Computer fires confound Apple at crucial time

Article Abstract:

Apple's Powerbook 5300 laptops catch fire as workers recharge the batteries. The problem presents another obstacle to Apple, which announces that 4th qtr 1995 earnings will be markedly lower than anticipated. Apple's 1995 sales are down because of the unavailability of PowerPC-based systems. Apple's unfilled orders reached $1 billion at the end of 3rd qtr 1995. The company's market share declined to 8.1% in 1994, down from 9.4% in 1993. Apple historically has difficulty predicting product demand accurately and suffers from a lack of talent at the executive level. The Powerbook failures cut especially close because Apple was considered the chief innovator in portable computing. The lithium ion batteries in the Powerbook come from a Sony subsidiary and are larger than other commonly used lithium ion batteries. Apple is recalling the laptops and will replace the batteries with heavier, shorter-lived nickel metal hydride batteries.

Product defects and recalls, Microcomputers, PowerPC based computers, PowerPC processors, Product recalls, PowerPC-based notebook, Product Recall, Product Information, Apple Macintosh PowerBook 5300 (PowerPC-based notebook)

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No sign of shift in talks on Apple-Sun merger

Article Abstract:

Rumors regarding Sun Microsystems' imminent acquisition of Apple Computer remain unconfirmed. Sun CEO Scott McNealy refuses to discuss the company's plans, but other executives suggest that no deal is possible unless Apple agrees to Sun's estimate of Apple's stock value. Sun assessed the value of Apple's stock at a mere $23 a share and based its only specific offer on that price. The seriousness of the offer and Apple's perceptions is uncertain since both companies remain silent about the negotiations. Sun's bid of $23 is less than 25 cents a share above the stock's book value and well below the recent Nasdaq trading range. The assessment is based on the potential value of the shares later in the year when a merger would be close to completion, according to an executive close to the discussions. Further, many industry analysts and executives suggest that the urgency conveyed in the media does not actually exist.

Mergers, acquisitions and divestments, Sun Microsystems Inc., SUNW, Company Acquisition/Merger

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Apple vows to remain independent; quarter loss expected to exceed $69 million

Article Abstract:

Apple has vowed to remain an independent company and has attributed recent speculation about a possible merger with Sun Microsystems to making the company's bleak financial outlook even less appealing. Customer uncertainty is expected to contribute to 1st qtr 1996 financial losses that are likely to exceed the $69 million loss reported for the 4th qtr 1995. Apple officials adamantly refuted any mention of merger talks, but Sun's CEO Scott McNealy is unwilling to acknowledge that merger discussions are over. Apple's stance provides the new chairman, Gilbert F. Amelio, with some time to implement turnaround strategies. Many industry analysts expect Amelio to implement a major reorganization process, which is likely to involve more layoffs and the possible sale of businesses.

Planning, Company business planning

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