Watching Apple contains summaries of news from Apple Computer. This month’s topics are:   1. Apple and Chiat/Day Reunited   2. 20th Anniversary Mac and eMate 300 Win Design Awards   3. MacOS 8 Sales Extremely High   4. Apple Acquires Power Computing     1. Apple and Chiat/Day Reunited On 8 August 1997 Apple Computer, Inc. announced that it has completed its advertising agency creative review and has selected TBWA Chiat/Day to work on Apple's advertising agency. Terms of the agreement were not disclosed at that time. Many Mac fans will remember that Chiat/Day created the all-too-famous "1984" commercial. "We are extremely pleased that TBWA Chiat/Day will be joining Apple as we move our advertising forward through an exciting time in the market," said Guerrino De Luca, Apple's executive vice president of Marketing. "Apple's renewed focus on its key customers and markets combined with TBWA Chiat/Day's cutting-edge creativity and true understanding of our brand sets the stage for extraordinary advertising." "Our feelings about Apple are personal and professional. This is a very special brand. The way Steve Jobs views the role of computers in the world is what Apple is all about. We want to help tell that story," said Lee Clow, chairman, TBWA Chiat/Day and chief creative officer worldwide. This announcement does not currently affect Apple's International advertising agency relationships. The Apple Computer win caps off more than $400 million in new billings for TBWA Chiat/Day since January, 1997, from Taco Bell ($200 million), ABC Television Network ($40 million), Phillips-Van Heusen ($40 million), Samsonite ($30 million), The Weather Channel ($10 million), Prodigy ($10 million) and Novartis ($10 million). TBWA Chiat/Day is part of TBWA International, an Omnicom company and the 15th largest advertising network in the world, with offices in 57 countries. TBWA Chiat/Day clients include Nissan, Taco Bell, Polygram/Gramercy, ABC Television, Infiniti, Seagram, Absolut, Energizer, Champion, Sony PlayStation and New York Life.     2. 20th Anniversary Mac and eMate 300 Win Design Awards On 24 August 1997, Apple Computer, Inc. announced that its limited edition 20th Anniversary Macintosh and eMate portable computer for students have been awarded the Best of Category prizes for Consumer Product entries for I.D. Magazine's Annual Design Review. Both products were among the winners honored at a private gala reception for leaders of the design and business communities in New York last week. The 1997 I.D. Annual Design Review is the largest interdisciplinary design competition in the United States. This year, a record 2,500 entries were received from designers and businesses across North America and Europe. Entries in eight categories--consumer products, furniture, equipment, environments, packaging, graphics, student work, and concepts--were reviewed by distinguished juries comprised of professional designers, manufacturers, academicians, and technology experts. According to I.D. Magazine Editor-in-Chief Chee Pearlman, both products break new ground in the area of consumer product design. "Our judges were a bit awestruck in terms of both systems' potential as tools of the future. The innovative designs of both the 20th Anniversary Macintosh and the eMate successfully dematerialize what we typically think of with a computer, yet you still get the sense that technology is really at work when you use them," said Pearlman. Designed by Apple's senior director of Industrial Design Jonathan Ive, the 20th Anniversary Macintosh is a limited edition computer that rethinks the desktop paradigm. The flat panel display, high-end built-in speakers by Bose and front-loading CD-ROM drive are housed within a sleek, thin casing supported by a semicircular foot that folds to become a handle. A thin keyboard with a leather palmrest and detachable keypad can be slid under the unit to free up deskspace, while the power supply and subwoofer are in a separate unit that can be placed on the floor. Integrated into the system are 2MB of video memory, 32MB of RAM, a 64-bit multimedia and graphics accelerator chip, built-in video input, and Apple's TV/radio system. Ive explained, "The I.D. award is a positive affirmation of the design directions that Apple is taking for future products. The 20th Anniversary Macintosh and the eMate are aimed at very different users, but share a common design approach. That is, we want to provide the product utility specific for each audience, yet also offer emotionally meaningful product designs that elicit a positive reaction from our customers." Apple's eMate, designed by Apple's senior designer Thomas Meyerhoffer specifically for students, exhibits this design objective for the education market. Featuring a clamshell-like translucent package, the eMate features pen or keyboard-based input, battery life of up to 28 hours, light weight (under 4 pounds), Internet access, and is designed for compatibility with both Mac and Windows networks. The eMate features the Newton operating system and comes with Newton Works, a set of built-in applications that includes a word processor, drawing program, spreadsheet, and graphing calculator. I.D. Magazine is America's leading publication on the art, business, and culture of design. Since 1954, I.D. Magazine has been the voice of design, covering products, graphics, environments and, most recently, interactive media.     3. MacOS 8 Sales Extremely High On 8 August 1997, Apple Computer, Inc. announced that more than 1.2 million copies of Mac OS 8 have been sold since the product's retail introduction on July 26, quadrupling the Company's expectations. News of the successful sales figures were revealed by Apple director and co-founder, Steve Jobs, in a keynote address delivered this week at Macworld Expo in Boston. Mac OS 8 is the latest operating system software release for the Macintosh and Mac OS compatible systems--and the most significant upgrade since 1984. Several major retailers, distributors and catalog sales companies have sold out of their Mac OS 8 stock during the first two weeks of availability — resulting in the most successful sales performance ever for an Apple software product. Sales continue to surpass Apple's projections with the channel reporting strong demand and ordering substantial additional units. Apple hardware sales have also benefited from Mac OS 8's availability with dealers in certain locations reporting a more than 30 percent increase over the introductory weekend. Apple's wholly owned subsidiary, Claris Corporation, a leading vendor of cross-platform software for business, education, and home, is responsible for retail sales and distribution of Apple software products. "The retail excitement around Mac OS 8 is outstanding and beyond our most optimistic plans," said Stuart Illian, director of Apple Software Marketing at Claris. "We're seeing strong demand from the entire range of Mac users, including home users, and the appeal of Mac OS 8 is propelling strong retail traffic for Mac hardware and software to high levels." "We are extremely pleased with sales to date for Mac OS 8 and feel they reflect the significance of the product to Macintosh customers," said Guerrino De Luca, executive vice president of Marketing, Apple Computer, Inc. "Mac OS 8 is a major system software upgrade that gives users a dramatically improved user experience, best of class Internet integration, a faster, multi-threaded PowerPC-native Finder, and industry leading multimedia technologies--all with classic Macintosh ease of use. Sales have significantly surpassed all our expectations and we expect the trend to continue." As of this date, 31 August 1997, sales of MacOS 8 are estimated to have reached 2.5 million.     4. Apple to Acquire Power Computing for $100M On 2 September 1997, Apple Computer, Inc. announced that it will acquire Power Computing Corporation's core assets in a deal valued at $100 million in Apple common stock. Included in the key assets Apple will acquire are the right to retain key employees with expertise in direct marketing, distribution, and engineering; Power Computing's customer database; and the license to distribute the Mac OS operating system. "Power Computing has pioneered direct marketing and sales in the Macintosh market, successfully building a $400 million business, " said Steve Jobs, Apple Board member. "We look forward to learning from their experience, and welcoming their customers back into the Apple family." "Power Computing is grateful for the tremendous support and encouragement we have received from the entire Macintosh community," said Stephen Kahng, Power Computing founder and CEO. " We believe that in our small way, we have helped to make the Macintosh stronger, and that the spirit of Power will live on." Power Computing will retain the Power Computing name and has stated it will sell Mac OS compatible computers through Dec. 31, 1997. Apple will provide ongoing Mac OS support to Power Computing customers and Power Computing will continue to provide hardware and warranty service to its customers. Erik J. Barzeski erik@applewizards.net      http://www.applewizards.net/