BUSINESSWEEK ONLINE: AUGUST 28, 2000 ISSUE

Readers Report

Does Steve Jobs Have the Vision to Keep Apple Fresh?

What is most striking about Steve Jobs in ''Apple'' (Cover Story, July 31) is his steadfast dedication to his personal vision. The early Macintoshes were eye-catchers because of their operating system and their ease for the end user. With his NEXTSTEP, Jobs took the concept of end-user ease to the next level. I am a Unix lover, and I thought that NEXTSTEP was an absolute joy. Where most other Unix systems had huge overhead to maintain, this one took the best of the Macintosh computer and married it to network design and application development. The only problems were the huge price tag and the lack of support from the manufacturers of central processing units.

When Jobs returned to Apple Computer Inc., it seems he followed the same vision. The iMac did to the Internet what the Mac did to computing--making it easier to use the Internet and access multimedia technology. What is Jobs trying to do now? Is this a case where he wants to show the world his designs are the best, or is there another evolution for the end user that only Steve Jobs can see? With NEXTSTEP, the casing was dark and murky, so the vision was lost. With the Power Mac Cube, the casing may be clear, but the vision from Jobs is not.

John-William DeClaris
Fulton, Md.

Fifteen years after I started my professional career in the graphic design business with a Mac Plus, I still get excited when Apple lays out a new plan. With or without Steve Jobs, Apple has been the driving force in PC creativity, if not quantity; you can't deny it has gotten more exciting with Jobs back at the helm.

History has shown that there never was supposed to be a winner between Microsoft Chairman William H. Gates III and Jobs; the media invented that. The truth is that in today's workplace, Windows and Mac OS reside comfortably, like yin and yang. They need each other to succeed: One drives the numbers and the traffic; the other drives the vision and the power.

I was lucky enough as a young art director to have a cantankerous old man sit me in front of a Macintosh and force me to squeeze creativity out of it. We fought the nonbelievers every step of the way. I've ridden this wave for the past decade, and I owe a good part of my career to Jobs and his Macintosh computer. It sounds corny, but without it, I would most likely be just another mediocre graphic designer stuffed back in the corner with my pencils and markers waiting for the ax to come down.

Rick Wills
Menasha, Wis.



Is the Music Industry Tasting Its Own Medicine?

Regarding ''Digital piracy: Now the spotlight is on Congress'' (Washington Outlook, July 31): Over the years, certain artists and the recording industry as a whole have profited heavily by encouraging youth to ''break all the rules.'' The music industry has done a pretty good job of advocating and promoting a counter-cultural lifestyle that has little respect for family, authority, or the status quo. I'm not antimusic, and I'm certainly not pro-piracy. But I have to chuckle as the RIAA [Recording Industry Association of America] and the artists try to figure out how to put the beast (they helped to create?) on a leash.

Brett Davis
Wilmington, Del.



The Internet Has Been Good for the Health-Care Industry

The Internet Revolution has indeed touched the health-care industry and will continue to improve it by way of increasing efficiency, competition, and economies of scale (''A startling medical breakthrough: the Internet,'' Economic Viewpoint, July 24). While the two industries, biotech and health care, may be viewed separately, changes in the former do ultimately percolate through to the latter.

Because of the availability of information and communication among the scientists, biotechnology advancement is faster in the presence of the Net than otherwise. Also, a plethora of data on the Net pertaining to the clinical trials, for the benefit of both the research and development team in the industry and the Food & Drug Administration, has contributed to efficient discovery, approval, and then marketing of new drugs.

Shubhra Upadhyay
Sunnyvale, Calif.



Death Tax: Simply the Final Indignity

''Death knell for death taxes?'' (Economic Trends, July 31) makes a point generally overlooked by those who complain that estate-tax repeal benefits only a fraction of U.S. households. The ''tiny fraction'' thesis is based on historical data, but, as author Gene Koretz points out, thanks mainly to ebullient financial markets, many Americans recently have accumulated sufficient assets to become vulnerable to the death tax.

The estate tax is the last bite in quadruple taxation. First, we are taxed on earned income during our working lives. The portion of savings that produces dividends is taxed twice--initially at the corporate level and then once again at the personal level. And, finally, since dividends aren't deductible, the estate tax will claim 17% of assets (based on the average you cite). Equitable? I think not.

Charles K. Elliott Jr.
Mount Pleasant, S.C.



DaimlerChrysler's Morale Problem

You are right in pointing to a morale problem, but it is not an ''early'' problem only, it is concurrent (''The merger that can't get in gear,'' News: Analysis & Commentary, July 31).

If, on the one hand, Jurgen Schrempp calls for ''a 25% cut in overhead expenses'' and Holden's remedy is ''further belt-tightening,'' then the absolutely unnecessary expenditures for a new luxurious headquarters in the Chrysler Building in New York, the creation of a special company airline to fly executives between Detroit and Stuttgart, and executive compensation not in line with company and share performance only serve to exacerbate the morale problem.

Maybe DaimlerChrysler should take a page from Wal-Mart founder Sam Walton's book. He led Wal-Mart to success by creating enthusiasm and loyalty among the thousands of employees on which, after all, the ultimate success or failure of a company depends. Even though executive perks such as a private airline and a prestigious headquarters may not make a difference in financial terms, such actions demoralize the ordinary employees who are pressured to save.

Robert Marx
Schorndorf, Germany



Why Luxury Brands and the Net Don't Mix

The main reason that luxury brand names such as Rolex and Versace don't participate in e-commerce is because these companies are trying to avoid what is called sales-channel conflict (''So the rich are different,'' e.biz, July 24). I first learned of this when I visited Napa Valley and noticed that wine prices at the winery were often more expensive than those in a retail store. One would think the price would be lower at the manufacturing source, without the costs of shipping or paying a wholesaler to distribute it. But wineries keep the prices high because they don't want to rob business from their wholesalers and retailers by undercutting on price.

For the same reason, we do not see Gucci, Rolex, or other luxury-goods makers selling online. They use their Web sites only as marketing tools to provide potential consumers with information so the consumer can make the purchase through the ''proper'' retail channel.

Until the luxury-brand makers are ready to roll up their sleeves and get dirty at the wholesale and retail level, and attempt to eliminate established members of its distribution chain in the process, we won't see e-commerce functionality on their Web sites anytime soon.

Ryan Young
Chicago



Keeping Toys and Products in the House

In ''He's not playing'' (e.biz, July 24), about the growing pains of e-toys, outsourcing was identified as the reason for the loss of control that led to its shipping failures. The lesson to be learned was to keep the work in-house.

This shouldn't be interpreted as a general indictment of outsourcing. But there's a difference between a process being outsourced and the management of that process. Only by assigning the best project managers to them will they be successful. But proper outsourcing management can provide economic advantages, time advantages, talent, and capabilities that would be otherwise difficult to achieve.

Chuck Runge
President and COO
SlashSupport.com Inc.
San Jose, Calif.



''Who does Linda Wachner answer to?'' (News: Analysis & Commentary, Aug. 7, 2000)

Who does Linda Wachner answer to?'' (News: Analysis & Commentary, Aug. 7) incorrectly stated that Warnaco's board has eight directors. It has nine, so about 22% of the board consists of insiders, not 25%.





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LETTERS:
Does Steve Jobs Have the Vision to Keep Apple Fresh?

Is the Music Industry Tasting Its Own Medicine?

The Internet Has Been Good for the Health-Care Industry

Death Tax: Simply the Final Indignity

DaimlerChrysler's Morale Problem

Why Luxury Brands and the Net Don't Mix

Keeping Toys and Products in the House

CORRECTIONS & CLARIFICATIONS:
''Who does Linda Wachner answer to?'' (News: Analysis & Commentary, Aug. 7, 2000)

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