Editing Macintosh Classic (section)

===Release===
''[[MacWEEK]]'' magazine reported on July 10, 1990, that Apple had paid {{US$|long=no|1 million}} to Modular Computer Systems Inc., a subsidiary of [[Daimler-Benz AG]], for the right to use the "Classic" name as part of a five-year contract.<ref name="classicspeculation">{{Cite news |last=Farber |first=Daniel |date=June 21, 1080 |title=Apple shells out $1 million for 'Classic' name |page=1 |work=[[MacWEEK]]}}</ref> Apple did not renew the contract when it ended.<ref>{{Cite book |last=Linzmayer |first=Owen W |title=Apple Confidential |date=1999 |publisher=No Starch Press |isbn=1-886411-31-X |edition=1st |page=208}}</ref> ''MacWEEK'' speculated the Macintosh Classic would use the same {{val|8|ul=MHz}} [[Motorola 68000]] [[microprocessor]] and {{convert|9|in|cm|adj=on}} display as its predecessors and that the Classic would be priced from {{val|p=$|1500| to |2150|fmt=commas}}.<ref name="classicspeculation" />

On October 15, 1990, [[John Sculley]] (then Apple [[CEO]]) introduced the Classic at a press conference, announcing that pricing would start at {{US$|long=no|1000}}<ref name="pricing">{{Cite news |last=Hertzberg |first=Lanny |date=November–December 1990 |title=New Macs from Apple |page=6 |work=Electronic Learning}}</ref> and saying, "To reach new customers, we didn't just lower the prices of our existing products. We redesigned these computers from the ground up with the features customers have told us they value most."<ref>{{Cite news |date=October 22, 1990 |title=Apple Computer: lower cost Mac PCs target new customers. 50 percent less for entry-level system. |page=3 |work=EDGE: Work-Group Computing Report}}</ref> Apple's new pricing strategy caused concern among investors, who thought it would reduce [[profit margin]]s.<ref name="investorconcern">{{Cite news |date=October 16, 1990 |title=Apple Unveils Low-Cost Macs |work=Albany Times Union |location=Albany, NY}}</ref> Brodie Keast, an Apple product marketing manager, said, "We are prepared to do whatever it takes to reach more people with Macintosh{{nbsp}}[...] The plan is to get as aggressive on price as we need to be."<ref name="investorconcern" /> After the release of the Classic, Apple's unit price of its publicly listed shares closed at {{US$|long=no|27.75}} per share, down {{US$|long=no|0.50}} from October 12, 1990, and far below its previous 12-month high of {{US$|long=no|50.37}}.<ref name="investorconcern" />

The Classic was released in Europe and Japan concurrently with the United States release. In Japan, the Classic retailed for {{JPY|198000|link=yes}} ({{US$|long=no|1523}}),<ref name="japan">{{Cite news |last=Yazawa |first=Naoyuki |date=October 18, 1990 |title=Japan: Apple prices new Macs, cuts old prices |work=Newsbytes (Newswire)}}</ref> more than in the US but matching the price of the [[Toshiba|Toshiba Dynabook]] laptop computer.<ref name="japan" />

After spending {{US$|long=no|40 million}} marketing the Classic to first-time buyers,<ref name="demand2">{{Cite news |last=Zachary |first=G. Pascal |date=November 21, 1990 |title=Demand turns new Macintosh into rare Apple |work=[[Wall Street Journal]] (Western Edition)}}</ref> Apple had difficulty meeting the high demand.<ref name="demand">{{Cite news |last=Borrell |first=Jerry |date=March 1991 |title=How does Apple deal with success? In fiscal 1991 Apple Computer will ship over 1&nbsp;million Macintoshes |page=23 |work=[[Macworld]]}}</ref> Apple doubled its manufacturing space in 1990 by expanding its [[Singapore]] and [[Cork (city)|Cork, Ireland]] factories, where the Classic was assembled.<ref name="demand" /> Air freight, rather than sea shipping, was used to speed delivery.<ref name="demand" /> The shortage caused concern among dealers, who blamed Apple's poor business planning.<ref name="demand2" />

Macintosh Classics and [[Macintosh LC|LCs]] had been given to [[Scholastic Corporation|Scholastic Software]] 12&nbsp;weeks before they were officially announced,<ref name="masses">{{Cite journal |date=April 1991 |title=Macs for the masses |journal=[[Compute!]] |volume=13 |issue=4 |page=26}}</ref> and Scholastic planned to release 16&nbsp;new Macintosh products in 1991.<ref name="masses" /> Peter Kelman, Scholastic's publisher, predicted that the Macintosh would become "the school machine of the nineties."<ref name="masses" /> The Classic was sold to schools for {{US$|long=no|800}}.<ref name="pricing" /> This, and the availability of educational software, led to the Classic's popularity in the education sector.<ref>{{Cite news |last=Krey |first=Michael |date=March 25, 1991 |title=Classic is on backorder |page=18 |work=The Business Journal}}</ref>