Text content (OCR)
Budget Superguide: Top Digital Cameras p.87 SZ
{| HII |
THE ESSENTIAL MACINTOSH® RESOURCE
Pulled |
the Plug
Inside Story
The Clone.
HBXBKLIW***°CAR-RT SORT?*C083
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MAR 9B
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& $2500 in Bundled Software Including
MacOS |) Mac™08 & and Macromedia Director §.0
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19 registered trademarks. The Mac OS and Mac OS logo are trademarks of Apple Compute, Inc. and are used
ind other counties. The Power Computing logo is a registered trademark of Power Computing Corporation.
oration, MacBench sa registered trademark of Zit Davis, Ine. PowerPC isa trademark of International Business.
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© PowerComputing
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‘©1997 Power Computing Corporation. Alrights reserved July 1997. Apple, Macintosh and Mac
under license from Apple Computer, Ine. The Mac OS logo is registered in the Unted States
PowerTower, PowerCenter, PoworBase and Powertron ae trademarks of Power Computing Cory
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‘and specifications are valid in the U.S. only and are subject change without notice,
eesti: ip 7 pees app con pe press rases 71997 [et 970902 pr Felpovees Rin
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Press Release
Apple to Acquire Power Computing
for $100M
CUPERTINO, Calif.--Sept. 2, 1997--Apple Computer, Inc.
announced today thet it will ecquire Power Computing
Corporation's core essets in a deel 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, end engineering; Power
Computing’s customer detabese; end the license to
distribute the Mec OS operating system.
“Power Computing hes pioneered direct marketing and sales
in the Macintosh market, successfully building a $400M
business, * said Steve Jobs, Apple Board member. “We look
forwerd to leerning from their experience, and welcoming
their customers back into the Apple fomily.”
“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 helpad to make the Macintosh stronger, and
‘that the spirit of Power will live on.”
Power Computing will retain the Power Computing name end
hiss 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.
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sin | Pape One| hats New | Angle Computer, Ine. | Find | Contact Us| Hel,
PR Library | Corporate information | Speeches | Aole Soapbox | Exerutive Profties | Contoots |
PowerComputing
Snap It
87
89
November 1997
‘Tweak It
Scan It
Features
145
Digital imaging Superguide
Snap or scan a picture, fix it up,
and print it out. Top picks at
rock-bottom prices.
150
Snap It
BY JOHN GODDARD Macworld
Lab rates 11 digital cameras—all
under $600—to zero in on which
take the best pictures with the
least amount of fuss.
153
Scan It
BY PETER M sTOLLER From
paper to pixels: nine scanners
under $500 lab-tested for true-to- 4
life color and speed. of 59
Tweak It
BY JIM HEID Five easy-to-use
image editors make it a snap to
retouch, resize, and otherwise fix
less-than-perfect pictures. 163
Print It
BY JOSEPH SCHORR Now that
you’ve got your perfect color
image, how do you get perfect 166
color prints? Macworld Lab tests
nine color printers under $500 to
pick the clear, crisp winner.
MACWORLD
NOVEMBER
GWOr
de
MacUser
GraphiesUser
Safeguard Your Art
BY BEN LONG Protect your
digital creations against binary
banditry.
GraphicsUser
3-D Tricks for the 2-D Trade
BY JANET ASHFORD The right
surface textures make simple
shapes look impressive.
NetUser
Open for Web Business
BY SHELLY eRiseiN Small-
business Web strategies.
NetUser
Master of Your Domain
BY JASON snett Domain-name
tricks for your submission.
SmartUser
Help Folder
BY BOB LEVITUS AND CHRISTO-
pHer Breen Bob and Chris
answer all your questions.
MaxUser
Mouse of Blues
BY MARTIN WONG Six-string
accessories for your inner Ziggy
Stardust.
‘Andy thnatko
An Alan Smithee Computer
BY ANDY IHNATKO Macintosh
product placement is a Holly-
wood horror show.
30
34
38
42
*
3-D boards at 2-D prices
in News, page 34.
News
Computing
Acquisition seems to be the first
step in eliminating the clone|
competitors.
Stopping Junk E-Mail
Technical fixes give way to leg-
islative action.
Publishing Shake-Up
Competitors Macworld and
MacUser merge.
Sneak Peek
Quicken 98
Quicken Deluxe 98 and Quicken
Basic 98 offer substantial im-
provements.
Apple's latest PowerBook,
the 2400c/180, in Reviews, page 50.
17
“25 The Vision Thing =
Opinion
Letters
BY ANDREW GORE \The
~\___ shape of things to come.
250 The Desktop Critic
BY DAVID poGue Be dis-
12
E123
%K429
cerning, oh reading public.
How to Contact Macworld
Secrets
Mac OS 8: List View
BY JOSEPH scHORR Living
with the Mac’s new List View.
Quick Tips
BY LON POOLE
and shortcuts,
‘Tips, tricks,
‘A camcorder and digital camera all in
one—see News, page 44.
ly
79
137
142
Video-editing secrets and how-to's
in Media, page 137.
Buyers’ Tools
Mac Superguide
Detailed specs for every Mac sys-
tem on the market, lab tested and
Star Rated.
Media
Adobe Premiere Secrets
ay jim HeiO Tips and insights
into the Mac’s premier video
editor.
Publishing Workshop
BY DAVID BLATNER Worty-
free image editing with Photo-
shop 4’ adjustment layers.
ON THE COVER
Photograph by
Paul Franz-Moore
60
66
69
70
71
74
74
76
Reviews
‘***/5.8 PowerBook 2400c/180
Portable system
****/8.0 Nodester;
**KK/7.8 PhotoVista;
****/7.8 QuickTime VR Authoring
Tools Suite 2.0;
‘**x*/6.9 Spin Panorama
QuickTime VR tools compared
**x/6.8 AppleShare IP 5.0
Server suite for intranets and the Internet
*%*/8.0 Cyber Patrol 2.0;
*x**/8.5 SurfWatch 3.0;
‘***/6.0 X-Stop 1.0
Internet filters compared
*x/3.8 PrimeraPro Elite
Dye-sub/thermal-wax color printer
*xx/6.6 FotoFun Digital Color
Photo Printer;
*x/4.0 NC-2 Digital/Video Printer;
%*/4.0 Panasonic TruPhoto Printer
Photo printers compared
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**x/6.6 Vertigo 3D Words 1.0
Illustrator plug-ins
****/8.6 DitherBox 1.0;
***/6.6 HVS ColorGIF 2.0
Web color tools
****/7.6 BeyondPress 3.0
QuarkxXPress-to-HTML converter
**&*x/7.8 VivoActive Producer 2.0
Streaming video creation
***/6.9 WebCollage 1.01
Dynamic image publisher
& **/7.2. Omnis Studio
Database development tool
****/8.4 Preflight Pro
Debugging tool for Quark pages
**/59 Canvas 5.0.2
Graphics package
wkeK/8.8 Gridz
Action/strategy game
www.macworld.com November 1997 3
When You Have A Really Tight Deadline
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Introducing The New StarMax 5000 Series.
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StarMax 5000/225 StarMax 5000/250 StarMax 5500/200 StarMax 5000/300
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+ 2.5GB Hard Drive + 2.5GB Hard Drive + 4.3GB Hard Drive + 4,3GB Hard Drive
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What you never thought possible”
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TO Uo Mors
b
© 4 Zip disk holds
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aisle stot 9
VST Puts
a Little Zip”
in your PowerBook
VST proudly introduces the Zip100 drive, a Zip drive designed
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EM COP POF ALTE] Lomupaparents ricci by ten sppleatons pending nthe US and thar counties. L
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6 November 1997 MACWORLD
‘Macworld
PRESIOENT AND C£O Colin Crawford
ASSISTANT TO THE CLO Sharon Sanderson
CHIEF OPERATING OFFICER Stephen Daniels
FINANCIAL ANALYST Eos de Feminis
VICE PRESIDENT OF HUMAN RESOURCES Shelly Ginenthal
EMPLOYEE RELATIONS MANAGER Marisa Chow
‘acworta ia publetion of Mac Publining LLC
CURRENT ISSUE STAFF
MACWORLD EDITORIAL Adrian Mello, Galen
Gruman, Carol Person, Jane Lagas, Howard Baldwin, Stephen
Beale, Anita Epler, Cathy F. Abe,
Fliegel,
Katherine L. Ulrich, Allyson Bates,
Weinberger, Andrea Dudrow, Patricia Carberry-Harris LAB
beth Dougherty, ‘Tova
ier, Suzanne Courteau, Cameron Crotty,
ith A. Mitchell, Deborah
Lauren L. Black, Susan Silvius, Mark Hurlow, Jeff Sacilorto,
Paul Brown COPY EDIT AND EDITORIAL PRODUC-
TION Ruth Henrich, Paul-Michael King, Lisa Peach
Brazieal, Gail E. Nelson, Elissa Rabellino, Jackie Goodman
ART AND DESIGN Leslie Barton, Joanne Hofman, Tim
Johnson, Sylvia Chevrier, Martha Katt, Belinda Chlouber,
AiméeLennig ONLINE Paul Devine, JeffJulian, Elizabeth
Jensen, Ed Ramirez, Nicholas Harvey, Jamila Johnson, Arne
Hurty, Chip Carman, Karen Liberatore, Caius van Nouhuys,
Mate MeAlister, Roxanne Gentil, Jessica Graves
MACUSER EDITORIAL Pamela Pfifiner, Andrew Gore,
Claire H. Breen, Henry Bortman, Rik Myslewski, Karen J.
Ohlson, Jim Shate-Akin, Nancy Peterson, Roman Loyola,
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rie Hale, Scott Lane ONLINE James S.
Bradbury, Jason Snell, Barbara Bergesen, Philip W. Dyer
Mont Ridgell, Andres Brandt, Scholle
Wheeler COPY DESK Eva Langfeldt,
Augustine,
Mac Publishing L.L.C. is the worlds premier publisher of
| Macintosh-related periodicals, including Macworld and
ff Macworld are published
by Mac .-L.C. licensees in the following countries
with the following editors:
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FC WORD BULCARIAY Nali Vatcheva
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DENMARK: MACWORLD DANMARE ‘Martin Jorgenson
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ICELAND: TOLVUMIMUR-FCWORLD Stefan Hirafn Hagalin
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IRELAND: IRELAND-APRLE REPORT Frank Quinn
ISRAEL: MACWORLD ISRACL Ilan Shekel
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JAPAN: MACWORLD JAPAN Kazu Kajihara
KOREA: MACWORLD KOREA Seongsoo Kim
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NEDERLAND & AtLoiE Gert-Jan Oelderik
Nonway: PEW MACS MuLTUMEOIAY ‘Tom Helge Berglie
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PG Applications
Bananas?
OrangePC
in Your Apple
Sometimes, to keep from going bananas,
you must run a PC application on your
Mac. The OrangePC® is an expansion
card which allows you to run both
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It magically transforms
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platform = which
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© Oninge Micro, Inc., 1997
8 November 1997 MACWORLD
a processor from the low-cost
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And, the OrangePC is affordable, with
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The technical stuff:
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Circle 33 on reader service card
Macworld
EDITOR IN CHIEF Andrew Gore
EXECUTIVE ASSISTANT Patricia Carberry-Harris
EDITORIAL
sorron Galen Gruman
SxECUTIVE EDITOR Carol Person
semioR corroninews Stephen Beale
SENIOR EDITOR/FEATURES beth Dougherty
ston eDrronsacviews Anita Epler
SEMOR EDITOR/OEPARTHENTS Nancy Peterson
SeMOR TECHNOLOGY EDITOR Henry Bortman
Semon ASSOCIATE EOITORS Cathy E. Abes,
Linda Gomer,
Jason Snel,
Katherine L. Ulrich
Ass0CIATELo1TORS Allyson Bates,
Keith Mitchell,
Scholle Sawyer,
Brooke C. Wheeler
ASSISTANT EDITOR Andrea Dudrow
CONTRIBUTING EDITORS
Sharon Zardetto Aker, Mel Beckman, David Biedny,
Christopher Breen, Don Grabb, Shelley Cryan, Robert
Eckhardt, Erfert Fenton, Bruce Fraser, Jim
Thnatko, Ted Ls
Deke McClellan
John Rizzo, Steve Roth, Bob Schaffel, Joseph Schorr, Charles
d, Andy
dau, Bob LeVitus, Steven Levy, Cary Lu,
Tom Negrino, David Pogue, Lon Poole,
Sciter, Michael Swaine, Franklin N. ‘Tessler; Gregory Wasson,
Chuck Weger, Kelli Wiseth
tas
as pinecton Jeffrey S. Pinelkau
ASSISTANT LAB DIRECTOR Susan Silvius
SENIOR LAB ANALYSTS Mark Hurlow,
Jefly K. Milstead,
Jeff Sacilotio
ASSOCIATE LAB ANALYST Gil Loyola
copy EDIT
MANAGING EOITOR hire H. Breen
cory cuir Paul-Michael King
SENIOR TECHNICAL COPY EDITOR Rhoda Simmons
semoR COPY EDITOR Jon Zobeniea
ART AND DESIGN
esicn piatcron Eleanor Leishman
ASSOCIATE ART DIRECTOR Sylvia
orsicntr ‘Tim Johnson
ASSOCIATE DESIGNERS Martha Katt,
Michael Rattary
DESIGN ASSOCIATE Aimée Lennig
tavour agnist Jackie Goodman
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‘Macworld
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“Norm the Bee Guy" as printed on the EPSON Stylus Photo.
INTRODUCING THE FIRST PRINTER THAT’S AS RELENTLESS
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YOU'VE GOT TO SEE IT IN COLOR.
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12 November 1997 MACWORLD
HOW To CONTACT MACWORLD
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and include your name and address for shipping:
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We are unfortunately unable to look up stores from past issues, recom>
mend products, or diagnose your Macintosh problems by phone, e-mail,
‘or fax, Contact Apple toll-free at 800/538-9696, ext. 500, for informa-
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ur offices are located at 501 Second St, San Francisco, CA 94107;
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an, MW Shopper, he Desktop Crit, Leper! Graphics, Quek Tip. Sar
repiteed trademarks of MA Publahing LIC. Apple, the Apple loge,
ou ate regiteed trademarks, and Mactetter and
States of Ameria. Copyright © 1997 Mac Publdiog LLC. All ughts
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INTRODUCTORY OFFER
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CONTACT YOUR LOCAL RESELLER OR CALL: MWEiaes Macworld
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October, 1996
software
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Circle 34 on reader service card
ae Lellers
Another Windows User Sees the Light
AM VERY EXCITED TO BE HOLDING MY
first subscribed issue of Macworld. I
even ordered my subscription on your
easily navigated Web site, and 1 am
impressed with the layout of your maga-
zine even more. Thumbs up to all the
women and men who make Macworld
magazine a top-notch pleasure to read.
In a few weeks, I will have my first
Mac, specifically a PowerCenter Pro 180.
The exciting part is that I was a Wintel
user (I can’t believe I typed that!) and still
am, until my system gets here.
Basically, after researching the Mac-
intosh for six months, reading various
reviews and opinions on the Web and in
articles, and having numerous problems
with my current PC, I decided to convert
to the “good” side of the force—er, I
mean computing. Chalk up one more
Mac convert on the board. It’s a pleasure
to be with the winning team.
Joun DowninG
via Macworld Online
It's pleasure to have you. Welcome aboard. For
those of you who aren’t enjoying the benefits
of Macworld, as Mr. Downing points out,
‘you can subscribe via Macworld Online (www
-macworld.com).—Ed.
Notable, Portable, and Storable
‘TORAGE TO GO” WAS VERY INFORMA-
tive and loaded with detailed specs to
back it up (August 1997). However, using
most of these drives on a daily basis has
brought to my attention other issues that
were not mentioned in your tests.
I rrealize that lab tests indicate that Zip
drives have half the speed of some other
media types, but in the real world I can
pull a large photo off a Zip and have the
Zip back on the shelf faster than most
other types can even be mounted.
Rik HOCKING
Aliso Viejo, California
Rhapsody for Bil
NEVER THOUGHT APPLE WOULD BE
marketing its operating system to the
Wintel world. It seems rather odd to me.
However, it is going to happen.
What astonishes me even more,
though, is the huge emotional response
coming from Mac OS users. The same
people who are supporting Apple one day
are having a fit the next—all because
Apple has made a decision to broaden its
target market.
Think about it from a business point
of view. Apple pays a little more money
for the Windows compatibility than what
it was already going to pay to develop its
new OS. Subsequently, it'll have a prod-
uct that will cover 99 percent of the com-
puting market, as opposed to 35 percent
or so. Yet I still see people in newsgroups
proclaiming Apple Computer a traitor to
its own kind. These are strong words.
We have all seen the reports. Apple
was, and still is (though not to the same
extent), in some economic trouble. By
producing a product that could be the
biggest-selling piece of computer soft-
ware since DOS, Apple is not turning its
back on its supporters, but rather looking
out for them.
One might speculate that the contin-
uation of the Mac OS depends on its
being popular in the PC universe.
Jon Craig
Bowling Green, Kentucky
‘THINK THAT RHAPSODY FOR INTEL IS A
bad idea. Its existence would be dan-
gerous to all Mac makers. Why would PC
users want to switch to Macs if they can
use all of the new Mac software on their
Wintel platforms? The Blue Box isn’t the
answer because if that was the case, Win-
dows wouldn’t be ahead in market share.
The hardware isn’t the answer either, for
the same reason.
I understand why a cross-platform
operating system would be useful to
developers, but the Windows 95 and NT
versions of Rhapsody would allow devel-
opers to create Rhapsody applications for
PCs without the need for the additional
Intel version.
Apple should drop the Rhapsody for
Intel project and concentrate on the rest
of Rhapsody. Rhapsody programs would
still work on Intel-based machines, but
Rhapsody for Mac would have the per-
formance advantage.
Gartu Watace
via Macworld Online
continues
www.macworld.com November 1997 17
CLEMENT MOK
Information Architect
Studio Archetype, Inc.
Clement Mok is an idea guy.
a warehouse full of big ideas, and t!
As creator of award-winning
corporate identities and design entire kingdom of Valhalla intoa
solutions for companies like
Microsoft, Twentieth Century Fox,
Herman Miller, as well as Apple
Computer, ideas are the capital
of his three companies, Whether
he’s creating a cyber themepark,
compiling tons of stock photos, or
designing the elaborate kingdom
of Valhalla for the local opera,
his ideas need space. Big space.
Which is what he gets with the
1 gigabyte Jaze drive.
So while his office resides.
in San Francisco's warehouse
district, his ideas reside on
handy, removable Jaz disks.
Check out more of Clement's
story at www.4inchsquare.com/mac.
‘© 1997 Tomega Corporation. Iomega, the Tomeda logo, and Jar ove teistered trademarks, and "Because Its Your Stuf” is a trademark, of lomege Corporation. Al ather trademarks se property of thelr cespective
BECAUSE IT’S YOUR STUFF.”
LETTERS
© Shockwave movies made in Macrome-
dia’s Flash do not stream as they
doxnload (Reviews, September 1997).
© The G3 Arthur CPU, also called the
PowerPC 750, is made by IBM
(2 lz: Mac Powerhouse,” Sep-
tember 1997).
© APS Technologies can be reached at
816/483-6100, and DayStar Digi-
tal’s phone number is 770/967-2077
(Mac Superguide, September 1997).
© The NT module, Services for Macin-
tosh, must be turned on via the NT
server's network control panel (“Macs
Can Thrive in an NT World,”
News, July 1997).
Two Modems Are Better than One
| N ‘THE AUGUST 1997 ISSUE, YOU LISTED
4“Ten Ways to Recycle Your Mac.”
Number five was to connect a group of
modems together and attach them to a
Mac to handle overnight downloads from
the Internet. You called this multiplex-
ing. Can you give me some more infor-
mation on multiplexing? Some instruc-
tions on how to do it would be helpful,
including what hardware-software combi-
nation I need.
Zack M. Brock
Hilliard, Florida
You need three things. First, your Mac must sup-
port multipoint PPP. You can find out by check-
ing the documentation that came with your
machine. Second, you need two or more phone
lines. Each phone line must have a dedicated
modem. Third, you need an ISP that supports
multipoint PPP. You can call your ISP directly
to find out. If it doesn't support it, you may be
able to get a UNIX shell account (many ISPs
offer these) and pair it with a freeware solution
called Slirp to create the same effect. For more
information on Slirp and how to multiplex, check
out ucnet.canberra.edu.au/slirp/, www
_phoneboy.com/slirp/, and www.56k.com/
reports/bonding.shtml.—Ed.
Insanely Great Ads from 15-Year-Olds
| JUST SAW THE WINNING ENTRIES OF
‘Apple’s “Making Dreams Come True”
contest. The contest centered around
Mac owners’ using their Macs to create
30-second spots showcasing the advan-
tages of the Macintosh platform. After
seeing all nine of these winners (three
winners each in three categories: under
15, amateur, and professional), I have to
conclude that Apple has done a terrible
job of advertising.
Any one of these nine ads was infi-
nitely superior to any ad I’ve seen from
Apple (with the possible exception of the
“1984” ad). These ads show real people
using the Macintosh in real-world appli-
cations, and are done exceptionally well,
even the under-15 ads.
Why doesn’t Apple clean these ads up
and start using them for TV spots? Just
think of the headlines: “A Computer So
Easy to Use, a 15-year-old Created This
30-Second TV Ad with It... .” With all
of Apple’s advertising woes, an ad cam-
paign like that could save a lot of money
and get a lot of good exposure.
Tep Lee
Norcross, Georgia
eMate Expansion Explained
HE EMATE 300 DOES PROVIDE USERS
Tee a way to expand its memory by
adding SIMM RAM to its internal RAM
slot (Reviews, August 1997). You can buy
this kind of special SIMM from Newer
Tech (316/943-0222, www.newertech.com).
This way, you don’t have to sacrifice the
only PC Card slot the eMate 300 has.
WEN-Yu CHANG
San Jose, California
Take a News Break with Macworld
REALLY ENJOY YOUR NEWS-BREAK
I broadcasts. I know they must cost some
money to produce and maintain, but if
you could increase the content through
more interviews with your staff or other
guests it would be appreciated. I love to
listen to them while paying bills or surf-
ing, and they seem to have become short-
er recently. Anyway, I appreciate them.
Thanks for the effort!
Jay BONNER
Eustis, Florida
If you baven’t visited our Web site recently,
you've been missing out on the newest feature of
Macworld Online. Every week we bring you a
recorded interview—in RealAudio format—
with one of our editors or with a special guest.
continues
www.macworld.com November 1997 19
4-inch, 1 gig Jaz cartridges
for as low as $89.95."
HIGH-PERFORMANCE BACKUP
* Back up one gig in as little as 10 minutes
* Free 1-Step™ backup software backs up as
much as 2 gigs (compressed)
* Run your entire system straight from your
Jaz® drive to instantly recover from hard
disk crashes
HIGH CAPACITY MEETS INSTANT ACCESS.
* Run applications and files straight from disk
= Access time: 15.5ms read/17.5ms write
* Average seek time: 10ms read/12ms write
« Sustained transfer rate: 6.62MB/sec. max
* MTBF: 250,000 hrs.
HUGE FILES TO GO
* I-gigabyte 4-inch disks fit in your pocket
+ Portable external drives fit easily in your
briefcase—internal drives also available
* Traveller and Jaz Cards make laptop use easy
PC AND MAC COMPATIBLE
* Windows 95, NT, and 3-X, Mac, DOS, 05/2
+ IRIX and Solaris also available from Rorke Data
HOW TO CONNECT:
* Jaz Jet™ SCSI PCI $99.
* Jaz Jet SCSI ISA $89
VISIT WWW.IOMEGA,COM
or see your reseller.
INTERNAL
$399 EXTER
@ “When purchased in 10-packs. Prices Usted are
estimated street prices. Actual prices may vary.
{Step and Jet are trademarks of fomoga.
Corporation. Windows 95 and Windows NT are
‘trademarks of Microsoft Corporation. Mac is a
S trademark of Apple Computer, nc. All other trade-
marks are property oftheir respective holders.
MAC\
Macworld To buy smart when choosing Macintosh hardware
or software, you need an expert's opinion.
| Fortunately, the experts at Macworld are more
than willing to give you theirs. Just leaf through the pages of this
issue — or any issue of Macworld. Wherever you see Editors’ Choice,
you can be sure the product has passed the most rigorous tests
for performance and quality in its class. And comes out a winner.
Our reviewers scrutinize just
about every Mac product that
hits the market. If it wins
us over, you can’t go wrong.
THE ESSENTIAL MACINTOSH® RESOURCE
20 November 1997 MACWORLD
LETTERS
Hear the latest about the Mac market, new tech-
nology, and developments at Apple from the peo-
ple who know the most about it, at www
-macworld.com.—Ed.
Of Upgrades and Utility Vehicles
READ WITH GREAT INTEREST DAVID
I Pogue's recent article “The Software-
Upgrade Paradox” (The Desktop Critic,
August 1997). He asserts that Microsoft's
move to a gargantuan Word version 6.0
divided users into two camps. Literary
brevity is a necessity, but I’m sure Mr.
Pogue recognizes that there are actually
three camps: those who upgrade, those
who don’t, and those who switch.
The subtext of the article is very
clear: Microsoft knows that it can act with
impunity, and the masses must follow. I
am very sorry to say it, but it seems that
with Communicator Netscape is on the
same road.
Faced with the choice he noted (step
up to the lane-wide, road-hog, RAM-
ling 6.0, or continue to cruise in my
utilitarian 5.1 model), I did what many
consumers do. I shopped, and ended up
buying a foreign model, WordPerfect,
and I'll never go back.
KrLLy M. McDaNiet
Austin, Texas
AVID POGUE SAYS, “WHY ARE WE BUY-
ing [all-terrain sport-utility vehicles]?
Don’t tell me it’s just in case a flash flood
washes out the road to the grocery store.”
jell, I drive a Toyota Rav4, a mini sport
utility vehicle that gets excellent mileage,
handles like a dream, and incidentally was
the only vehicle to weather a flood and
make it to work with myself and every-
one else whose cars were underwater. Oh
yeah, it sports a Mac sticker too.
SUNIL RAJAN
Ann Arbor, Michigan
Letters should be sent to Letters, Macworld, 501
Second St., San Francisco, CA 94107; via fax,
415/442-0766; or electronically to CompuServe
(70370,702), MCI Mail (294-8078), America Online
(keyword Macworld), AppleLink (Macworld1), or via
the Internet (letters@macworld.com), Include return
address and daytime phone number. Due to the
high volume of mail received, we can’t respond per-
sonally to each letter, We reserve the right to edit
all letters. All published letters hecome the property
of Macworld, 0
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‘Estimated 11S. seling price; reseller price may vary. ©1997
inc. Al rights reserved. Tektronix
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Apple's Choice
The Vision Thing
by Andrew Gore
FACED WITH TWO UNPLEASANT ALTERNATIVES, APPLE MADE THE RIGHT CHOICE
F SOMEONE HAD TOLD ME A
month ago that I'd be writing
the editor in chief's column for
Macworld, I would have nodded
and asked, as nonthreateningly
as I could, how long they’d
been off their medication.
Of course, rapid and im-
probable change seems to be
the order of the day. Take, for example,
Apple's decision to buy back Power Com-
puting’s Mac OS license. While not
exactly unexpected, this move was none-
theless a shock for Macintosh users who
have come to view Power Computing as
a singular force for good on the Mac plat-
form. In a few short years, Power Com-
puting has built a reputation for offering
innovative products at a reasonable price,
and offering them with the unabashed
showmanship of a carnival barker.
With Power Computing, the Mac OS
wasn't just good, it was the best, no excus-
es and no apologies. The company did
wonders restoring Mac customers’ faith
in the platform and in their own decisions
to stand by their Macs. And while much
of this could be attributed to the gonzo
marketing the Power Computing name
became synonymous with, in a very real
sense styl¢:kecame substance as Power
Computing “helped Mac users realize
there was nothing so seriously wrong with
their Macs that a little positive PR
couldn’t help make better.
However, despite all the positives
Power Computing brought to the table,
there was an unpleasant reality just below
the surface that few of us wanted to face.
Sometimes I think we Mac advocates are
like the managers of a hotel where a skunk
has died in the crawl space. Instead of just
fessing up to the guests that their rooms
smell like something just died because in
fact something has, we point out the
amenities, the restaurant's five-star menu,
or the lovely view. The fact is, Power
Computing has done little to expand the
market. Worse, due to a series of mistakes
made in how Apple constructed the Mac
OS licensing program in the first place
(see our story in News, page 30), Power
Computing was taking business away
from Apple, business that represented the
most profitable part of Mac sales—the
high-end—that Apple relies on to pay the
bills for Mac OS development. And for all
that, Power Computing wasn’t making
money; and we all know about Apple's
economic fortunes over the last year.
This wasn’t Power Computing’s fault.
The company competed effectively based
on the rules spelled out by Apple. It was
just unfortunate that Apple didn’t foresee
how the market would evolve, and build a
sustainable licensing program. Whatever
mistakes were made, in the end Apple was
faced with a “Sophie's choice”: either con-
tinue licensing in a market climate that
couldn’t support it, or end licensing and
face the wrath of customers who were
promised choice and were now having it
away.
believe Apple made the right deci-
sion, Like it or not, Apple is the Mac, and
as improbable as it may sound, if the com-
pany doesn’t make some hard choices to
shore up its financial performance now,
Apple could easily take the Mac OS down
with it, And that, I think we can all agree,
would be a very bad thing indeed.
Now under Construction
Which brings me back to, well, me, and
the improbable place I find myself in.
Many of you reading this, I know, are
devotees of MacUser; still others are part
of Macworla’s loyal contingent. The ques-
tion I imagine both publications’ readers
have is what exactly is happening to your
favorite magazine.
Here’s the scoop. After more than a
decade of fierce competition for the hearts
and minds of Macintosh users everywhere,
Macworld and MacUser have decided to join
forces to create the most comprehensive,
most authoritative Mac monthly ever. The
new magazine, which will be called Mac-
world, combines the best elements of both
publications, plus a liberal sprinkling of
new ideas, to create the greatest single
source of inspiration and information on
the Macintosh experience.
What you hold in your hands is the
first issue featuring the editorial of both
magazines—although rest assured, it is
only the beginning. The new Macworld is
now officially under construction. And I
firmly believe that with the combined
skills of the two best editorial teams to
ever work in the Mac market, the best is
yet to come, I just want to thank Mac-
world’s and MacUser’s outgoing editors in
chief, respectively Adrian Mello and
Pamela Pfiffner. Thanks, guys, for help-
ing to create a great foundation for us to
build our new Macworld on.
An Open Invitation
And that’s what we at the new Macworld
are dedicating ourselves to: building the
best publication possible from the con-
siderable assets of two great Macintosh
magazines. We know we can’t do that
alone—to be our best means to serve our
audience's interests in the best ways poss-
ible. To that end, we want you, our readers,
to be our partners as we move forward and
start building this great new publication,
that just happens to have a familiar name.
To that end, we’ve set up an e-mail
address to which you can send your sug-
gestions and observations. Is there some-
thing you've come to depend on in the
pages of Macworld or MacUser that you
just can’t live without? Let us know. Is
there something we haven’t done that you
always wished we would? Well, now’s
your chance. Just e-mail us your com-
ments at visionthing@macworld.com.
While we may not be able to imple-
ment them all, we will give your sugges-
tions serious consideration. In today’s
fast-evolving Macintosh market, the best
way to ride the wave of change is to work
together to exploit the opportunities
change presents. m
www.macworld.com November 1997 25
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SPECIAL REPORT
Apple Eliminates the Top Clone Vendor
BUYS POWER COMPUTING
ASSETS FOR $100 MILLION
by Stephen Beale
pple Computer drove
a spike throngh the
heart of its Mac OS-
licensing program
when it announced on
September 2 that it will acquire
the core assets of Power Com-
puting, the company that built
the largest Mac-clone business.
Apple will exchange $100 mil-
lion in common stock for
Power Computing’s Mac OS
license and 200,000-name
mailing list, and also has the
right to retain Power Comput-
ing executives involved in
direct marketing, distribution,
and engineering.
Power Computing will
continue as a vendor of Win-
dows PCs, but as of December
31, it will no longer sell Mac
systems. Power Computing
has also canceled a planned ini-
tial public stock offering and
halted construction on a new
$25 million headquarters near
Austin, Texas.
Competition No More The
acquisition eliminates Apple’
stiffest Mac systems competi-
tor, one that claimed nearly 10
percent of the Mac market in
30 November 1997
the second quarter of 1997,
according to Dataquest. Apple
also stands to benefit from
Power Computing’ expertise
in direct marketing and build-
to-order manufacturing; Apple
currently sells almost all of its
systems through dealers, but
plans to step up its own direct-
marketing efforts.
First Licensee Power
Computing was founded in
1993 by PC-industry veteran
Stephen Kahng, who anti
MACWORLD
ed that Apple would soon be
open to licensing the Mac OS.
In September 1994, Power
Computing and Radius became
the first Mac OS licensees
(Radius later sold its Mac sys-
tems business to Umax Com-
puter). Power Computing
shipped its first Mac system in
May 1995, but it wasn’t until
spring 1996 that the company
began shipping systems in sig-
nificant volumes, eventually
growing to $400 million in
annual sales, according to
Apple estimates. Power Com-
puting systems consistently
outrated competing Apple sys-
tems in Macworld, MacUser; and
MacWeek re
Power Computing’ trou-
bles began early this year when
Apple signaled that it would
take a hard-line stance with its
licensees, seeking to charge
considerably higher licensing
fees and impose other condi-
tions. On June 18, Power
Computing and Apple reached
a tentative agreement that was
included in a document filed
with the Securities and Ex-
change Commission (see “Mac
OS 8 Ships with No License
Deal,” News, October 1997).
But the deal was never final-
ized, and after Gil Amelio’
July 9 resignation as Apple
CEO, de facto chief executive
Steve Jobs began an effort to
eliminate or seriously curtail
the licensing program.
Events crested at the
August Macworld Expo in
Boston, where Power Com-
puting president Joel Kocher
tried unsuccessfully to rally
attendees into a mass protest of
Apple’ licensing policies. In
mid-August, Kocher and sev-
eral other senior Power Com-
puting executives resigned over
the licensing flap; Kocher
wanted to sue Apple for breach
of contract, but the company’s
board of directors chose to
continue the negotiations that
led to the acquisition.
Now that it has sold its
Mac assets to Apple, Power
Computing will continue to
sell Mac systems until the end
of the year. Public Relations
Manager Mike Rosenfelt says
the systems will ship with Mac
OS 8, and that Power Com-
puting will likely offer dis-
counts as it clears inventory.
Ironically, Power Computing’s
demise may mean even more
price pressure on Apple, at
least in the short term.
Power Computing says it
will provide all technical sup-
port for hardware and system
software until December 31.
Beginning January 1, 1998,
‘Apple will be the primary tech-
support contact. If your prob-
Jem is with the Mac OS, Apple
tech support will handle it, but
if you need hardware or war-
ranty support, Apple will trans-
fer you to Power Computing’
tech-support facility.
Additional reporting by HENRY
BORTMAN.
N NALYSIS
Why Apple Pulled the Plug
SERIES OF APPLE, CLONER MISTAKES LED TO UNPROFITABLE SYSTEM
by Galen Gruman
ow quickly the dream
died. In December
1994, Apple ended its
Macintosh monopoly,
giving Power Comput-
ing and Radius licenses to
make their own Macs. With
Windows 95 on the horizon
and the success of an
Intel/Microsoft duopoly clear,
Apple’s leaders and the indus-
try saw a chance for the Mac
market to gain a new level of
competitiveness, flexibility, and
innovation.
Almost a year later, Apple
and IBM put aside a yearlong
rivalry and unveiled a partner-
ship with Motorola to create
the Common Hardware Refer-
ence Platform (CHRP), which
would remove Apple’s burden
of designing Mac hardware and
let the entire industry fund the
Mac platform’ development.
“We believe that an openly
licensed Mac OS running on
top of an open, industry-stan-
dard RISC hardware platform
represents a broadside against
the reigning Wintel platform,
and will play a key role in our
ongoing efforts to greatly
increase the presence of Mac-
intosh in all markets,” then
Apple CEO Michael Spindler
said during the November
1994 CHRP introduction.
“We believe today’s announce-
ment is good news for anyone
who believes in innovation,
competition, and responding
to customer needs.”
Second Thoughts Fast-for-
ward to summer 1997: After
months of complaints by Apple
officials. that licensing was
hurting the company, Apple
and the Mac OS licensees
hammered out a new agree-
ment that apparently satisfied
Apple’s financial concerns and
let the licensees stay in busi-
ness. “My position on the
clones was that we had to sup-
port them,” former Apple
CEO Gil Amelio told Mac-
Week of the tentative June
agreement.
‘Then Steve Jobs took over
Apple in July and sent strong
KEVIN CANDLAND
successful competitor, Power
Computing (see story at left).
At press time, it appeared that
IBM Microelectronics and
Motorola Computer Group
were preparing to abandon
their Mac businesses. Umax
Computer was finalizing a deal
with Apple that would largely
restrict Umax to designing and
selling Mac systems in the Far
Apple withheld support for the CHRP architecture just as the first
CHRP systems, such as Motorola's StarMax 6000, were coming to market.
signals that he wanted licens-
ing dead. In a mid-August fil-
ing with the Securities and
Exchange Commission, Apple
said, “The benefits to the com-
pany from licensing the Mac
OS to third parties may be
more than offset by the disad-
vantages of competing with
them. The company is cur-
rently in discussions concern-
ing the nature of such licensing
arrangements going forward,
including whether or not to
extend such arrangements.”
On September 2, Apple
essentially ended the licensing
program, buying out its most
East, and selling or making for
Apple sub-$1000 Mac systems,
which Apple has been unable
to profitably make itself.
Apple says it will honor
current licensing deals, which
limit licensees to shipping their
current systems. Apple also
says it will consider licensing
companies that target markets
Apple does not want. This
seems to mean small or nascent
overseas markets, such as
China and Korea, not proven
markets like the United States.
Essentially, the foray into
an open Mac market is over.
continues
www.macworld.com November 1997 31
Kill or Be Killed How did
the promise of fall 1994 devolve
into the bitter frustrations that
plagued Apple and the licensees
in spring and summer 1997?
Simply put, Apple found
itself with a do-or-die decision:
unable to compete with the
licensees’ faster, cheaper sys-
tems, and bleeding large sums
of money due to lost sales (par-
ticularly in its high-margin
systems), Apple decided it must
end licensing or go out of busi-
ness. “If we continued losing
money, we would have disap-
peared,” says Apple marketing
chief Guerrino De Luca.
“Power [Computing] and the
others were not ina position to
carry this [market] forward if
Apple died.”
Late Delivery Eroded Profits
In the second quarter of 1997,
about a fourth of all Mac sys-
tems were sold by compenies
other than Apple. A huge per-
centage of those were high-end
systems from which Apple tra-
ditionally made its real profits.
And because Apple usually
lagged behind the licensees in
introducing new technologies,
by the time Apple had new sys-
tems out, its target customers
had already bought elsewhere.
Although CHRP would
allow Mac cloners to pay for
their own research and devel-
opment, Apple was unable to
deliver the technology until
spring 1997, a year later than
originally planned. This kept
the Mac makers tightly linked
to Apples own designs and
forced them to compete for the
same customers, since their
products could not be signifi-
candy different from Apple’.
By this summer, the situa-
tion had only gotten worse for
Apple: several market re-
searchers predicted that by the
end of 1997, Apple would have
less than half the market for
new Mac sales.
Technology Missteps De-
spite Apple’s crowing about its
technology leadership, its ac-
tual technology delivery fell
32 November 1997
| News
behind that of the licensees.
Umax introduced in-line cache
first, Power Computing made
the first Mac to use the Power-
PC 750 and 1:1 backside cache,
and Motorola had the first
Macs to use the CHRP archi-
tecture. Apple instead adopted
the new Mach 5 version of the
PowerPC 604e and slightly
modified its existing systems.
‘The result was another
round of Apple Macs that cost
more and ran more slowly than
licensees’ Macs. Macworld Lab
tests this summer showed that
Apple’ 350MHz Power Mac
9600 was no match for even
a 266MHz Motorola Star-
Max 6000 XL. Apple lik
won't match the StarMax
6000% speed until early 1998
when Apple integrates CHRP
technology.
Given its technology dis-
advantage, Apple's refusal to
certify competing systems
smacked of an effort to hold
back competition it knew it
could not beat. (Apple has
denied such an intent.)
In the early 1990s, Apple
systems were _routinely
trounced in performance by
PCs, and that trend began again
in the mid-1990s, only to be
reversed by Power Computing
and the other licensees. Given
Apple’ inability keep pace with
a handful of licensees, its an
open question whether the
company will keep pace with
the PC industry now that it has
eliminated its competition.
A Shrinking Pie Since
1995, Apple’s Mac sales had
shrunk from about 4.5 million
per year to about 1.8 million.
‘The licensees accounted for
about 600,000 units in 1997, up
from a handful in 1995. Rev-
enues per system also dropped,
as Apple was forced to reduce
prices to be more competitive.
Power Computing, which
accounted for about 10 percent
of all Mac sales in 1997 second
quarter, went for Apple’s jugu-
lar earlier this year. The com-
pany developed several fast,
MACWORLD
inexpensive Macs—based on
Apple’s. own. technologies—
that outperformed anything
from Apple. Power Computing
also deemphasized its lower-
performance systems, which
tilted Apple’s sales even more to
low-profit (or even money-los-
ing) low-end Macs.
Motorola and Umax, which
each held about 5 percent of
sales in that period, targeted a
broader mix of users.
When Apple inaugurated
its licensing program, it did not
anticipate a declining Mac
market or such stiff competi-
tion for its core customers. It
did not expect management
chaos; expensive, spectacular
product failures, such as the
Copland OS and eWorld; or
such disappointing _ invest-
ments as OpenDoc and the
Newton, all of which caused
Apple to lay off thousands of
people and lose more than $1.6
billion over 18 months.
No Expansion? Worse,
from Apple’s viewpoint, the
licensees did little or nothing to
expand the Mac market. In-
stead, they focused on existin
Apple customers, advertising in
Mac publications almost exclu-
sively. The lic argued
that they needed to get a large- =
enough share of the market to
pay for growth. Ironically, it
appears that Apple came to a
similar conclusion about its
own prospects when it decided
to end licensing. The licensees
also complained that Apple did
not market the Mac to new cus-
tomers and would not cooper-
ate in joint marketing efforts to
new customers.
It is clear that neither
Apple nor its licensees were
working together to signifi-
cantly expand the overall Mac
market. Compare the lack of
cooperation there with the PC
market, where Intel subsidizes
most PCs (something Motoro-
la and IBM do not do for
PowerPC systems) and where
Microsoft aggressively markets
continues on page 36
Display Tablet
Lets You Draw
on LCD Screen
ALSO SUPPORTS WACOM'S
NEW PENTOOLS PLUG-INS
by Cathy Abes
ot content to deliver
standard graphics tab-
lets, Wacom (360/750-
8882, warw.wacom.com)
has moved into a new
dimension by introducing what
it calls a video display tablet.
Combining a tablet with an
LCD panel in one trim, 5.4-
pound package, the $2699
PL-300 Display Tablet lets you
draw and paint on screen via
Wacom’s pressure-sensitive
eraser pen. The PL-300 con-
sists of a 10.4-inch-diagonal
Wacom's PL-300 combines an LCD
monitor and graphics tablet.
active matrix LCD monitor
mounted on top of a Wacom
tablet and provides 800-by-
600-pixel resolution in 18-bit
color depth (256,000 colors).
Its dimensions are 11.4 by 10.0
by 1.5 inches.
The new tablet also sup-
ports Wacom’s Pen'Tools, the
company’s first software prod-
uct. A free set of Adobe Photo-
shop plug-ins available from
e, PenTools is
designed to extend the func-
tions of Photoshop and other
graphics programs by fully
continues
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exploiting the pressure- and
tilt-sensitive capabilities of
Wacom’ latest pens.
The plug-ins are divided
into production (Brush-on
Noise, Pen Duster, and
Despeckler) and creative tools
(Virtual Airbrush, 3D Chisel,
and Super Putty).
3-D Boards
at 2-D Prices
ATI, IXMICRO, MATROX
OFFER INEXPENSIVE
GRAPHICS ACCELERATORS
by Howard Baldwin
ven as Macs become
faster, video-card man-
ufacturers are pushing
the 3-D graphics enve-
lope with new acceler-
ator boards priced under
$1000. ATI Technologies
(905/882-2600, www.atitech
com), Matrox Graphics (514/
969-6000, www.matrox.com),
IXMicro (408/369-82!
.ixmicro.com), and ‘Tecl
(512/794-8533, www.techworks
-com) have all announced
graphics boards that support
Apple’s QuickDraw.
ATI's Nexus ATI ‘Tech-
nologies announced the Nex-
us GA, using its own 3D Rage
graphics chip, with support
for 1920-by-1080-pixel reso-
lution. The base version in-
cludes 8MB of windows RAM
(WRAM), a type of memory
that offers higher bandwidth
than the VRAM used in many
other graphics boards. Sched-
uled to ship in September, the
Nexus GA is priced at $599;
an additional 8MB of memory
costs $349.
Three from XMicro IXMi-
cro is offering three boards in
its new $659 IX3D product
family, all based on the com-
pany’s TwinTurbo 128-bit 3-
November 1997 MACWORLD
| News
D graphics controller, The
high-end $659 IX3D Ulti-
mate Rez features 8MB of
VRAM and supports up to
1920 by 1080 resolution. The
midrange $349 IX3D Pro Rez
comes with 4MB of syn-
chronous graphics RAM
(SGRAM) and supports reso-
lutions up to 1600 by 1200
pixels; video out is also avail-
able as an upgrade option.
SGRAM is less costly than
VRAM or WRAM but offers
faster graphics acceleration
than standard RAM chips.
Finally, the $249 IX3D
Mac Rocket supports MPEG
video and QuickTime play-
back at resolutions up to 1152
by 870 pixels.
New Millennium Matrox
Graphics has introduced its
Millennium II graphics accel-
erator, using its own 64-bit
MGA-2164W processor, with
support for resolutions up to
1920 by 1200 pixels, Support-
ing QuickDraw 3D and
MPEG-1, the Millennium IT
costs $269 with 4MB of
WRAM and $369 with 8MB
of WRAM.
TechWorks The
Power
$249 Power3D from Tech-
Works features 4MB of RAM
and a Voodoo Graphics 3-D
SS
chip from 3Dfx Interactive.
Targeting computer-game
users, it supports the standard
14-inch monitor resolution of
640 by 480 pixels. The PCI
board does not accelerate 2-D
graphics, but includes a pass-
through cable that allows use
with the Mac’s on-board accel-
erated 2-D video circuitry.
Stopping
Junk E-Mail
WILL LEGISLATION
STEP IN WHERE
TECHNOLOGY FAILS?
by Cameron Crotty
nsolicited commercial
e-mail provokes a hos-
tile response from just
about every Net citi-
zen. Users and Inter-
net service providers (ISPs)
have found it nearly impossible
to construct effective technical
defenses, so they are turning
to the courts and legislation
for more-effective weapons.
Meanwhile, direct-marketing
companies are battling enthu-
siastically for your right to
receive junk e-mail.
Can't Block It Out Ever
since junk e-mail appeared,
network administrators and
technically savvy users have
sought ways to eliminate it. But
they are handcuffed by the
Internet’ primary function of
encouraging, rather than pre-
venting, the transmission of
information.
As part of its optional Pre-
ferred Mail services, America
Online will automatically
block incoming messages from
hundreds of Internet domains
that are known sources of junk
e-mail. But the list grows daily,
and AOL admits that it’s tech-
nically powerless to eliminate
the problem. “As soon as we
figure something out, they
{junk e-mailers] stay five steps
ahead of us,” says Jill Lesser,
AOL deputy director of lw
and public affairs.
ISPs that block e-mail also
run the risk of interfering with
legitimate traffic. Earlier this
year, Netcom officials blocked
transmissions from the domain
of e-mail provider Hotmail
because a Hotmail user had
flooded Netcom’ servers with
undeliverable junk e-mail mes-
sages. Netcom’s action pre-
vented its servers from crash-
ing, but it also angered users
who could no longer receive
e-mail from Hommail accounts.
Hotmail has since placed
limits on the number of
addresses to which users can
send a single message, but the
larger problem remains. Harris
Schwartz, information security
administrator at Earthlink, a
Southern California ISP, says
that some ISPs are still block-
ing messages from Earthlink in
response to previous junk
e-mail incidents.
Legal Action Frustrated
with the ineffective technical
weapons available, some
ISPs—including CompuServe,
America Online, and Earth-
link—have turned to the legal
system. While the details of
the cases vary, these companies
have successfully argued that
current methods of sending
junk e-mail constitute trespass
or “use exceeding consent” on
their network resources.
As far as Earthlink cocoun-
sel Pete Wellborn is con-
cerned, its high noon on the
Internet, he’s wearing the
white hat, and it’s time to get it
on. “We're at a crossroads,” he
says. “The Internet can either
become a glorified infomercial
or a useful tool for communi-
cation and education. That's
going to depend on what's
done with spammers.”
But other ISPs are reluc-
tant to call in the lawyers due
to the high cost of lawsuits and
the general lack of legal prece-
dents on cyberspace activities.
The precedents that apply to
telephone solicitation or postal
junk mail are of little use, since
these cases generally involve
some form of consumer fraud.
Some junk e-mail is fraudulent,
but most of it is simply annoy-
ing. While you can sue some-
one for being a nuisance, going
continues
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after a junk e-mailer on this
basis “would be a stretch,” says
Steve Elias, associate publisher
of Nolo Press, a California
company that publishes books
on legal issues.
Whose Law Is It? Con-
gress is now considering sever-
al bills that directly address
junk e-mail. One, sponsored
primarily by Senator Robert
Torricelli, D-NJ., would pre-
yent spammers from hijacking
e-mail servers and forging
e-mail header information to
disguise the message’s origins
or to prevent the recipient
from responding. A second
bill, sponsored by Senator
Frank Murkowski, R-Alaska,
would require that commercial
e-mail be specially labeled,
presumably making it easier to
track or avoid. The most dra-
matic legislation, proposed by
Representative Chris Smith,
R-N]., adds e-mail restrictions
to an existing law that makes it
illegal to transmit unsolicited
commercial faxes.
All of this legislative
action, especially the Smith
Dill, scares the daylights out of
ISPs and direct marketers. Few
ISPs support the legislation,
and those that do give luke
warm lip service—at best—to
either the Torricelli or the
Murkowski bill. Tony Kelly,
director of corporate market-
ing for PSInet, states that
PSInet is opposed to “anything
that smacks of censorship on
the Internet.” Meanwhile,
AOLs Lesser says that her
company isn’t completely
36 November 1997
[ Mews
happy with any of the proposed
legislation, even though AOL
helped draft the ‘Torricelli bill.
Dmas View The Direct
Marketing Association (DMA)
is a trade association for busi-
nesses interested in what it
terms “database marketing.”
Not surprisingly, President
Bob Wientzen was emphatic in
rejecting any legislation, claim-
ing that “everyone will best be
served by self-regulation.” The
DMA currently runs successful
telephone- and _mail-prefer-
ence services, through which
you can request that your name
be removed from the databases
of member companies.
This is known as an “opt-
out” system, where it’s pre-
sumed that you want market-
ing information unless you
take action to remove yourself
from mailing lists.
Wientzen says the DMA is
working ona similar system for
e-mail, which he expects to be
active this fall. He says the
DMA is also talking with the
Internet E-Mail Marketing
Consortium (EMMC), which
includes some of the best-
known junk e-mail distributors.
User Reaction While the
computer industry generally
opposes junk e-mail legisla-
tion, groups of users, such as
the Coalition Against Unso-
licited Commercial Email
(CAUCE), have thrown their
weight behind the Smith bill.
CAUCE spokesman Scott
Hazen-Muller scoffs at the
DMaA%s proposed opt-out sys-
tem. “If I spent half an hour, I
could probably find ten differ-
ent remove lists, so what good
is one more?”
CAUCE supports “opt-
in” marketing methods, by
which a consumer must first
request information before a
business can send anything.
Hazen-Muller also questions
whether junk e-mailers would
even bother to join the DMA.
Hazen-Muller also questions
whether junk e-mailers would
even bother to join the DMA,
MACWORLD
NEWS ANALYSIS
“WHY APPLE
PULLED THE PLUG"
continued from page 32 ey
Windows (Apple rarely mar-
kets the Mac OS).
High Design Costs Apple
officials began complaining this
spring that the licensees were
not paying their “fair share” of
Mac development costs. Apple
had been charging a license fee
of about $50 per Mac system
for the Mac OS and another
$50 to $75 for use of Apple’
hardware designs. (CHRP sys-
tems did not require a separate
hardware fee.) Apple now be-
lieves these fees were too low:
“The bet that low licensing fees
were sustainable was made
based on a growing Mac OS,
which turned out not to be
true,” De Luca says.
‘After months of negotia-
tions, Apple and the licensees
agreed in June to anew Mac OS
fee of about $150 to $350 per
system, depending on speed.
(Compare that with about $50
to $65 for Windows 95 and $90
to $100 for Windows NT.)
The licensees also pay
about $5000 for certification
by Apple for every system vari-
ant they make, in addition to
an annual certification fee,
according to sources. Despite
Apple’s protests to the con-
trary, the licensees were paying
Apple real money.
While unhappy with the
new fees, the clone makers
accepted the June deal. But a
few weeks later, Steve Jobs
forced out Amelio and backed
out of the agreements.
Even after the June agree-
ments, Apple officials com-
plained that the licensing fees
were too low, and some hinted
that Apple would need $500 or
more per system to cover Mac
OS and Mac hardware devel-
opment costs.
Why so much? According
to industry analysts, Apple’s
cost structures are extremely
high, given its need to pay for
both Mac OS and hardware
development. This means the
overhead per Mac is more than
any licensee would reasonably
pay, and is one reason why
Apple’s Macs are so much cost-
lier than PCs.
The licensing program
magnified Apple’ historically
high costs because Apple could
no longer recoup its software
development costs through its
own Mac sales. By contrast,
Microsoft pays for Windows
development while Intel pays
for most PC motherboard
development—and both com-
panies sell about 16 times the
volume of products that Apple
could hope to. However, IBM
and Motorola have paid most
of the costs for CHRP, and
practically all the costs of the
PowerPC CPUs.
Microsoft also makes tre-
mendous revenues from its
Office programs, which helps
subsidize the company’s R&D,
much the way Apple hard-
ware sales have subsidized OS
development.
Crown Jewels
Although
Apple has portrayed the licens-
ing failure as a recent econom-
ic decision, the reality is that
Apple, or at least parts of it, has
never been comfortable with
sharing the Mac crown jewels.
‘That, plus the constant sniping
by Apple officials on licensing
for the last six months, has cre-
ated a fundamentally negative
relationship between Apple
and the licensees.
Despite some thaws in the
relationship and an occasional
positive working arrangement,
the basic Apple/licensee part-
nership was not based on trust
or respect, merely on financial
opportunity. As the market
changed and the conditions for
mutual success became more
difficult, Apple and the licens-
ees pulled apart rather than
pulled together. The result was
that when the Mac market's
economics went south, licens-
ing became doomed to failure.
peren Hoer
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Circle 99 on reader service card
A New Era
for Mac Pubs
IDG AND ZIFF-DAVIS
MERGE MACWORLD,
MACWEEK, MACUSER
by Carol Person
new era dawned in
Macintosh publishing
when International
Data Group (IDG),
parent company of
Macworld, and Ziff-Davis,
publisher of MacWeek and
MacUser; agreed in August to
form a joint venture called
Mac Publishing that will con-
solidate the three magazines.
The new company will pub-
lish MacWéek in its current
form and Macworld as a
monthly that incorporates
MacUser. The changes became
effective with this issue of
Macworld. For several months,
Macworld will feature a
MacUser insert in addition to
standard Macworld content.
During that time, the merged
staff will work on a redesign
that uses content from both
magazines. MacUser sub-
scribers will automatically
receive Macworld,
Colin Crawford, formerly
president and CEO of }
world Communications, holds
the same post in Mac Publish-
ing. The new venture is led by
a board of directors consisting
of Crawford and two repre-
sentatives each from IDG and
Ziff-Davis. The company’s
operations are headquartered
in San Francisco,
Crawford named former
MacUser editor Andrew Gore
as editor in chief of Macworld
to replace Adrian Mello, who
resigned after the joint ven-
ture was announced.
Crawford also named
Macworld coexecutive editor
38 November 1997
| Mews
Galen Gruman as editor.
Mello, who had served
as editor in chief of Mac-
world since 1992, announced
his resignation in a message
sent to the magazine’s edi-
torial employees:
“I write to let you know
that I am resigning as editor
in chief. I feel like I've com-
pleted my work at Macworld
and current conditions make
it the logical time for me to
move on to the next phase in
my career.
“Throughout my time at
Macworld 1 have always had
the deepest respect for the
staff and contributors. A few
of you who have been here as
long as I will testify that it has
always been a special place
Macs for the Gallery
with exceptional people. I feel
fortunate to have worked over
the years with an editorial
staff that was uniformly com-
mitted to quality, integrity,
consideration of others, pro-
fessionalism, and general
excellence. I know that along
the way, all of you have given
many extra hours of effort to
ensure that Macworld was the
best product it could be.
Without you, none of my per-
sonal success or the compa-
ny’s success would have been
possible.
“Macworld editorial’s de-
signers, administrative staff,
editors, online staff, copy edi-
tors, lab staff, contributors,
art directors, and production
editors are the best in the
NEW BOOK CHRONICLES APPLE INDUSTRIAL DESIGNS
Mac fanatics know that Apple has produced the most stylish
computers ever sold—most recently its limited-edition 20th-
anniversary Mac (see “The 20th Anniversary Macintosh,"
March 1997). But few realize that some of Apple's most inno-
vative industrial designs
never made it to market.
AppleDesign, a new
book by Paul Kunkel
with photographs by
Rick English, chronicles
the evolution of the
Apple Industrial Design
Group and the award-
winning machines it
has developed, includ-
ing many that never got
past the prototype
stage. Examples include
the Paladin, an all-in-
one computer, telephone, fax, and answering machine; and the
PenMac (shown above), a handheld, stylus-controlled com-
puter with a CD-ROM drive and infrared data terminal.
Other noteworthy designs include the Nautilus series, sub-
notebooks wrapped in leather and brushed or polished metal,
and the Domesticated Mac, an update of the discontinued
Color Classic. AppleDesign is available for $50 from Graphis
(212/532-9387, www.graphis.com).—ANDREA DUDROW
MACWORLD
business and I am proud of
the work that we have com-
pleted together. Macworld has
been the standard of excel-
lence among all computer
publications precisely because
we have always tried to be a
great magazine, not just a
great computer magazine.
“I especially appreciate
the strength of character
within our community, which
has meant that Macworld has
always been a place of mutual
care and consideration. The
greatest gift you could give
me is to continue in this same
spirit of devotion to quality
and concern for others. I
thank you all for everything
you have done to contribute
to my fulfillment and I wish
you all the best.”
Be Bops
On with New
Software
RUNS BEOS ON INTEL AS
NEW APPS ARE UNVEILED
by Howard Baldwin
s Apple celebrates
strong sales of Mac
OS 8, Be (650/462-
4100, www.be.com),
developer of one of
the other operating systems for
PowerPC CPUs, continues to
bop along with new releases of
its software.
In July,
the company
shipped its BeOS Preview
Release for PowerPC, fol-
lowed by an update that adds
AppleTalk printing and
improves video drivers and
IDE support. Hedging its pro-
cessor bets, Be also demon-
strated its BeOS running on a
dual-Pentium II PC at an
August developer conference
continues
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