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Tough Love For Apple Computer When you point your browser to macobserver.com, you can safely assume that you have arrived in the midst of the Mac faithful. Yet as long time supporters and end users of the Mac platform we must not turn a blind eye to the errors of Apple’s sometimes wayward management team. The New Apple has arrived, we’re all thinking different and the winds of change are blowing in our faces. We mustn’t allow the recent success of the iMac and a few points of regained market share to let Apple’s management team get sloppy. This team or various incarnations of it over the years are the foremost reason that the Macintosh is not the world’s dominant personal computing solution. Let’s be honest about this, Apple’s technology is the world’s best. Corporate management, not research and development, made the blunders that gave Microsoft the universe on a sliver platter. Of course, finger pointing and 20/20 hindsight aren't constructive. But neither is a blind cheerleading section. I am concerned by what I have read about Apple’s German Subsidiary at http://www.heise.de/ct/english/98/25/028/. Apple Computer GmbH seems to be doing everything wrong, from poorly organized marketing campaigns to screwing up the distribution channels to adopting cavalier attitudes about how and when to report earnings and/or losses. I was shocked to read that Apple spokeswoman Theresa Wermelskirchen is reported to have said, "The guideline from Cupertino clearly says: less revenue, more earnings," while denying that they missed their numbers for 1998. "Less revenue, more earnings"! Those are the foulest words imaginable to the Mac loyalists who want to grow the platform. Worst, they are suicidal words from a company whose future success is hinged on building more market share and mindshare. It implies that Apple Germany is going to keep its prices way high and move less product, but the books from the profit margin point of view will look peachy. Meanwhile, Apple’s market share in Germany will continue to decline. It sounds as if the Gil Amelio era has never ended in Europe. Heads need to roll. The ranks of Apple in Europe need to be purged of the dead wood. Apple’s market in Germany is only a small percentage of Apple’s worldwide sales figures so the numbers aren’t going to be noticeable in the bigger scheme of things. However, the mindshare lost in an incredibly important market space like Europe is not measurable by the conventional tools of the accountant. The Mac Loyalists in Germany are organizing to let Cupertino hear their voices raised in protest. This is the only way we would have ever heard about this situation. What about Apple’s operations in more silent parts of the world? Are the same bad management policies being pursued in Asia, and South America? Can we trust the corporate suits in Cupertino to do the right thing or are they going to blow it again? It looks like Wall Street doesn’t trust them judging from the lackluster performance of the stock even with the in-your-face-success of the iMac. The rule of thumb here is when you're ten points behind in the game, one homerun isn't going put you in the lead. Not only does Apple need more homeruns (we’re all betting on the P1,Yosemite and OSX), Apple’s management needs to execute flawlessly over the years not just for a few quarters. I would encourage all serious MacHeads to read about the Apple Germany GmbH crisis and then submit your appalled signature to the "Open Letter to Steve". Your comments are welcomed. |