dg1v+@andrew.cmu.edu (David Greene) (02/02/91)
(from Dow-Jones without permission) Subject: Next Scores Big With Campuses On Second Try Date: Fri, 1 Feb 91 Steven Jobs's closely held personal computer company, Next Inc., was written off by most competitors after its first product flopped two years ago. But now, his latest computers are selling briskly on college campuses, seeming to fulfill a goal he set five years ago when he stepped down as head of Apple Computer Inc. Jobs started Next with the idea of supplying college educators and students with an advanced computer capable of mixing huge amounts of audio, video and text. Jobs vowed to deliver the electronic equivalent of an entire library of English literature or a sophisticated chemistry lab. But his original machine bombed because it lacked power and software application and, at $6,500, was too expensive. Jobs, who oversaw the creation of Apple's Macintosh computer, seems to be showing signs of his old spark. Next's newest models, which began rolling off the assembly line late last year, contain state-of-the-art hardware and sophisticated software. They are selling to students and faculty for as little as $3,000, less than half the price of the original machine and much less than comparable computers sold by rivals. Next's latest models haven't sparked as much enthusiasm in the corporate market, which is crucial to long-term success. "We haven't felt the impact of those new products yet," said a spokesman for Businessland Inc., which is Next's main distributor to corporations. Still, Jobs said that half of 4,000 new models he's shipped in the past two months have gone to business. While those unit volumes are just a fraction of Apple's monthly sales, Jobs said Next is posting monthly sales equivalent to an annual rate of more than $100 million. Vicki Brown, an analyst at International Data Corp., thinks Next is on target to sell from 36,000 to 44,000 units this year. University customers are the most eager buyers. Jobs has deep ties with academics from his days running Apple. Some, who have stuck with Jobs through his recent ups and downs, say he is making good on his vow to set a new standard for academic computing. "I think he has met many of his original goals," said Brian Hawkins, vice president for computer services at Brown University. He said purchases of Next machines by Brown staff and students "have picked up considerably" in recent months. "Next finally has the machine it promised; that's fantastic," added Edward Barboni, vice president of information at Allegheny College. He thinks Next has staying power. "We've had opportunities to peek at Next's future products," he said, adding, "What's coming down the pipe is more good stuff." Such praise is good news for Jobs, but he acknowledges that parts shortages have prevented Next from taking full advantage of the situation. Shipments of the latest models were first held up by Motorola Inc., which makes the 68040 central processor for the machines. Then, output was slowed when the hard-disk drives used in the flagship model proved defective, forcing Next to switch suppliers. The limited availability of product has cost Next. "People have been holding off (buying) because delivery times are so far out," said Chester Rice, who manages the computer store at Stanford University. Jobs acknowledged that Next hasn't been able to meet demand, but said the company has solved its supply problems and now is reducing its backlog.