[MD1] Apple Builds, Sells Different
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[MD1] Apple Builds, Sells Different

Apple Builds, Sells Different

Company Announces Build-to-Order and Electronic Commerce

The Apple Store: Powered by WebObjects

Apple Only Company to Offer All Core Products
Via Retail Stores, Resellers, the Internet

CUPERTINO, California--Nov. 10, 1997--Apple Computer, Inc. (NASDAQ:AAPL)
today announced that it will build and sell its computers in a new and
different way. The Company launched The Apple Store (http://www.apple.com/)
as part of its new distribution strategy that utilizes the Internet, along
with the Company's existing retailers and resellers to sell products. Also
introduced, new flexible manufacturing that will make the new Power
Macintosh G3 minitower and desktop computers (see separate release)
available on a build-to-order basis for Apple Store customers. Customers in
the United States now have three ways to buy Macintosh computers: through
the retail and reseller channel, through direct field sales in education,
and through Apple.

"We're changing everything we do: the products we make, the way we make
them and they way we sell them," said Steve Jobs, Apple's interim CEO. "For
years Apple has successfully offered direct sales to our education
customers. Today, by joining retailers and resellers to sell products to
the general consumer, Apple will be able to meet the needs of a greater
number of customers."

"Apple's Internet commerce efforts are designed to address customer demand
to buy directly from Apple and to be able to order specific configurations.
It is not a way to compete with our current distribution channels, but a
means to complement them. The Apple Store will be a neutral proposition as
far as pricing and product allocation is concerned," added Jobs.

Apple Only Company to Offer All Core Products Via Retail Stores, Resellers,
the Internet

The new distribution model makes Apple the only computer company to make
all its core products available through retail stores, resellers and the
Internet. Now customers will be able to choose from almost 400 different
Macintosh configurations, Newton mobile computers, accessories and some
software products, and order directly from Apple 24-hours-a-day. For
customers interested in ordering customized Macintosh G3 minitower and
desktop computers, they can choose the processor speed, RAM and video
memory, hard-disk capacity, monitor size and more with Apple's new
build-to-order capabilities. The first build-to-order computers available
from The Apple Store are the new Power Macintosh G3 desktop and minitower
systems. Other systems may be added in the future.

"We applaud Apple's efforts to grow their business and look forward to
partnering with them on their new 'store within a store' concept in our
retail locations, as well as on future projects," said Jim Halpin, CompUSA
president and CEO.

The Apple Store will tie manufacturing directly with sales and channel
demand, therefore providing one centralized means of managing all product
that is produced and sold to customers. Moving to a just-in-time
manufacturing model, Apple expects the new flexible process to
significantly reduce inventory and operation costs, strengthen inventory
and order management, improve customer response time and increase
profitability.

The Apple Store: Powered by WebObjects

The power behind The Apple Store is that it's not just a static web site:
it's an application created with Apple's market-leading web development
platform, WebObjects. The Apple Store relies on a new generation WebObjects
application to provide a secure, high-performance foundation for changing
the way Apple does business on the Web. Most important, the WebObjects
application behind The Apple Store supports rapid changes to product lines
and merchandising strategies, helping Apple optimize the Store's
effectiveness. WebObjects, a technology developed by Next Software Inc.,
the company founded by Jobs and acquired by Apple in January, was used to
build Dell Computer's original online store.

Shopping at The Apple Store is easy and once a customer order has been
placed, Apple will send a confirmation email. In-stock products can arrive
as quickly as two business days. Build-to-order products will ship about
two weeks after order is processed. Apple Store orders made via the
Internet must be paid by credit card. The Apple Store ensures maximum
security for Apple customers using industry-standard encryption. Orders can
also be made via fax, mail and phone using cashier's checks, money orders
and credit cards, and customers ordering by phone can also apply for an
Apple Loan.

Apple Computer, Inc. ignited the personal computer revolution in the 1970s
with the Apple II, and reinvented the personal computer in the 1980s with
the Macintosh. Apple is now recommitted to its original mission - to bring
the best personal computing products and support to students, educators,
designers, scientists, engineers, businesspersons and consumers in over 140
countries around the world.

Katie Cotton
Apple Computer, Inc.
(408) 974-7269
email: katiec@apple.com

Tami Begasse
Apple Computer, Inc.
(408) 974-3156
email: begasse@apple.com

David Krane
NRG for Apple Computer
(650) 827-7081
email: david@nrgpr.com

 

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