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Apple Check Up - February 1996

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                          [The Macintosh Advantage]

February, 1996

Apple Check Up

     A roundup of recent good news about Apple and Macintosh, including
     sections on Market Strength, Intenational Appeal, Technology,
     Developer Commitment, Apple on the 'Net, Installed Base &
     Customers, and 1995 Industrial Design Awards.

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Market Strength

   * Apple shipped 1.3 million units and generated $3.1 billion in revenues
     durin the quarter ended 12/29/95, more than ever before in its history.
     Included in this total were over one million PowerPC-based systems.
   * Unit sales of Macintosh software increased by 26.9% over the prior year
     for the first ten months of 1995, according to the Software Publishers
     Association.
   * Apple has 63% of the installed base in U.S. K-12 institutions,
     according to QED. Apple's market share in K-12 has risen four points in
     the last year.
   * 58% of all K-12 purchases in the 95-96 school year will be Macintosh,
     per QED.
   * Apple was the number one brand among U.S. college students in 1994,
     accordin to Roper College Track. Among full-time, undergraduate
     students at four-year schools who own personal computers, 29% own
     Apple-- a full 11% more than the nearest competitor.
   * Apple is the brand of choice in higher education institutions. 19.4% of
     PCs purchased by higher education institutions in 1994 were Apple
     computers, according to Computer Intelligence InfoCorp.
   * Macintosh holds a 76.2% share of color-prepress customers and will grow
     to 77.4% share, according to a 1995 study by Griffin Dix Research
     Associates.
   * Based on Apple and third-party data, Apple has an estimated 47% share
     of U.S commercial publishing customers, 26% share of U.S. corporate
     publishing customers, and 50% share of U.S. chemical, pharmaceutical,
     biotechnology, scientific, and engineering customers.
   * 63% of all multimedia applications development was done on Macintosh in
     1994 per Dataquest.
   * Apple was the leading worldwide multimedia personal computer vendor in
     1994 per Dataquest, selling more CD-ROM units than any other vendor.
   * 33% of existing multimedia personal computers are Macintosh, per SIMBA
     Information, Inc.
   * BIS states that Apple is the worldwide market leader in digital camera
     sales The Apple QuickTake share is greater than the sales of all other
     digital camera manufacturers combined.

International Appeal

   * Apple has been named the number one vendor in customer satisfaction for
     the sixth time by Linea Edp, the major Italian MIS magazine. Apple was
     voted the leading vendor in the following categories:
        o reliability
        o manuals
        o networking
        o ergonomics
        o advertising effectiveness
   * The Chinese Dictation Kit, Apple's Mandarin Voice recognition software,
     was awarded Best of Show at Comdex Asia, November 95.
   * The Power Macintosh 7500 was named "Personal Computer of the Year" for
     1995 by Politiken, one of the two largest Danish daily newspapers.
   * Apple is the number one U.S. computer vendor and the number three
     vendor overall in Japan with 14 to 15% share per IDC and Dataquest.
   * In the fourth calendar quarter of 1995, Apple's unit shipments in Japan
     increased 50% over the previous quarter.
   * Macintosh software sales accounted for 18% of the Japanese market in Q2
     1995 up from 13% in the same quarter in 1994, per the Software
     Publishers Association.
   * In July of 1995, over 750 developers attended the Japan Developers
     Conference. Thirty percent were first-time attendees.
   * Apple is the most used personal computer brand overall in Australia,
     per IDC and is the number one brand in Australian business, education,
     and consumer markets.
   * Apple was the number one vendor in the Canadian education market in
     1994, with 32.5% share, per IDC. Apple was the number one vendor in the
     Canadian consumer market in 1994 and through the first half of 1995,
     per AC Nielsen Marketing Research. Apple's unit growth in Canada
     through the first half of 1995 was double the overall Canadian market
     growth.

Technology

   * Apple continues to lead the way in technological innovation. According
     to the 1/29/96 issue of Information Week, Apple Computer was awarded 53
     U.S. software patents in 1995, more than any other vendor.
   * The Apple Power Macintosh 7500 and 8500 received BYTE Magazine's 1995
     Editors' Choice Awards of Excellence.
   * InfoWorld named OpenDoc the winner of the 1995 Landmark Technology
     Award, given to the most significant original idea or advance in a
     current technology each year.
   * Apple received two of the seven "Demo God" awards given at P.C.
     Letter's Dem '96 for its demonstrations of Copland, Newton, Pippin,
     Cyberdog, the Chinese Dictation Kit, and the MacOS running on an IBM
     PowerPC Platform box.
   * The Software Publishers Association has selected three Apple products
     as finalists for the 1996 Excellence in Software Awards:
        o Best Internet/On-line Product or Service - Apple Internet
          Connection Kit
        o Best Programming Tool - Oracle Power Objects
        o Best Programming Tool - QuickTime VR
   * Apple's Newton Operating System 2.0 won Byte Magazine's "Best of
     Comdex-Fall'95" award in the operating system category.
   * The Macintosh Performa 5215CD system was awarded the 1995 "Mac System
     of the Year Award" from MacUser Magazine.
   * January 1996 MacWorld World Class awards were granted to Apple and
     Claris in the following categories:
        o Most Innovative Company - Apple Computer, Inc.
        o Best New Technology - QuickDraw 3D
        o Computer System - Power Macintosh 7500/100
        o Business Printer - LaserWriter 16/600 PS
        o Best Overall Productivity Software - FileMaker Pro for Macintosh
        o Best Integrated Software - ClarisWorks
   * The Power Macintosh 8500 was named "Best Desktop System" in 1995 by
     Ziff Davis's United Kingdom PC Magazine.
   * QuickDraw 3D was named 1995 "Breakthrough Technology of the Year" by
     MacUse Magazine.
   * Apple's Color LaserWriter 12/600 PS and ColorSync 2.0 received 1995
     IMPACT awards from Publish Magazine for advancing the future of desktop
     publishing. The Color LaserWriter 12/600 PS also received the first
     place Computer Graphics World 1995 Editors' Choice award in the Hard
     Copy Output category .
   * Apple's QuickTime VR was the first place winner of the 1995 Computer
     Graphic World's Technology Award.
   * Apple has made a very successful transition to RISC architecture.
     PowerPC 601, 603, 604 are now implemented across most product lines,
     including PowerBooks.
   * Apple has transitioned Power Macintosh to industry standard PCI bus
     architecture, which means lower card costs for customers, and a more
     open platform for developers
   * Apple's price/performance equation is good across all lines, and
     excellent a the low end. Targets for pricing comparisons are the
     leaders in the major markets, not second or third tier clones.
   * Apple is the first vendor to use Canon's revolutionary new color
     engine, included in the high-end Color LaserWriter. Major customers
     (e.g. Kinko's) have endorsed this technology over rival H-P and
     Tectronics color printers that cost more and provide lower color
     quality.
   * Apple is the first vendor to market with a self-calibrating color
     monitor (1 inch). This is due to Apple's ability to tune hardware,
     software and external technologies for best of breed solutions.
   * ColorSync 2.0 from Apple is a major differentiating factor in
     publishing. This forms the basis on the monitor's 'true color'
     capabilities.
   * Apple is the first and only digital camera manufacturer to offer a
     24-bit color still-image digital camera with a street price of below
     $700.
   * Apple expects to have Copland in the hands of customers by mid-1996.
   * With WorldScript technology built into the Mac OS, Macintosh is the
     world's best multilingual computer, now available in 44 language
     versions.
   * Apple continues to provide outstanding leading edge technologies, such
     as QuickDraw 3D, QuickTime Conferencing, QuickTime VR, and QuickDraw
     GX.
   * Apple's OpenTransport, implemented in System 7.5.2, allows Macintosh
     systems to fit in seamlessly to mixed computing environments by
     providing universal client access to LAN services and with protocol and
     physical layer independence
   * Apple is the only personal computer company with systems that run both
     Mac and Windows applications.

Developer Commitment

   * Attendance at Apple's developer conference in May 1995 was higher than
     ever.
   * There are thousands of Mac applications on the market today, including
     approximately 1200 native Power Macintosh applications, and 500
     Mac-only applications.
   * Third-party illustration and image-editing software sales for the first
     half of 1995 were $87.3 million for the Mac platform, compared to $79.5
     million for the Windows platform, according to the SPA..
   * A recent IDC study indicates that on average, the cost to develop and
     suppor Wintel applications is 50% higher per dollar of revenue than the
     cost to develop for Macintosh. The same study indicates that software
     marketing costs are 13.5% of revenues for Mac applications and 26.3% of
     revenues for Wintel applications. The study says that Macs generate
     almost 75% more software revenue per machine than Windows machines.

Apple on the 'Net

   * Macintosh is the number one Web authoring platform. According to
     Chicago-based consulting firm Mirai, 41 percent of the 550 Webmasters
     it surveyed created graphics for their World-Wide Web site using Macs.
   * Apple's share of Internet client and server stations is twice as high
     as our general market share. Internet access is becoming an
     increasingly strong motivator for personal computer purchase. Over 47%
     of U.S. home PCs have modems.
   * The Mac OS is the second most popular OS platform for World Wide Web
     servers according to a Georgia Institute of Technology survey. More
     than 20 percent of the servers on the Web are Macintosh systems.
   * META Group reported in December 1995 that 25% of all Web browsing is
     done from a Macintosh.
   * Apple's Web site was named "Best Commercial Site" in the large company
     category in Science and Engineering Network News's "Best of the Net"
     contest in its March 1996 issue.
   * Interactive Age Magazine's Webmasters Advisory Board named Apple's home
     page as one of the most effective corporate sites on the Internet.
   * Apple's Internet Connection Kit allows easy Internet access with the
     click o a mouse.

Installed Base/Customers

   * Apple leads the industry in overall customer satisfaction for desktop
     personal computers, according to the J.D. Power and Associates 1995
     Desktop Personal Computer End-User Satisfaction Study. Apple scored the
     highest in the industry for vendor reputation, upgradability,
     connectivity, set-up/documentation and display.
   * An October 1995 study of technical support costs in business
     environments by Gartner Group Consulting Services indicates there is no
     cost penalty for maintaining dual personal computer platform
     environments. Moreover, the study indicates that the higher the
     percentage of Macintosh in a given Mac/Windows environment, the lower
     the overall support costs. Support costs for Macintosh are
     approximately 25% lower than those for Windows.
   * The January 8th issue of Government Computer News printed the results
     of a product preference survey on desktop operating systems that they
     mailed to 4,000 of their readers. Readers rated seven operating systems
     on various criteria. Apple's System 7.5 was rated first in nine of
     eleven categories:
        o Compatibility with applications software
        o Power, speed
        o Ease of use
        o Memory resource management
        o Ease of installation
        o Understandable paper documentation
        o Interface appearance, customization
        o CD-ROM customizable installation
        o Additional OS enhancements
   * Macintosh requires less customer support than any other personal
     computer, based on a 1995 Dataquest study.
   * Apple has shipped over 22 million Macintosh systems.
   * CI Infocorp study suggests that Macintosh brand loyalty is the highest
     in th industry. 90% of Macintosh customers buy Macs again when making a
     second purchase.
   * A December 1995 PC World study ranked Apple the #1 personal computer
     vendor for reliability and service.

1995 Industrial Design Awards

   * PowerBook 500 Series - ID Magazine Award, Silver Award - IDEA/Business
     Week Awards, '95 Design Innovation Award, '95 SMAU Prize (Italy), JIPDO
     Good Design Award (Japan), Chicago Athenaeum 1995 Good Design Award
   * Quicktake 100 - Best of Category, Industie Forum (Germany)
   * Newton MessagePad 110 - '95 Design Innovation Award
   * Apple Design Powered Speakers 1 - Chicago Athenaeum 1995 Good Design
     Award
   * Apple Design Powered Speakers 2 - ID Magazine Award, Best of Category,
     Industie Forum (Germany)
   * Quadra 605 - Best of Category, Industie Forum (Germany), Chicago
     Athenaeum 1995 Good Design Award
   * Performa 5200 - Top Ten Design of the Year, Industie Forum (Germany),
     Chicago Athenaeum 1995 Good Design Award
   * Color Stylewriter 2400 - Silver Award - IDEA/Business Week Awards, Best
     of Category, Industie Forum (Germany)
   * Shared Conceptual Model Process (Research exploration) - Best of
     Category - ID Magazine, Gold Award - IDEA/Business Week Awards
   * Personal LaserWriter 320 - Chicago Athenaeum 1995 Good Design Award
   * Performa 630, Chicago Athenaeum 1995 Good Design Award
   * Audiovision 14" Display - Chicago Athenaeum 1995 Good Design Award
   * Adjustable Keyboard - Chicago Athenaeum 1995 Good Design Award.