Should Apple Merge Its Way Into the Wireless Future? John Sculley Thinks So

by , 2:30 PM EST, December 5th, 2000

Former Apple CEO John Sculley said in an interview that Apple might do well to consider merging with 3Com (COMS) to get access to the company's Palm OS and networking technologies.

Although most of the ON24 streaming video interview is dedicated to Mr. Sculley's personal venture capital strategies, at the end of the interview, Mr. Sculley congratulates Steve Jobs for the good work he has accomplished since his return and talks about Apple's business.

Mr. Sculley emphasized that broadband and wireless handheld technologies are about to change the world the way the PC did in the last 15 years. Cell phone and PDA technologies are at the same evolutionary stage the PC industry was at in 1985, he said.

Mr. Sculley apparently believes the best hope for Apple's future is to expand its product line into the nascent networked PDA market.

"When Steve came back he literally picked up exactly where he left off in 1985 and what he did was brilliant," said Mr. Sculley. "The challenge he has today is that the PC industry is largely a commodity industry..."

Finally, Mr. Sculley offered what is sure to be received as a controversial piece of advice:

"My sense is Apple ought to look seriously at even merging with a company, like 3Com, that is starting with a much more network-centric understanding of the world —where they have a platform with the Palm OS...If you combine Steve's extraordinary insight into industrial design and marketing with the platform technologies and network-centric know how that 3Com has you might find a bright future for both of them going forward."

3Com is currently trading at a new 52-week low today at 9 7/16. Apple's stock is slightly higher at 16 13/16.

The Mac Observer Spin:

Oh, no, let's don't start this thread again. Every 18 months or so the Apple-needs-to-merge theory is dragged out and recycled. However, this one is probably better than last time around when the venerable Don Crabb resurrected long circulating rumors that Disney was going to buy our favorite computer company. That was back in June of 1998. This time around the theme has been updated for our ubiquitously networked and increasingly wireless world. Apple has $4 billion in cash so Cupertino really could become a corporate raider seeking new technologies and new markets. It's possible, but don't hold your breath.