Big Bang, another

Despite the huge number of publications on the causes that led Apple to disaster in the late 90s, a clear and distinct answer to the question “why” as there was no and no. If something is not, and like… Add to that chaos with another theory. Don’t take it too seriously…

If you do not take into account the “regular” meaning of the phrase “big Bang”, which is clear without further explanation to any person, at least a little knowledge of the Russian language entity called “big Bang” without my homegrown theory for several. Each new entity multiplies the chaos, and someday the chaos will reach a critical point, and will create a “big Bang, big explosion.” But let’s not talk about scary.

The most important “big Bang” is the Big Bang Theory, the most plausible and almost proved the hypothesis about the origin of the universe. Another “big Bang” has a direct relationship to Apple and its history, he clearly was. Not a hypothesis. This is one of the code names System 7, the most revolutionary and innovative version of classic Mac-native operating system. Except, perhaps, the very first of them.

And another big Bang (this is my personal opinion) happened in the early 90’s, in business one California company with a fruity name, almost simultaneously with the release of System.

The prehistory of the big Bang

80 years young, but incredibly arrogant of Apple Computer, feeling its special place in the industry and in the history of mankind, which was close to the truth, selflessly and not paying attention to the true state of Affairs in the world, doing what he wanted.

Competitors, by hook or by crook, reducing the cost of computers to increase sales and attract maximum number of buyers would be shocked if they could look at the top secret estimate of the sales Department of Apple. The difference between the cost and the amount on the price tag, the average was 55%. At the same time, the company didn’t skimp on components, using the most expensive and the best offer on the market, its products, and in fact was incredibly good.

This was done intentionally: Mac and consumer qualities, surpassed all the others, they were highly addictive, to the development of their hardware and software invested huge funds and efforts, and the exorbitant prices makes this approach cost-effective and profitable.

Critics have called the policy stupid and suicidal in terms of sales, it was second best of the competitors, but the most important criterion for success was and still is received by the business profit, and she rolls over. There is trouble, falls and failures, sometimes even crises (non-lethal), but, by and large, have rivals in its segment of the market and in fact was not.

The first Windows version up to 3.0, any threat to a giant piece of fruit and really had no idea. Accustomed to look upon all other top-down, Apple employees, whose duty it was to timely detect dangerous trends on the market, Windows 3.0 did not pay attention, as it turned out – in vain.

In 1991, shortly after the release of System 7, in the same classroom De Anza Community College, which is January 24, 1984, was presented the first Macintosh, Apple introduced several new products, and for the first time, touched the confrontation with Windows. In parallel, on two screens, with witty comments gathered showed Windows 3.0 and System 7. The difference between one of the best operating systems of that time and system “for cattle,” as it is dubbed one of our friends who attended the event were, to put it mildly, not in favor of the latter. Windows 3.0, over and over again, looked ridiculous, ridiculously confusing and uncomfortable, in the process showing she repeatedly hang and “fall”, and clearly this wasn’t staged.

As one of the journalists who laughed at together with everyone in the audience De Anza College over Windows 3.0, “System 7 much better than Windows, but for the most part, buyers it does not matter, because PC can now roughly the same, and much cheaper.”

The fact that the public comparison of the two systems said the same thing: ignore the Windows was impossible. Began the new decade.

The explosion, the phase of the first

Contemptuously describing the main competitor in public speaking, the top generals of the Apple was in a state close to panic. It was completely wrong, the worst won best, sales fell, which reduced profits, but even if it was possible to bring to the end, no sales, no profit, no longer growing.

What to do with all this? Divide the Apple into several independent from each other. Something similar was already done in 1987, when the development of applications handed created for this subsidiary of Claris, which also wanted to make an independent, but changed his mind.

Analyzing the source of the threat, Apple’s generals have made an incredible discovery: but Microsoft does not develop or manufacture computers. Instead, it sells licenses for operating system installation and license holders competing with each other, providing her with a giant rapidly expanding market!

The project split the Apple Macintosh Company and AppleSoft Company, in fact all seriousness, were studied and discussed in secret meetings for several months. Of course, outside of an Apple found out about it before the project became a real project.

People warned Apple executives about the consequences of such a step: not necessarily as a result of this separation, the financial position of the platform generally improved, but even if it will improve in the long term it is doomed, as with innovations and technical revolution, the main advantages of Apple is finished.

The separation did not take place, the project was closed, but not because of the warnings. People’s opinions of Apple have ignored. Just found out that no one, including Chief Operations Officer (COO) of the company, during the greater part of 1992, replacing distracted on the presidential campaign of bill Clinton, John Scully, had not the slightest desire to join the Macintosh Company. Everyone wanted to get into AppleSoft.

Know how to name COO of the company in 1992-1993? Michael Spindler. Which in 1993 was headed by Apple Computer.

Майкл Шпиндлер (справа)
Michael Spindler (to the right of the reader) talks to the press.

The salvation of the division, assuming that the unknown new problems will razreshimye those who already have been postponed for the future. The company made other sudden movements, reminding the flock of rodents under the influence of ultrasound.

Here is an example.

Robert Poet, one of the Deputy COO had set about restoring order in the sales and promotion of Apple. The author of this strategy, Michael “Diesel” Spindler, watched these actions passively and detachedly. To the sales organization had to do something, but Poet, in fact, easily and carelessly destroyed the current system.

In those days, when there were no online stores, and network designers purchased equipment not yet exist, the system Apple was quite effective and worked more or less. Apple does not sell their products directly, except for strategically important clients in especially large sizes.

The company relied on a network of independent marketing companies (IMC), responsible for specific geographic or political regions. IMC had no right to sell Apple products directly to buyers, they were destined for more important and interesting task: the organization of a dealer network, promotion of Apple products, technical support, training, repairs and many, many more.

The sale involved the dealers, in the terminology of the Apple “Value Added Resellers” VAR. Here their main task was to sell Mac ‘and the periphery. With each sale VAR received 15-20 percent of the selling price. 10 percent from each sold their dealers Mac ‘and transferred to the IMC. And VAR, and the IMC approved by Apple Inc. The license of VAR could be obtained solely on the performance of the IMC, which could revoke the license at any time.

I had the opportunity to work in a VAR, and in IMC, and I could tell a lot about the peculiarities of life on the different branches of this giant pyramid, but…

It’s a little oftopik. In the 80s Apple and its IMC has made considerable efforts to build this system, and she was brought to account Apple the lion’s share of its revenue. It was like a root system, let’s say, Apple. It is absorbed from the soil nutrients and turned them into a wonderful (usually) fruit.

Robert Poet made the decision to revoke the dealer license dealers annual turnover will be below 500 thousand dollars. More than half of the dealers in the Outback on that turnover could not even dream of. Sales growth due to that decision not happened, rather the contrary.

In response to criticism, Mr. Poet said that 20% of Apple dealers bring 80% of profits, and that the other 80% of the dealers have to leave.

Fortunately, to bring those plans to its logical end, he was not given. Somehow restored the status quo.

Such hysterical antics were many, none of them had any positive influence on the situation. The situation escalated and became explosive…

About its future, about the big Bang, in the continuation.

Leave a Reply

Your email address will not be published. Required fields are marked *