Mr. McComb added: "Under Craig and Deborah's leadership, Kate Spade has truly blossomed not only growing more than seven fold in sales, but also dramatically expanding the brand's global presence and lifestyle offerings. They are clear in their goals for the brand going forward and committed to executing them with precision. And I can't think of a better person for the President role than George. He has brought tremendous capability to our company and talent as well. As President, George will play an instrumental role in delivering the long range plan. My excitement is not only personal and heartfelt, but as a shareholder of the Company, I am bullish about what this team, and the one assembled to support them, can accomplish in the years to come. Craig and I will be meeting with analysts and investors in the coming weeks to ensure a smooth transition."

In response, the company earmarked more than two thirds of its R spending through 2010 to adjust to digital media. A series of discussions with Apple in 2002 led Alpine to develop an iPod based music system for BMWs. (See "Who Said Innovating Was Easy?," page 152.) This fall Alpine also introduced its iPod connector for the rest of the car world. An Alpine stereo is needed to use it, naturally, so the company hopes that the iPod gadget will incrementally boost sales of its receivers as well. In the long term, Witt notes, "the entire digital management of entertainment is shifting to the computer" the car stereo market won't be far behind.

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