company,leaving Mr.Jobs free to have big ideas. The Changes are provided costly,Japan's Canon-the biggest shareholder in NeXT, which is not publicly quoted-this year added another $55m to the $100m it chipped in to help launch the firm.R D is consuming around 10%of NeXT's annual revenues.Much of that is going towards what NeXT hopes will be a blockbuster product,NeXTstep 486,due to go-on sales in July 1993.Unlike NeXT's existing software,the $995 package will run on most of today's fast PCs.It could create a bigger market for object-oriented software.Although NeXT started by selling computers,if NeXTstep 486 succeeds,it will be well on the way to becoming a software firm.That pleases Mr.Jobs,who estimates that software already occupies 90%of his time:profits on operating-system software are vast. NeXT could use them.This year its sales will hit just over $140m,up from $128m in 1991,Mr.Jobs claims that sales in the second half of 1992 are 40%up on a year ago- and that sales to corporate customers are three times their level a year ago."Our losses are behind us",he says.But at the rate NeXT is investing in R&D,it is unlikely to see much in the way of profits this year or next.The firm's long-awaited stock market floatation will almost certainly be delayed until 1994. NeXT's biggest headache is that,whereas it is eager to compete on technology,its rivals are increasingly competing on price.Last year NeXT's share of the workstation market was just 5.6%by unit sales,way behind Sun Microsystems,Hewlett-Packard and DEC,and even lower in value terms.In a year that has seen the three market leaders discounting furiously,NeXT is unlikely to have increased its market share significantly. Mr.Jobs is betting NeXT's survival on its software which,he claims,is five years ahead of Sun's;he also reckons NeXT's manufacturing costs are way below its rivals. That should cushion his firm in a price war.Nonetheless,NeXT is clearly having to discount to win sales,which means that profitability may be even further off than Mr. Jobs hopes.And Sun,being on the way to laundering NeXT and becoming the head of its software-engineering unit,has joined NeXT's larger rival."Sun wants to kill us", laments Mr.Jobs.It maybe yet succeed 3.Answer Keys:(10 points,2 points each) 1)A2)B3)C4)A5)D 4.Listen again to part of the report and fill in the following blanks. The Changes are provided costly,Japan's Canon-the biggest shareholder in NeXT, which is not publicly quoted-this year added another $55m to the 100m it chipped in to help launch the firm.R D is consuming around 10%of NeXT's annual revenues.Much of that is going towards what NeXT hopes will be a blockbustercompany, leaving Mr. Jobs free to have big ideas. The Changes are provided costly, Japan’s Canon – the biggest shareholder in NeXT, which is not publicly quoted – this year added another $55m to the $100m it chipped in to help launch the firm. R & D is consuming around 10% of NeXT’s annual revenues. Much of that is going towards what NeXT hopes will be a blockbuster product, NeXTstep 486, due to go-on sales in July 1993. Unlike NeXT’s existing software, the $995 package will run on most of today’s fast PCs. It could create a bigger market for object-oriented software. Although NeXT started by selling computers, if NeXTstep 486 succeeds, it will be well on the way to becoming a software firm. That pleases Mr. Jobs, who estimates that software already occupies 90% of his time: profits on operating-system software are vast. NeXT could use them. This year its sales will hit just over $140m, up from $128m in 1991, Mr. Jobs claims that sales in the second half of 1992 are 40% up on a year ago – and that sales to corporate customers are three times their level a year ago. “Our losses are behind us”, he says. But at the rate NeXT is investing in R & D, it is unlikely to see much in the way of profits this year or next. The firm’s long-awaited stock market floatation will almost certainly be delayed until 1994. NeXT’s biggest headache is that, whereas it is eager to compete on technology, its rivals are increasingly competing on price. Last year NeXT’s share of the workstation market was just 5.6% by unit sales, way behind Sun Microsystems, Hewlett-Packard and DEC, and even lower in value terms. In a year that has seen the three market leaders discounting furiously, NeXT is unlikely to have increased its market share significantly. Mr. Jobs is betting NeXT’s survival on its software which, he claims, is five years ahead of Sun’s; he also reckons NeXT’s manufacturing costs are way below its rivals. That should cushion his firm in a price war. Nonetheless, NeXT is clearly having to discount to win sales, which means that profitability may be even further off than Mr. Jobs hopes. And Sun, being on the way to laundering NeXT and becoming the head of its software-engineering unit, has joined NeXT’s larger rival. “Sun wants to kill us”, laments Mr. Jobs. It maybe yet succeed. 3. Answer Keys: (10 points, 2 points each) 1) A 2) B 3) C 4) A 5) D 4. Listen again to part of the report and fill in the following blanks. The Changes are provided costly, Japan’s Canon – the biggest shareholder in NeXT, which is not publicly quoted – this year added another $55m to the $ 100m it chipped in to help launch the firm. R & D is consuming around 10% of NeXT’s annual revenues. Much of that is going towards what NeXT hopes will be a blockbuster