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August 1997 -- Magazine News Apple Spins Out Newton Division New Subsidiary to Handle PDA Products By Stephen Beale and Cameron Crotty Apple Computer (408/996-1010, www.apple.com) took another step in its restructuring efforts May 22 when it announced that it will spin off its Newton Systems Group into a wholly owned subsidiary dedicated to Newton-based products. License to eMate The as-yet-unnamed company will assume control of the MessagePad 2000 personal digital assistant (see Reviews, July 1997) and eMate 300 notebook computer (see Reviews in this issue), both of which are based on the Newton operating system. The subsidiary will support, sell, and market the MessagePad 2000. Apple will have an exclusive license to handle those responsibilities for the eMate 300. Apple has not named a CEO for the new company, but has appointed Sandy Benett as chief operating officer. Benett was previously vice president of the Newton Systems Group. Newton developers are enthusiastic about the move. "This is great," says Ken Landau, president of LandWare (201/261-7944, www.landware.com). "Now [the Newton company] can focus on their operating system without a cloud hanging over their head." Other developers agree, saying that greater distance from Apple might increase consumer confidence. No Partners At the Seybold New York conference in April, Apple executive vice president of technology Ellen Hancock said the company was looking for an investment partner for the Newton Systems Group. But Apple failed to find any takers, and Apple chief financial officer Fred Anderson says the spin-off will make the Newton unit more attractive to potential investors, or as a public stock offering. He expects the new company to be profitable within 12 months of its June 30 incorporation date. The Newton Systems Group has long symbolized Apple's lack of corporate focus, and many observers expected the unit to be among the first restructuring casualties (see "Amelio Carves a New Apple," News, June 1997). But sales rose dramatically following the successful introduction of the MessagePad 2000 and the eMate 300 early this year. About 170 people will leave Apple's payroll; Benett hopes to move most of them to the new company, which will be located outside the Apple campus. August 1997 page: 29 Search Magazine You may search for more than one term at a time --"video and fax" or "Pogue and Poole," for instance. Enter search term(s) here: Refine your search To further refine searches, check the appropriate boxes below. For example typing "scanners" into the search box and checking "Features" and "Titles" yields a list of feature articles that contain scanners in the title. For more information about this, please consult Tips for Searching Macworld Online. Features Reviews News Columns Main text Title Author Archive Copyright © 1997 Macworld Communications, Inc. Site links: Buyer's Guide Netsmart Daily News Magazine Feedback Gameline Community Newsletters Software Collection Search Home Ad Index Magazine links: Features Media News Opinion Reviews Secrets Archive Search Magazine