Getting help; high-tech firms find it's good to line up outside contractors; as fear of losing expertise fades, many now make only a part of a product; corporate alliances increase

Article Abstract:

IBM and DEC are two computer companies that can produce almost all of the parts needed in their products and yet they are also two of the worst performers in recent years. Throughout the 1980s, US companies advocated independence in the manufacturing industry. Companies were told that they should not rely on Asian manufacturers if they can produce the goods in the US. US production would help stir employment and foster expertise in the US work force. HP's success is an example that contradicts the popular US beliefs. HP chose to rely on a laser printing engine built by Canon Inc of Japan. HP's decision has proven to be a wise one because the company has been able to focus on printer software that controls how the text and graphics will look. IBM has decided to join forces with Siemens and Toshiba Corp after several years of independent production. Motorola Inc still successfully builds cellular phones on its own, but this is viewed as old-fashioned.

Radio & TV communications equipment, Computer peripheral equipment, not elsewhere classified, International Business Machines Corp., IBM, Hewlett-Packard Co., HWP, Partnerships, Digital Equipment Corp., DEC, Industry Analysis, Foreign Manufacture, Partnership

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Apple Computer's John Sculley discloses plans for new portables, other products

Article Abstract:

Apple CEO John Sculley says Apple plans to tighten its relationship with Adobe Systems Inc, loosen its ties with Motorola Inc and develop products for the growing notebook computer market. Apple currently uses Motorola microprocessors exclusively, but Sculley notes that Apple will eventually use reduced instruction set computing (RISC) processors, which are not Motorola's strength. Sculley also says that Apple plans to rely more heavily on Adobe software for its sophisticated computer printers despite using rival software developed with Microsoft Corp on its low-priced printers. Sculley plans to avoid repeating Apple's disastrous entry into the portable computer market in 1989 by developing competitive notebook computers. Sculley would not confirm that Apple will license its system software to clone makers, but did say that modifications to the Macintosh operating system are underway.

Computers, peripherals & software, Semiconductor industry, Computer software industry, Software industry, Product development, Microprocessor, Product information, CPUs (Central processing units), Operating systems (Software), Operating systems, AAPL, Adobe Systems Inc., ADBE, Product enhancement, MOT, Printer support software, Laptop computers, Apple Inc., Operating System, Strategic Planning, Licensing, Software Modification, Cooperation, Sculley, John, Notebook Computer

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Sun Microsystems' slump has endurance; internal operations problems leave firm reeling

Article Abstract:

Sun Microsystems Inc's slump in earnings reflect internal operations problems. The company has reported that the loss for the fiscal 4th qtr could reach $26 million, and they may not earn a profit in the current quarter as well. Loss in revenue is due to several factors. The company failed to stop hiring after sales slackened due to production and inventory problems. In addition, Sun's information system, which tracks inventories and other business data, is still not operating well. Some work such as accounting must be done by hand. A bigger problem for Sun is the overwhelming demand for its new, lower-priced Sparcstation 1, a fast desktop computer. Too many orders have caused shortages of parts such as color monitors. To make matters worse, customers are waiting to buy the new machine, causing a sales slump for other Sun products.

Supply and demand, Profits, Sun Microsystems Inc., SUNW, Employee selection, Inventory control, Sales, Computer Industry, Mismanagement, Hiring, Profit, Sun Microsystems SPARC (Microprocessor), Product Delay, Product introduction delays

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