Apple Computer Inc chief executive Michael Spindler last week held court in Cupertino, calling local journalists in to deliver a blistering attack on low-cost personal computer manufacturers, and firing a broadside at Microsoft Corp’s Windows95. He dismissed Packard Bell Electronics Inc as an el cheapo packeteer. He derided Intel Corp for continually slashing prices on its microprocessors and forcing personal computer manufacturers to cut their prices in turn, which means, he says, that they have to slash their research and development budgets, stifling innovation and true competition. He was also harsh about Intel’s policy of building motherboards OEM, saying that Intel’s control over the design should be investigated by the anti-trust authorities, and suggested that its selling motherboards to Dell Computer Corp, Gateway 2000 Ltd and Packard Bell had almost tanked AST Research Inc and certainly hurt Compaq Computer Corp. Who are we competing with on price? he demanded, slapping the table with his pa lm. The guys who are dumping volume and getting 15% return rates? We’re not going to ship stuff that doesn’t work. Suggesting Apple would never sacrifice its high quality just to compete on price alone, Spindler said Apple would not cut its research budget further – but it would likely not increase it either, so that it can afford to offer competitive, but not rock-bottom prices. Of Windows95, Spindler said We don’t think it offers anything the computer industry hasn’t seen yet. He conceded that it cleans up some inefficiencies of the operating system and offers other improvements, but warned that the reception for Windows95, particularly in the corporate sector, could be cautious, although consumers will rush to buy it – neophytes will rush to anything they can. He also described many computer consumers as lemmings. On Apple’s independence, he said The rumour-mongers have gone on and on, but we are not for sale, adding that talk Oracle Corp had been in talks was totally false.
