Macworld Expo San
  Francisco 2003 keynote address. In fact, the sheer number of
  products prevents us from going into much detail about the
  software in this issue - look for more detailed analysis in
  upcoming editions of TidBITS.


**iLife** -- The digital hub remains a core Apple strategy, and
  the company has tightened the radius of its iApps by creating
  iLife, a bundle consisting of iTunes 3, iPhoto 2, iMovie 3, and
  iDVD 3. In addition to new features, these applications now
  integrate with each other - so iTunes playlists are available in
  iMovie, iPhoto albums are accessible in iDVD, etc. iPhoto 2 and
  iMovie 3 will be available 25-Jan-03 for free download (iTunes 3
  is already available). Due to iDVD's size, it's not practical to
  make it available online, so on 25-Jan-03 Apple will start selling
  the entire iLife package on CD-ROM for $50.

<http://www.apple.com/ilife/>


**Keynote** -- Steve Jobs has always been noted for his showy
  keynote addresses; now he's revealed the application he used to
  create his sophisticated slide shows during 2002. Keynote is a
  presentation program which takes advantage of Mac OS X display
  technologies like Quartz and OpenGL to make sophisticated slide
  shows. It imports and exports from PowerPoint, making it an
  intriguing alternative to Microsoft's dominant presentation
  program (see "Apple Reduces Its Microsoft Dependency" elsewhere
  in this issue). Keynote is available now for $100.

<http://www.apple.com/keynote/>


**Final Cut Express** -- Apple also announced Final Cut Express, a
  slightly stripped-down version of its Final Cut Pro digital video
  editing application. Final Cut Express uses the same interface as
  Final Cut Pro and offers most of the pro-level non-linear editing,
  transitions, and real-time effects as its big brother at about
  one-third of the price. That makes it a good choice for someone
  who wants to produce projects more sophisticated than what iMovie
  can handle, but who doesn't need extensive image capture and
  export capabilities. Final Cut Express is available now for $300.

<http://www.apple.com/finalcutexpress/>


**Safari Public Beta** -- One of the most exciting announcements
  was Safari, Apple's home-grown Web browser. Built by some of
  the folks who develop Chimera for Mac OS X, Safari is a new Web
  browser based on the open source KHTML rendering engine. Apple
  intends it to be the fastest browser available on the Mac - and so
  far, they seem to be pulling it off - with easy-to-use features.
  Currently Safari is in public beta and available as a tiny 2.9 MB
  download. On 10-Jan-03, Apple released a v51 update, which is
  recommended for everyone who initially downloaded Safari in the
  first few days after release.

<http://www.apple.com/safari/>


New PowerBooks: Mini Me and the Lunch Tray
------------------------------------------
  by Adam C. Engst <[EMAIL PROTECTED]>

  Amid rumors of video iPods and tablet Macs appearing during the
  Macworld Expo keynote address, Steve Jobs calmly introduced a pair
  of new PowerBook models that slot neatly into Apple's existing
  iBook and PowerBook lines. The most obvious distinction for the
  new machines is display size, and that's how Apple refers to them
  officially: the 12-inch PowerBook G4 and the 17-inch PowerBook G4.
  The 12-inch PowerBook G4 packs a lot of power into the smallest
  laptop Apple has ever made, and the 17-inch PowerBook G4 breaks
  new ground for the size of a screen in a laptop computer. Both
  PowerBooks support Apple's new 802.11g AirPort Extreme wireless
  networking; both also exclusively run Mac OS X and cannot boot
  into Mac OS 9 (though the Classic environment is still available
  to run Mac OS 9 applications).

<http://www.apple.com/powerbook/>

  Given Apple's penchant for differentiating the names of new Macs
  as little as possible, there was much talk at the show about what
  these new PowerBooks would end up being called. After all, many
  people refer to the Titanium PowerBook G4 as the TiBook, and
  Apple's parenthetical descriptors like Power Mac G4 (Mirrored
  Drive Doors) are both awkward and hard to say (and as a wag at
  the Netters Dinner chided me when I said the entire name aloud,
  the parentheses are silent). So the attendees of the Netters
  Dinner voted the most popular name for the 17-inch PowerBook G4
  as "Lunch Tray," with the 12-inch PowerBook G4's matching name
  being "Happy Meal." Despite the elegance of a matching set of
  names, I suspect many people will call the 12-inch PowerBook
  something based on "Mini Me," the character played by Verne
  Troyer in the Austin Powers movies. That comes thanks to Apple's
  hilarious TV ad for the new PowerBooks featuring the diminutive
  Troyer with Yao Ming, the 7-foot, 6-inch (2.3 m) center for
  basketball's Houston Rockets. We'll see what names actually
  catch on in common usage.

<http://www.apple.com/hardware/video/powerbookg4bigandsmall.html>


**17-inch PowerBook G4** -- With the new 17-inch PowerBook, Apple
  broke new ground in laptop size. The 17-inch screen is reportedly
  the largest laptop screen ever, although at 1440 by 900 (the
  widescreen 16 by 10 aspect ratio), it can't claim the award for
  highest resolution, since some PC laptops have screens that run
  at 1600 by 1200. Kudos go to Apple's designers for implementing a
  counterweight in the hinge that makes the lid incredibly smooth to
  open and close. Despite the massive screen, Apple managed to keep
  the overall weight down to 6.8 pounds (3.1 kg). It's also the
  thinnest PowerBook yet, with a thickness of just under 1 inch
  (2.54 cm), which is slightly thinner than the existing Titanium
  PowerBook G4. Rounding out the dimensions, it's 15.4 inches
  (39.2 cm) wide and 10.2 inches (25.9 cm) deep.

<http://www.apple.com/powerbook/specs.html>

  Rather than rely on titanium for the new PowerBooks, Apple
  switched to an aircraft-grade anodized aluminum. Although I'm not
  enough of a metallurgist to verify this, Apple claims the anodized
  aluminum is lighter and stiffer than the titanium used in the
  TiBook. My reading of bicycle frame building discussions comparing
  aluminum and titanium agree that aluminum is lighter, but not
  generally stiffer. However, it's also clear from reading those
  discussions that specific design makes a huge difference in final
  stiffness. The aluminum isn't painted, which will please those
  people whose watches have scratched the titanium finish or whose
  hand oil has caused the TiBook's paint to bubble and peel.

  Under the hood, the 17-inch PowerBook G4 offers a 1 GHz PowerPC G4
  processor with 1 MB L3 cache, 512 MB of PC2700 DDR RAM (upgradable
  to 1 GB), a GeForce4 440 Go graphics processor with 64 MB VRAM, a
  60 GB hard disk, a slot-loading SuperDrive (CD-RW/DVD-R), two USB
  ports, Gigabit Ethernet, a PC Card slot, audio line in, stereo
  speakers, a headphone jack, and an internal microphone. Video out
  is handled by S-video and DVI connectors, and Apple includes a DVI
  to VGA adapter. The 17-inch PowerBook G4 supports dual displays,
  and a new function key on the keyboard lets you switch easily
  between an extended desktop and mirrored displays. Despite the
  huge screen and fast processor, Apple claims users should see up
  to 4.5 hours of battery life with the new lithium-ion prismatic
  battery.

  FireWire is also onboard, in the form of a standard FireWire 400
  port and a new separate FireWire 800 port that runs at, you
  guessed it, 800 Mbps. FireWire 800 requires a new connector, but
  it's backward compatible with FireWire 400 if you use the adapter
  Apple provides. And speaking of ports, the two USB connections are
  smartly placed, one on each side of the base, making it easier for
  left-handed users (or anyone using extra USB devices such as video
  or audio editing controllers) to minimize cable clutter.

  Also built in are not one, but two forms of wireless
  communication. Bluetooth is now standard for communicating with
  cell phones and other Bluetooth-capable devices. Then there's
  AirPort Extreme, an enhanced version of AirPort wireless
  networking. AirPort Extreme relies on the 802.11g draft standard
  to provide 54 Mbps of bandwidth when communicating with another
  AirPort Extreme device, while still maintaining full backward
  compatibility with 11 Mbps (802.11b) AirPort devices. In a bit of
  good news for frustrated TiBook users looking to upgrade, Apple
  moved the antennas (which are used by both AirPort Extreme and
  Bluetooth, with some clever switching to make sure they don't
  interfere with one another) from the base to the upper edges of
  the screen. Apple claims that reception should be as good as with
  the recent iBook models, which provide better reception than any
  other machine I've seen.

  Lastly, Apple upped the cool factor of the 17-inch PowerBook by
  adding a fiber optic system that illuminates the keyboard from
  underneath, with the light shining through laser-etched keycaps.
  That's neat, but what's even neater is that it's controlled by
  an ambient light sensor that automatically raises the level of
  backlight as the room light goes down. The ambient light sensor
  also automatically adjusts the screen brightness, although you
  can control both manually from the keyboard as well. People who
  regularly work in dim environments are sure to find this
  particularly useful.

  The 17-inch PowerBook G4 will be available in February (though
  Apple's online store currently lists a 7 to 10 week estimated
  shipping timeline) for $3,300, and short of paying $300 more to
  add another 512 MB of RAM, there aren't any other options. It
  comes with a free copy of Intuit's QuickBooks for Mac New User
  Edition.

<http://quickbooks.intuit.com/qbcom/jhtml/skins/prod_ovw.jhtml?
ssaPath=qb_2003_mac_pro_1user>

  I'll be interested to see how the 17-inch PowerBook sells.
  Although the price is reasonable, the feature set is extremely
  good, and the screen is stupendous, it has one problem: it's big.
  Really big. Almost without exception, everyone I talked with at
  the show felt it was too big to be used as a general laptop
  computer, although it would be ideal for someone who merely needs
  a portable computer that can be moved from desk to desk. Though
  it's only very slightly taller than the TiBook thanks to a clever
  screen hinge, it's awfully wide, and I can't imagine using it in
  coach on most airplanes. It won't fit in many PowerBook bags, but
  the Apple Online Store offers two optional Brenthaven cases that
  are designed to hold it (and other bag manufacturers have already
  started working up new designs). When I asked about the size
  issue, Greg Joswiak, Apple's vice president of hardware products,
  shrugged and said, "That's what they said about the Titanium
  PowerBook G4 when it came out, too." For Apple's sake, I hope
  he's right, since it's one heck of a cool machine, and there
  will be people for whom it is utterly perfect.


**12-inch PowerBook G4** -- It was the biggest of PowerBooks, it
  was the smallest of PowerBooks. With apologies to Charles Dickens,
  that's how the keynote felt, since after introducing the big-
  screen 17-inch PowerBook G4, Steve Jobs reversed gears and
  showed off the svelte 12-inch PowerBook G4.

  It shares an anodized aluminum case with the 17-inch PowerBook G4,
  but with a 12.1-inch screen running at 1024 by 768, the new
  PowerBook has more in common with the 12-inch iBook. It's even
  smaller than the iBook in every way, measuring only 1.2 inches
  (3.0 cm) high, 10.9 inches (27.7 cm) wide, 8.6 inches (21.8 cm)
  deep, and weighing in at 4.6 pounds (2.1 kg). Both the PowerBook
  Duo and PowerBook 2400 are slightly smaller than the 12-inch
  PowerBook G4 in one or two dimensions, but not in all three or
  in overall volume.

  But where the iBook has been slowed by its reliance on the PowerPC
  G3, the 12-inch PowerBook G4 uses an 867 MHz PowerPC G4. To that
  it adds 256 MB of PC2100 DDR RAM (expandable to 640 MB), a 40 GB
  hard disk (add $50 for a 60 GB disk) a GeForce4 420 Go graphics
  processor with 32 MB VRAM and dual display support, a slot-loading
  Combo drive (CD-RW/DVD-ROM), VGA and S-video out (both via an
  adapter), a FireWire 400 port, two USB ports, 10/100Base-T
  Ethernet, along with stereo speakers (and a third mid-range
  speaker embedded in the bottom of the base), audio line in,
  headphone output, and an internal microphone. On the wireless
  front, the 12-inch PowerBook G4 boasts built-in Bluetooth support
  as well as a slot for an optional $100 AirPort Extreme card. The
  antennas are in the screen again, and Apple claims it should match
  the iBook's wireless range. Apple also says the 12-inch PowerBook
  G4 gets up to 5 hours of battery life from a lithium-ion battery.

  The 12-inch PowerBook G4 should be available in about two weeks
  with prices starting at $1,800; for an extra $200, you can replace
  the Combo drive with a SuperDrive (CD-RW/DVD-R). It currently
  ships with a copy of Intuit's QuickBooks. Unfortunately, the
  12-inch PowerBook lacks the ambient light sensor and fiber optic
  keyboard backlight of the 17-inch PowerBook G4.

  While I'm unsure about how well the 17-inch model will do, I have
  few doubts about the 12-inch model, since there are many people
  for whom the TiBook was too large and expensive, but the iBook
  suffered from lack of both performance and dual display support.
  Adding Bluetooth and AirPort Extreme merely sweetens the deal.
  The 12-inch PowerBook G4 is, quite simply, the perfect travelling
  laptop for a serious Mac user. And I want one.


**A Step Back** -- All that said, you may have noticed a few
  annoying limitations in the 12-inch PowerBook G4. Although 640 MB
  of RAM is enough, many people would like to install more. A PC
  Card slot might be nice, and a backlit keyboard would be welcome.
  It also has only VGA out instead of DVI, FireWire 400 rather
  than FireWire 800, and 10/100 Mbps Ethernet rather than Gigabit
  Ethernet. Why the limitations? Though space and power are
  undoubtedly tight in such a small machine, Apple was careful to
  provide a rational way for people to choose among Apple's iBook
  and PowerBook models, and the company didn't want the 12-inch
  PowerBook G4 to eclipse the larger and more expensive PowerBooks
  (the 15-inch Titanium models are still offered, and now represent
  the mid-range of the PowerBook line). Apple's pricing ramps up
  smoothly, as you can see in the list below:

* $1,000: 12-inch iBook (CD-ROM, 700 MHz)
* $1,300: 12-inch iBook (Combo, 800 MHz)
* $1,500: 14-inch iBook (basic config)
* $1,750: 14-inch iBook (more RAM and hard disk)
* $1,800: 12-inch PowerBook G4 (Combo drive)
* $2,000: 12-inch PowerBook G4 (SuperDrive)
* $2,300: 15-inch Titanium PowerBook G4 (Combo drive, 867 MHz)
* $2,800: 15-inch Titanium PowerBook G4 (SuperDrive, 1 GHz)
* $3,300: 17-inch PowerBook G4 (SuperDrive, 1 GHz)

  The feature set of each machine follows along with the price,
  making it easy to determine which laptop is right for you.
  Apple is clearly taking portables seriously, and Steve Jobs
  said that the company believes that someday portables will
  outsell desktops. Currently, about a third of Apple's Macintosh
  sales go to notebooks, compared with less than a quarter of
  sales industry-wide.

  Keep this product line ramp up in mind as you imagine what
  the future might bring. I could see Apple releasing a 15-inch
  PowerBook G4 using the anodized aluminum case of the new
  PowerBooks, particularly if the current TiBook continues to meet
  the needs of many new customers. I also think a G4-based iBook
  might be in the offing, but only if the total package doesn't
  impinge on the PowerBook line.


Apple Reduces Its Microsoft Dependency
--------------------------------------
  by Adam C. Engst <[EMAIL PROTECTED]>

  As is becoming increasingly common at Macworld Expo, Apple
  dominated attendees' attention by introducing a wide-ranging set
  of new hardware and software products. The new 12-inch and 17-inch
  PowerBooks, the speedy 802.11g-based AirPort Extreme, significant
  updates to three of the four iApps, three new major applications
  in Safari, Keynote, and Final Cut Express... the rapid-fire of
  announcements had journalists scribbling madly through Steve
  Jobs's two-hour keynote presentation.

  But, as interesting and important as most of the announcements
  were, the release of the Safari Web browser and the Keynote
  presentation program offer the first major public look at what has
  been one of Apple's main goals of late: to reduce the company's
  dependence on Microsoft for essential productivity software. The
  task is by no means done, so look for future moves to complete the
  task of making Microsoft's software excellent alternatives, rather
  than the sole choices in any given field.


**Past Efforts** -- When Steve Jobs returned to Apple in 1997, a
  five-year agreement was made between the companies, requiring
  Microsoft to continue producing Macintosh software, in exchange
  for which Apple would bundle Microsoft software - Outlook Express
  and Internet Explorer - with the Mac OS. That agreement is over
  now and won't be renewed, but Apple has been working for some time
  to wean itself from Microsoft, a move that's not only in Apple's
  best interests, but which may also benefit Microsoft by giving the
  company's Macintosh Business Unit (MacBU) some much-needed
  competition.

<http://db.tidbits.com/getbits.acgi?tbart=04090>

  Though Apple didn't make much of it at the time, the inclusion of
  Mail with Mac OS X was the first step in this strategy, enabling
  Apple to drop Microsoft's Outlook Express, which had been bundled
  previously. More recent public hints came with Apple's unveiling
  of iChat in May of 2002, since iChat specifically offered
  compatibility with AOL Instant Messenger, rather than Microsoft's
  MSN Messenger. Then, although it wasn't blatant, Apple's system-
  wide Address Book and the release of iCal meant that Apple had
  duplicated most of the basic features of Entourage X. The public
  problems became more obvious after Microsoft complained about how
  Office X wasn't selling well enough because Apple wasn't helping
  to market it.

<http://db.tidbits.com/getbits.acgi?tbart=06816>
<http://news.com.com/2100-1040-943859.html>


**Big Game with Safari** -- Once the cracks began to show, it
  became clear that Internet Explorer would be Apple's first target.
  Internet Explorer's favored position on the Dock made it the
  only non-Apple program to receive such treatment, and given the
  undeniable importance of a Web browser in today's computing world,
  Apple simply had to reclaim that spot.

  Conceivably, Apple could have purchased one of the smaller
  browsers, such as OmniWeb or iCab, but the company has avoided
  that approach with the iApps after turning Casady & Greene's
  SoundJam into iTunes. In particular, Apple chose to develop
  iPhoto and iCal in house, even though there were plenty of
  decent programs that Apple could have bought to kick start the
  development effort. Part of that is undoubtedly Apple's desire
  to show how quickly Cocoa applications can be developed from
  scratch; there's probably some of the old "Not Invented Here"
  syndrome in play as well, although there are good reasons to
  write software yourself, as you can read in the "Joel on
  Software" article linked below.

<http://www.joelonsoftware.com/articles/fog0000000007.html>

  So Apple set out to create their own browser, hiring a Netscape
  developer who was also working on the open source browser Chimera.
  That led to assumptions that Apple would use the open source Gecko
  HTML rendering engine that's behind all of the Netscape-derived
  browsers (Netscape, Mozilla, and Chimera), but those assumptions
  proved false when Steve Jobs announced that Apple had instead
  chosen the open source KHTML engine, reportedly because KHTML is
  significantly faster than Gecko and has about seven times fewer
  lines of code. Whatever the under-the-hood details, Safari looks
  to be a good, if not yet great, Web browser, and we hope Apple
  will continue to use it to push the browser paradigm forward.

<http://www.apple.com/safari/>

  Does the release of Safari change the Web browser landscape? Yes,
  since it will overnight become one of the primary Web browsers on
  the Internet, and anyone writing HTML must test against Safari
  along with all the other heavily used browsers. But overall, I
  don't think Mac users will find the change all that unsettling.
  Until Safari, Internet Explorer was the dominant browser, and all
  the rest (Netscape, Mozilla, Chimera, iCab, OmniWeb, and Opera)
  were used by people for whom Internet Explorer wasn't quite right.
  I suspect Safari will replace Internet Explorer, not just on the
  Dock, but also as the dominant Macintosh Web browser, and Internet
  Explorer will join the others as a browser of choice for those who
  eschew the status quo.


**Selling the Keynote** -- If the release of Safari was not
  unexpected, the appearance of Keynote was an almost complete
  surprise. Perhaps PowerPoint experts had been wondering about some
  of the effects in Steve Jobs's Macworld Expo keynotes in 2002, all
  of which relied on pre-release versions of Keynote, but if there
  was any such speculation, I never heard it. I had been thinking
  privately that Apple might be working to beef up AppleWorks so
  it could give Microsoft Office X some competition, but since
  AppleWorks doesn't include presentation software, I wasn't
  thinking in those terms.

  In retrospect, though, a cutting-out expedition to separate the
  weakest member of the Office suite from the herd makes total
  sense. Excel occupies an extremely solid position, since it's
  incredibly mature and Excel spreadsheets are required for the
  day-to-day functioning of innumerable businesses. Word's position
  is also rather secure, thanks to the need for people to exchange
  Word documents among Macintosh and Windows users and to import
  them into layout programs. Word is more vulnerable than Excel,
  though, because many people find the program's features - even
  essential ones such as version tracking and comments - ungainly
  and awkward. As much as Word is currently an essential application
  for vast numbers of people, a competitor that read and wrote Word
  format files perfectly would have a chance of supplanting it.

  With Mail, Address Book, and iCal already offering an alternative
  to Entourage, PowerPoint made sense as the next target for Apple.
  With the exception of a few programs like ConceptDraw Presenter
  from small companies, PowerPoint hasn't had any real competition
  since the demise of Aldus Persuasion in the mid-1990s. Although
  PowerPoint isn't a bad program, it had become the dominant
  presentation program more through its inclusion in the Office
  suite than its incomparable feature set or overwhelming ease of
  use. PowerPoint's file compatibility is important, but not nearly
  as much as with Word, and it doesn't fill the day-to-day role
  of Excel in running a business.

<http://www.conceptdraw.com/en/products/CDPresenter/>

  Hence Keynote. Although I'm not qualified to compare it to
  PowerPoint on a feature-by-feature basis, it looks as though
  it will be highly credible competition. Not surprisingly, Apple
  focused on helping users make visually arresting presentations
  with Keynote, but in a forward-thinking move, Keynote's file
  format uses XML (eXtensible Markup Language). Since XML files are
  merely structured text files, other programs will be able to write
  out Keynote files, thus making it possible to create automatic
  presentations based, for instance, on daily sales data. Plus,
  Apple enabled Keynote to import and export PowerPoint files, a
  capability that should address many file compatibility concerns
  (reportedly, QuickTime movies in PowerPoint presentations must
  be moved over manually).

<http://www.apple.com/keynote/>

  Unlike the free Safari and iApps, Keynote costs $100, and thus
  will not automatically take over as the Macintosh presentation
  software of choice. But the buzz about it at Macworld Expo was
  positive, and if nothing else, it should serve as a wakeup call
  to the PowerPoint team that they need to innovate or risk losing
  the Macintosh platform.


**How Should Microsoft Respond?** While not declaring war, Apple
  has certainly thrown down the gauntlet, and it remains to be seen
  how Microsoft will respond. Microsoft's MacBU has been flailing
  since the release of Office X in October of 2001. The more recent
  departure of MacBU general manager Kevin Browne emphasized the
  group's confusion and underscored the importance of Apple reducing
  its dependency on Microsoft for essential software.

  Apple must extricate itself from this too-close relationship with
  Microsoft carefully. Were Microsoft to become too angry about how
  Apple was portraying the company and its products, it's not
  inconceivable that Microsoft would dissolve the MacBU (which
  probably doesn't contribute that much to Microsoft's bottom line)
  and stop producing Macintosh software entirely. Such a move could
  still be disastrous for Apple, given the essential roles that Word
  and Excel play in business, government, and academia. However, I
  expect better from Microsoft, particularly since the company has
  long utilized the same strategy in the Windows market that Apple
  is following in the Macintosh market. What's good for the goose...

  Aside from the problem of being beholden to a company that is
  essentially your primary competition, the other reason it makes
  sense for Apple to lessen its dependency on Microsoft is that
  Microsoft hasn't been delivering of late. It's been 14 months
  since the release of Office X, and although carbonization of
  the four programs in the Office suite was an admittedly huge
  undertaking, Office X has few new features over Office 2001,
  released 13 months earlier. And Internet Explorer hasn't seen a
  major update since March of 2000, thanks in part to being left
  without a development team for long periods of time.

  Sadly, a renewed sense of purpose at Microsoft, if it's indeed
  happening internally, hasn't yet bubbled to the surface. In our
  briefing with Microsoft, the only new thing they showed was MSN
  for Mac OS X, a novice-level Internet service that, short of some
  moderately interesting parental controls, was basically a yawn.
  But even MSN for Mac OS X was exciting compared to the rest of
  Microsoft's limp announcements - the extension of a discount on
  Office X for new Mac buyers, the release of Entourage X on its own
  for $100, and the bundling of the Office X Test Drive with all new
  Macs (in which you can see Apple trying to let Microsoft down
  gently). My questions about whether we'd see a new version of
  Office X in 2003 were ducked, and no one would venture a comment
  on Safari or Keynote.

  Call me an optimist, but I hope that Apple reducing its dependency
  on Microsoft will motivate Microsoft to take renewed interest in
  moving Office X and Internet Explorer forward in interesting and
  innovative ways. Competition is a good thing, and Microsoft hasn't
  had nearly enough of it lately.


$$

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