In his 15 Jan 1996 18:17:54 message, Denys said:
> Just last week, Apple posted what I believe to be a US$68 Million loss.
> Their share of the market, by all accounts is 10% and shrinking.  They are
> not what I would characterize as 'a good shape'.
 
To which I respond: A little bit of knowledge is a dangerous thing.  Apple
has not announced their 1st quarter earnings yet, and the $68 Million loss
is (so far, at least) still speculation. What Apple did announce is that they
will announce a "substantial" loss, due to inaccurate projections of what
products would be in high demand in Q4 of 1995. This led them to over-
manufacture the entry-level Macs (which the "market" ended up being cool to),
and under-manufacture the high-end systems which would normally appeal to
niche users in vertical markets, not consumers looking to play video games
in their family rooms.
 
Sort of analogous to HP finding out too late that there's been a run on the
LaserJet 5Si because Gramma and Grampa Beauchemin, and tons of other retired
folks, all want to get into the home publishing business next year. Maybe it
makes sense --- but only with 20-20 hindsight. You wouldn't blame HP for
assuming that the home market would want a less pricey version?
 
Apple still has a ton of cash in its coffers, and it's unlikely to go out of
business anytime soon. This quarter's loss is just one more episode in a long-
running soap opera.
 
HP could do much worse than to link up with Apple (either informally, or as a
joint venture, or even through acquisition), and marry the 3000 technology as
servers with the Macintosh as front ends.  I agree with Glenn; this is one
idea that hasn't been thought about nearly enough.
 
Kind of regards...Neil