Apple to License Newton Technology

Can Apple Make Newton the Standard?

At last month’s CeBIT computer exhibition in Hannover, Germany, Apple Computer announced a series of agreements to license its Newton mobile computing technology to major communications and hardware manufacturing companies — most notably Siemens/ROLM in the communications arena, and Motorola on the hardware side. Apple also announced agreements with Cirrus Logic and LSI Logic to manufacture ARM chip sets and application specific integrated circuits (ASICs), and with Kyushu Matsushita Electric (KME) to include the Newton operating system in KME products. As was established at the first announcement of Newton last year, Sharp Electronics remains the primary strategic partner with Apple, particularly for mass production of Newton devices.

The agreement with Siemens and its ROLM subsidiary is significant in that it establishes an alliance with a proven telecommunications company, which will be able to compete with AT&T. The Motorola alliance gives Newton an entry into the cellular and wireless pager market, in which Motorola is a solid leader.

Siemens Will Build NotePhone

Much like AT&T’s alliance with EO and GO, the primary purpose of the Siemens/Apple alliance is to produce telephony devices based on pen computing technology — in this case, the Newton technology. Siemens/ROLM announced at CeBIT that they will build a device called a NotePhone which includes a Newton pen computer and a fax/telephone component. The pen computer will be detachable so that the NotePhone can either be used as a communications device or simply as a computing device.

The NotePhone will be available in a variety of versions with varying price points and capabilities. The “upper end” of the product line will support wireless communications, while less expensive devices will simply plug into wired phone networks. Siemens declined to give any specific timetable for the delivery of this proposed product. Siemens also plans to develop future Newton-based products for language translation, fax, and video.

Motorola Will Build Wireless Device

Similarly, Motorola will leverage its expertise in cellular and radio communications to build a handheld device with wireless communications capabilities based on the Newton operating system. Motorola will market its Newton-based product under the Motorola label. Again, Motorola did not disclose a specific timetable or product details.

Of course, Motorola has a long-standing relationship with Apple, so that the licensing agreement comes as no surprise. Motorola is already providing Apple with a wireless receiver card called the NewsCard Advanced Information Receiver, which will be offered as a communications option for Apple’s Newton products.

Aiming for a Standard

Apple is approaching the Newton in a remarkably different way than it did the Macintosh. While Apple maintained strict proprietary control over the Macintosh technology and remains the sole source of Macintosh computers, Apple is looking for a bigger share in the handheld computer market. Apple is emphasizing that Newton is not a single product but a technology that will appear in a wide variety of devices, from telephones to white boards for classroom instruction. Apple is distributing a brochure illustrating a variety of Newton product concepts. These include the Newton fax/telephone, the classroom whiteboard, a drawing and spelling device for young children, an inventory tracking device that straps on your wrist, a portable map and atlas, to name a few.

Of course, Apple is not alone in developing this multiple product concept. Apple has formidable competitors in AT&T, Microsoft, Tandy, and IBM, but Apple may beat its competitors to the punch if it can deliver the Newton this summer as promised. According to Gaston Bastiaens, general manager of Apple’s Personal Interactive Electronics division, Apple believes that it has an edge over the competition because the Newton operating system has been developed “from the ground up” for mobile computing rather than a “hodge-podge of thrown together technologies,” presumably referring to Microsoft. Of course, AT&T is using PenPoint, which is also an OS designed from the ground up for mobile computing.

The First Newton

Apple emphasized at CeBIT that it is still on schedule to deliver the first Newton product “some time this summer.” According to Bastiaens, the first Newton will be priced “significantly below $1000” and will not include wireless communications, but will be able to connect to PCs and Macintosh computers and presumably to other Newtons. Bastiaens says that Apple is almost ready to begin the beta testing phase for this first Newton product. He emphasized that a period of “extensive product testing” will take place before the machine is made commercially available.

Is General Magic the Glue?

With the marketing muscle and technical know-how of AT&T, GO, EO, and Microsoft, we seriously doubt that Apple can establish Newton as a dominant standard. Newton will obviously be a major competitor, but no one is standing still in this business. For example, Microsoft is rumored to be working on a brand new operating system based on Windows for use in handheld devices and is developing it in conjunction with Intel, which will supply the low power electronics.

As we discussed in our last issue, the key issue will be communications compatibility between the various devices from different vendors. This is where General Magic’s communications language and protocol could play a key role (see the February, 1993, issue).

But for now, all we can do is wait and see. Hopefully, we’ll be able to report on some beta versions of the Newton in our June issue.