Crunch decision for Apple as Jobs unveils super Mac plan

The interim chief executive of the computer firm Apple, Mr Steve Jobs, is scheduled today to announce a new plan to shake the company out of the economic doldrums. Sources said last night that Apple, which employs 1,500 people at its Cork plant, would take its cue from rising star Dell.

Mr Jobs plans to announce a direct sales strategy like the one that has been so successful for Dell Computers, according sources close to the company.

The California-based Apple Computer will also bring out super-fast computers at competitive prices, and is prepared to put out an inexpensive, stripped down network computer.

The Wall Street Journal reported last Friday that Apple and Oracle, the world's leader in database software, were considering an alliance to create a Macintosh NC for Internet users and small business customers.

Apple declined to comment, other than to release a statement that today Mr Jobs "will unveil some important and exciting changes, not only to the product line, but to the way the company does business".

Mr Jobs, a co-founder of Apple, was dismissed in 1985 but returned as interim head on September 16th. He has consistently said that he has no intention of re-taking the reins, and reiterated that determination on Wednesday.

Apple, which made its name by developing user-friendly software, has been in trouble since the larger and cheaper Microsoft revamped its operating system to make it easier to use. Macintosh's revenues for the fiscal year which ended September 31st, 1997 were $7 billion (£4.8 billion), from $11 billion two years previously.

And its market share has shrunk from a nearly 5 per cent early in the year to just 3.3 per cent by mid-year.

Mr Jobs has taken other steps in hopes of getting Apple growing again, including shuffling the board of directors and allying with arch enemy Microsoft.

The decision to move toward direct sales and build-to-order computers was inspired by Dell Computers, which has eliminated middlemen and slashed inventories to a minimum.

Dell is able to sell computers for 15 to 20 per cent less than competitors.

Its soaring sales have shaken up the world's largest PC builder, Compaq Computers, which has not eliminated intermediaries but is spending more energy staying in touch with buyers.

Compaq's aggressiveness has paid off, pushing prices for multimedia PCs down to less than $1,000.