MACINTOSH

PRELIMINARY

PLAN

Macintosh Markets & Software Ranking Macintosh Organization, Staffing & Budget
Open Issues

Product Hardware Comparisons

-.:

Product Lines

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Introduced ietail Price Neight Vlicroprocessor Vlemory size )isplay :hroma iesolution Graprr!c3 memory Key~oard Numeric Pad Pointing Device ntegral Disks ~ddon Disks :apacity / Disk )Iots ~S232 ports )ther ports )ound ;Iock C Boards 1977 /78 $ 2500 15 to 30 Ibs 6502 32 to 64 k External Color& BW 280 x 192 8k bytes Builtin No 2 arrows 0 2 to 4 143 k bytes 8 0 Game I/O 1 bit No 6

Apple III
~~

Mac 1982 $1500 15to181bs 68000 64 to 128 k Built.in 9 BWonly 384 x 256 12k bytes Detached No Mouse 1 1 143 k bytes 0
II

1980/81 $ 4500 26 to 40 Ibs 6502 128 to 256 k External Color&BW 560x192 16k bytes Builtin Yes 4 arrows 1 1 to 3 143 k bytes 4 1 Silentype 6 bit aid Yes (?) 6

1982 $5000 + 45 + Ibs 68000 256 to 1000 k Built.in 12 BWonly 720 x 360 32k bytes Deta.ched Yes Mouse 2 0 850 k bytes 3
11

2
none 5 bit Yes 5

2
Parallel Deltamod Yes 10

Screen Size Comparisons

. . . . . . . . . . . . . . . . . . . . . .. .. ......... ,', .
.
' '

::::::::::::::
'

Apple '::::::::::: 'Ii .

:::::::::::::: 280x192 ::::::::::: ::::::::::::::. 8k bytes . ':::::::::: ...."0.. . .0 . . .. . ... . ",', . .. ....... .. .. ..

~l~..

384 x 256

12k b te s

:.: .

Disk Compatability

Between Products

143 k Bytes 16 sector

850 k Bytes 16 sector

143 k Bytes 16 sector

Apple II Apple III Macintosh

Lisa Doublemint

Card plugs into Lisa slot and 143k byte disk drive, Lisa can then read & write Macintosh,
VLC, Apple II& Apple III diskettes,

VLC

192

256

192

360

280 3:84

----- --------560

720

LISA 720 X 360

32K bytes

MAC 384 X 256

12K bytes

All 280 X 192

8K bytes

Alii 560 X 192

16K bytes

6
$5000

Clustering of Retail System Prices

IBM Displaywriter, LISA, Wangwriter ~ Cromemco, North Star

1:];;]:4
I[]E!]
,,",'''''''''''' JI1'" 1'fI ,

4
$3000

>N

$1500
1

$500

HP85, IBM "chess", Xerox 820 TRS3 ~, Atari 800, CBM 3020, FUJitsu, NEC 8001, Sharp, Oki, etclI" Osborne 1 .u .... . MaCintosh VLC
u
I \'

. ............

........

I:::::::::~~:~:~::~::::::::I
("'sancH""
:'\

V IC, TRS Color, Hand Helds ...

'"''''''''''''

Notes: Observe that everyone is introducing products in Band 3 (Apple II's band). Also, the upper end of Band 4 is really $10.12,000 today, but I expect it to fall to the $5000 level in '82, I expect LISA, IBM Displaywriter, Wangwriter, etc. to lower their prices to just under the $5000 wire, I currently know of no products being developedby competition for Band 2 (unfortunately this doesn't mean there arn't anyr One would expect serious D business customers will move up to Band 4 and the job of Macintosh and VLC is to migrate the remaining Band 3 customers down to Band 2, leaving Band 3 manufacturers out in the cold!!

MACINTOSH

PRELIMINARY

PLAN

Overview

Apple Product

MacIntosh Markets & Software Rankin Macintosh Organization, Staffing & Budget Open Issues

TM Actvctntage of ct Proctuct Line

ts that
E~h ImtividuaJ Proa.w::t Does not have to Do EverythJ~.

(lA,lLd,

tOMY is the first MY of the rest of your ~ife...)

PRODUCT LINE

II=: tI r=
oC
19n/78 $2000 to $2500 15-30 Ibs 1980/81 $4500 26-401bs 1982 $1000 to $1500 15-18 Ibs 1982 $6000 to $7000 45+ Ibs 6502 (1 MHz) 32 to 64K bytes 6502 (2 MHz) 168000 (8 MHz) 128 to 256K bytes 64 to 128K bytes 68000 (6'MHz) 256 to 1,000K bytes External (look-alike) color or B&W 560 X 192 16K bytes Built-in, 9" B&W 384 X 256 12K bytes Built-in, 12" B&W 720 X 360 32K bytel'

Year of introduction current retail price weight

Microprocessor memory size

Display CRT External croma color or B&W graphics resolution 280 X 192 graphics memory 8K bytes

Keyboard numeric pad pointing device

Built-in no 2 cursor arrows

Built-In yes 4 cursor arrows

Detached no mouse

Detached yes mouse

Slots built-in I/O sound

8 game 1/0 1 bit speaker

4 0 1 RS232, silentype 2 RS232 6 bit speaker 1 bit speaker

3 2 RS232, Parallel delta-mod speaker

48K All plus disk w/controller monitor, 9" B/W software

1530 645
150

CONFiDENTIAL

150
Total $2475

.~
=0

128K Alii including information analyst package and 12" B/W monitor

4690 Total $4690

II

---B

-8
o

256K LISA w/software Total 6000+

64K1128K Macintosh w/software Total $1000 to $:1500

!

Macintosh Positioning

Imagine two posters next fall, the first appearing In retail dealers and Sears, The message: IIApple II has evolved into two new products, each one the best in its class and both low cost. Buy one", Or both !!II
I I I

Apple II
II lUll 11IIII 11II1111II11

THE MOST SUCCESSFUL BUSINESS TOOL FOR THE 80's

THE MOST SUCCESSFUL PERSONAL COMPUTER IN THE WORLD BEARS FRUIT

And a second poster for LISA dealers positioning MAC as IIL1SA's younger brother"

And Its Younger Brother" '"

c::!~~
$5000

Prod~meline LISA I

.,
AlII .
,

$4000

A 1:11

M ~

$3000

LISA 2

All

$2000
MAC

???
I I ,

'1IIIiIP'

$1000
.

VLC I

MAC2
~

Color
.
~
I

1981

1982

1983

1984

1985

Notes: 1, Prices are retail prices for a "usable" system including a disk and some software, but not including a printer, 2, Lisa 2 is a least as powerful and runs all Lisa 1 software. ~ , " 3 ??? IS a product opportUnity, Any Ideas??
I

4, Macintosh 2 runs all Mac 1 software, incorporates a flat panel display and is physically smaller and lighter, 5,
~

Color
~

is a product opportunity for a lowend color computer (VLC 2 ??), Any' Ideas??

Market Segment Emphasis

LISA Managers

MAC

Apple II/VLC
IIIIIIIII!III!I!IIIII!I!I!IIIII!III!III!

Apple III
',"
',',,'

!1111 !1!1!111!111!1!1!1!1!1!lllll!

!il!

!il!

il

Se c retari es
Professionals 'ery Small Business Scientific/ Industrial
I1111111111I1I1111111111111111111111I11111111111II

IIIIIIIIIIIIII!IIIIIIIIIIIIIIIIIIIIIIIIII:I!

Elementary High School College Home Home Business

IIIIIIIII!I!IIIIIIIIIIIIIIIIIIIIIIIII

SOFTWARE: EVALUATION
Software:

OFFICE
I

EDUCATIONAL

HOME
Consumer Home Home Business

Total

Manager / Professional

Low End Clerical/ Secretarial

Colll~geWord Prllcessing

High

Schools

MacWriter MacFile MacCalc Mac Basic MacSketch MacGraph Games Typing Tutor Telecommunications Personal Finance Manager Mail List PASCAL Tax Planner Calendar Sesame St. SmallTalk

3 1 1 3

3 1 1 3

16 14 12
13

3
3 1

3
3 1

3
2 3

3
2 2 1 2 1 1 2 3 3

2
3

1
2 1 1 1 1 2

2
1 3 2
1

2
1

3
1 3 2 3

11 10 13 10 10 11 11 9 10 ' 10 8 9

2
1 2

3
1

2
1 1

1
1 3 1 1 1 3

1
1

3 3 1
3 2

1 1
2 1 1

2 1
1 1 1

1
2 2 1
1

2
2

1
l'

3
2

OFFICE RELATED

Manager / Professional "Every Manager's Tool" Positioning Every day, more managers rely on computers to help perform their functions effectively and efficiently. MAC makes it possible forany manager to experience the automated office with minimum investment of time and money. MAC will be a rewarding first computer experience. "Little Lisa" Mark\:t MAC will substantially increase the productivity of every manager by providing some of Lisa's advanced capabilities at an entry level price. 1) With promotion and associated increase in responsibility, a manager will be ready to graduate to a Lisa. 2) Managers already using Lisa can use MAC when away from the office (Traveling, Home). Applications Modeling & Forecasting Communications, Data Management, Document Preparation, Time Management MACCalc, MACBASIC, Communications Software, Personal DBM, MACWriter, MACGraph, Calendar Japanese, Xerol( 820, IBM, Radio Shack, Commodore Apple Dealers <2,000 Same as "Every Manager's Tool"

Low End ClericaVSecretarial

MAC can help every secretary grow into an area associate. With '.1acintosh secretaries can take on more interestins assignments and more responsibility which can make the manager more productive.

Document Preparation, Communications, Form Fillin, Some Data Management, Time Management MACWriter, MACGraph, MACCalc, Communications Software, Calendar WangWriter, DisplayWriter, Xerox 820, Radio Shack, Commodore NAD, Office Supply Stores, Apple Dealers, (Sears1) <1,500

Software

Same as "First Computer" Market

Competition

none

Dis~ribution Acceptable Price Range (with software, without printer)

Lisa Dealers <2,000

EDUCATION

College Student Word Processing Positioning In colleges, MAC will revolutionize paper writing much as calculators revolutionized number crunching

High Schools As Word Processors are replacing typewriters in the real world, students need to learn word processing, not just typing. MAC will help the student of the 80's learn the tools of the 80's and prepare Computer Literate students for colleges and employment. Typing, Computer Literacy. Science courses Typing courseware, MACBASIC. PASCAL, Science courseware Apple II, Commodore. Tandy, Atari Apple Dealers, Direct

Applications Software Competition Distribution Acceptable Price Range (with software. without primer)

Paper Writing, General Homework preparation (Computer Literacy) MACWriter, MACSketeh. MACBASIC, PASCAL none Direct to Colleges

<1,000

<1,500

Macintosh Market (U.S. only)

Office Related Manager / Professional Low End Clerical/College Secretarial

Education Student WP High Schools Consumer Home

Home Home Business

Every "Little Lisa" Manager's Market

IQQl

Total Available Market 1985 Industry Penetration '82'85 Industry Sales MacIntosh Share MacIntosh Sales '82'85

9M .2 1.8M 20% 360K

4M

4.7M ,3 104M 25%

11.2M .1 l.lM 50% 550K

19.000 (schools) ,35X20 units 133K 20% 27K

16M ($35K'+ ) .2
,

205M" .2 500K 33% 167K

3.2M
II

10% 320fC

480K

350K

Office Total: 1.190K

Education Total: 577K

H(}me Total: 487K

Total MacIntosh Sales '82-'85

2254K (563K/yr.or47K1mo.)

2:1 ratio to Lisa Sales (in offices which buy a Lisa). (300KX.8X2) Worldwide Amway, Shakle~, Mary Kay, Avon, Fuller Brush, and Tupperware.

HOME

Consumer Home Positioning The family Macintosh facilitates management of personal finances and records, makes it possible to take advantage of convenient services such as home banking and home shopping. MAC also provides Entertainment and Education for every member of the family.

Home Business The powerful tools the big businesses have been using to decrease their paperwork and increase effectiveness are made affordable to every home business by Macintosh. MAC simplifies the task of the headoffice, by allowing every home businessperson to use the same advanced means of running his business. Correspondence, Inventory Control, Bookkeeping, Order Entry, Personal File Systems. Communication with Central Office. MACWriter, Inventory Control, OEM. Mail List. Single Entry Ledger, Communications Software

Applications

Managing Time and Money, Home Shopping, Correspondence, Animation, Games, Computer Literacy, Education Information Services, Personal Finance Management, Personal OHM, Mail List, MACWriter, Space Shuttle, Chess, MACSketeh, Other games, MACBASIC, Sesame Street Software Apple 11,Japanese, Atari 400/800, Radio Shack color computer, Commodore (VIC 20) Retail outlets (Macy's, Sears, etc.), Apple Dealers <1,000

Software

Competition

Radio Shack. Alari 800, Commodore, Japanese Direct to Sponsors (Avon, Amway. Mary Kay. Fuller, Insurance, etc.), Apple Dealers <2,000

Distribution

Acceptable Price Range (with software, witllOut printer)

IJ
Introduction

1982

"Get the Train out of the Station"

Software 1. Mac Writer 2. Mac Calc 3. Mac Basic Hardware 1. 64K1128K Mac Intosh 2. 2nd floppy disk drive 3. R5-232 cables

Ql, '81

Q3-Q4
1982

4. Mac Graph 5. Mac Sketch 6. Mac Pascal

4. 300 baud Mac Phone 5. R5-232 Mac Net 6. Mac Intosh w/o disk drive

Q2

1983

7. Mac Dow Jones 8. Mac File

Curatorial staff at the Computer History Museum have determined that the chapter header for this section is missing. It should read: Macintosh Organization, Staffing and Budget

Steve Jobs Sharp

I

I
HARDWARE Rod Holt
(.

I MARKETING SJ Acting Ferris Hoffman

I

1 SOFTWARE Bud Tribble Daniels Dennmar Hertzfeld

I

PUBS/NPR Jef Raskin ..... E,sE!.!JPza, Howard

Alexio

I
INDUSTRIAL , DESIGN Jerry Mannock Askeland
.
,~

Wigginton Nicholson Riddle

Crow Horn Kottke

Oyama Roots

Smith

MACINTOSH ACTUAL PRODUCTION ENG.

HEADCOUNT
NOV

1981
DEC

JUNE

JULY

AUG

SEPT

OCT

(MGR) TAIWAN LIAISON KEYBOARD/ DISK LIAISON

o
o

1
1

DOCUMENTATION

(ANALYST)

(DRAFTER)

(MISC)

JIGS & FIXTURES

o o

(DESIGN/PROTO)

QA

(MECH & ELEC)

TEST EQUIP SPECIALS STANDARD

o o
o

1 (MGR) 1 (ENG) 1 (ENG) 2

4 (TECH) (TECH) 4 (ENG) (ENG)

(ASSOC) 2 (ENG)
3

SOFTWARE TEST/ MAIN SUBTOTAL

o o o
2

4
14

..................................................................................

... ......... . ..... .... . .. ................. ................... ......

:::I a _::a :a.=".::I::aI=:II::::I::::;::::I.;a :lI:::I:&.:a:a;;l:l:ll_==- =====-a:a

12

22

.
.=._.
=a.*

a.a:ll.:II~=-

=.:a:g_:::I.=:II.=lI:I=

::a:a:a:a:ll;a_a.:_.:a

GRAND TOTAL
__ :a :::a:a.==:a:::l::ll==

16

18

28

39
a

47
a.=:a =:::I

52
=a:::l:a.:::I:::1

55
a

63
:II:au

:aa.:a __ :azaa:ca=.::&:a:::a=====-::za::J:::I.:a

MACINTOSH ACTUAL ADMIN

4

HEADCOUNT

1981

JUNE
/

JULY

AUG (ASSOC)

SEPT

OCT

NOV

DEC

-------------------------------------------------------------------~----------------------------5

MARKETING

(PMM)

(PME) (ASSOC~

(PMM)
5

PUBS/NPR

234

(BASIC, DBM, OS, OEM PROGRAMERS)

II II 1,." II II

SUBTOTAL

7
II

10

13

14

15

15

ENGINEERING MAIN LOGIC BD SR RFI ENG VIDEO/POWER SUP

1 1 2
(MTS)

o
o
2 1

1 2 3

(ANAL ENG) (TECH) KEYBOARD

3

(SUPPORT ENG)

(SOFT/HDWARE) DISK

o
3

(HORN) PACKAGING 4

(TECH) 4.5 (DRAFTER)

(ANALOG/TEST

EQUIP)

(LAZLO)

SOFTWARE

3
(NUM)

7.5

8.5

(BASIC)

(BASIC) (OS)

....
SUBTOTAL

(DBM) (ASSOC) (DEMO) (MACWRITER) 23 25

26
26
I

,'

.
26

11

18
I

Macintosh Costing

- $ 397

Logic PC Board $ 139 Analog PC~CRT& Yoke 55 Floppy Disk Mechanism 40 Disk Analog PC Board 12 Plastic & Metal Housing 14 TOTAL MA IN UNIT

Manuals & Lit. Shipping Box Software & Manuals Power Cord Mouse TOTAL MISC

3 5
9

1 30

$ 260

$ 48

Keyboard Matrix with electronics Keyboard plastic Instruction cards Keyboard calJie TOTAL KEYBOARD

$ 17
5

2
1

.." .6

x '.

Assembly~ Test & IQC (3 hrs @ $20/hr,) $ 60 Tooling & Maint. 2 Production Engr, 2 TOTAL ASSEMBL Y $ 64
..:

:~
:~: .\:
'.'

$ 25

Distribution Margin Anaylsis

"'l1VI W

\11.......

IOU

"....

,..

1&

'fl

191 'VI

19! '."

Macintosh Retail Price

" 'fl

$995
'h'

$1095 $257

$1195

$1295
Ii I'r ".,

$1395

hi

$1495
Ii.

i"

....
$497

Operating Profit (assuming 40% cost of distribution and $400 cost.)

$197

$317

$377

$437

..........................................................................................................................................................................................

% Operating Profit

33%

39%

44%

__ ............................ __ ...........

49%2% 5

55%

Distribution Margin (assuming $800 Fasp)

20%

27%

33%

38%

43%

46%

SPECIAL TASK FORCE BUDGET

DEPT: 6500 6/30/81 SALARIES & FRINGE EXPENDABLE TOOLS OUTSIDE SERVICES OPR/OFFICE SUPLS TOTAL EXPENSES

ACTUAL Q2 75.61 0.25 0.21 45.48 133.08

FORECAST 1981 Q3 Q4 212.10 0.27 5.91 36.29 294.63 392.81 200.30 84.50 43.00 889.97

1982

Q1
610.26 20.40 6.00 99.00 931.84

Q2 708.29 296.50 84.50 53.00 1258.17

Q3 736.57 1.50 84.50 15.00 929.67

TOTAL 2735.64 519.22 265.62 291.77 4437.36

---------------------------------------------------------------

~ 1990 P 968

"ACINTOSH

OPERATING EXPENSES

fi

aea
788

~ 6ea
N
$

FORECAST

I 58 490
38

I zea s

189

JFftA"JJASONDJF"AftJ 1981-1982

MACINTOSH PRELIMINARY
Apple Product Overview Macintosh Markets & Software Ranking Macintosh Organization, Staffing & Budget

PLAN

I-=:-.J
1, Europe has not been given much consideration yet, Although the unit is being designed to meet VDE, etc. we still have much work to do for Europe (software, manuals, et al,) 2, We are designing our packaging to accept a doorless disk drive only. We feel Vennard will come through, Should we be taking this risk? 3, Who 'tIill manufacture Macintosh? Should we PCS7 7 should ??? S'Ingapore, AI ps." 4. Is our schedule realistic? 5, How do we get PCS to feel a "part" of Macintosh?

.",~-;,,:"..,-e:I""-"""'~

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