Apple Computer Inc’s response to falling profits is to turn around the business model it started two years ago and feel its way along new routes to market (CI No 2,123). Out goes the concept of units like business, education and consumer aligned internationally rather than by country. Back comes the notion that a local country may really know what’s best for itself. In the UK, Mike Newton, recently recalled from heading up the European education unit, now oversees the personal computer division but retains responsibility for the entire UK operation. Each unit is expected to act more or less autonomously, and aggressively grab market share for itself. The result of a multi-pronged attack, rather than a single Apple Mac is best approach may either weaken overall market share or mean Apple starts to infiltrate new areas effectively. There is likely to be a hardware and software catalogue in the UK by Christmas, and more direct sales are anticipated: this began three months ago, with sales to KPMG Peat Marwick and Ernst & Young. Apple will also turn to two-tier distribution, as it has for the Windows products introduced this spring. Around 50 top dealers will still buy direct, but others will buy from distributors – which ones has not yet been specified. While morale is not likely to be lifted by 30 redundancies in the UK forced from all levels, including the long-standing product marketing manager Jane Burley, the arrival of the much-needed European ordering system next month should facilitate and speed up stock control and deliveries, and perhaps avoid some of current inventory headaches.
