Apple Cellphone, Media Hub and Business Models

[SPUY767]

Mossberg Is Apple's Darling Analyst. Whatever Mossberg says, he's in Apple's corner for sure.

I would love to have an Apple Cellphone, but it would have to be available from more than one carrier to really work I think.

BTW - Anybody notice Steve now owns more of Disney than anyone else now? - 6.4 % and sits on their Board? He obtained about $4 Billion in Disney stock last week. So he went from being worth about $1 Billion to over $4 Billion last week. That's gotta be some kind of net worth increase in record time record doesn't it? 400% in a day.

I am wondering why this was not posted as a news item on the cover of MacRumors?

'Cept for that homeless guy I gave five bucks last week, his net worth went up by a few thousand percent!

 

[IJ Reilly]

I think Mossberg is right, but for the wrong reasons. Microsoft's so-called "component model" was never really Microsoft's model, if as I assume, he's referring to the PC. The PC of course was designed by IBM not Microsoft, and it was only by virtue of an historical accident (IBM not owning the OS, and the PC architecture being cloned) that the "component model" worked for Microsoft. I think it's a better question to ask whether the "component model" has worked for Microsoft in any other area -- e.g., have they made money from Windows CE? I think they have made little or none on this or any other "component" effort (aside from Windows), which is what casts the most serious doubt on the virtues of the "component model," and provides the biggest hint about which approach will be the most successful in the future.

 

[barcodebawtv]

Here here

Great article, this "end to end" process that he talks about is exactly what has led me to Macs. I did some programming with Microsoft and was baffled that even their "high end" apps didn't communicate with one another.
So I am an official zealot now... minus actually owning a mac. Pathetic yes, I'm just anxiously awaiting the elusive MacBook.

 

[jaxstate]

What you lead you to believe that they are not making money from Windows CE and Windows MC.

I think Mossberg is right, but for the wrong reasons. Microsoft's so-called "component model" was never really Microsoft's model, if as I assume, he's referring to the PC. The PC of course was designed by IBM not Microsoft, and it was only by virtue of an historical accident (IBM not owning the OS, and the PC architecture being cloned) that the "component model" worked for Microsoft. I think it's a better question to ask whether the "component model" has worked for Microsoft in any other area -- e.g., have they made money from Windows CE? I think they have made little or none on this or any other "component" effort (aside from Windows), which is what casts the most serious doubt on the virtues of the "component model," and provides the biggest hint about which approach will be the most successful in the future.

They only product I know for sure where they are taking a loss is the XBOX, which they make up for with software.

 

[drwam]

Interesting comment

Hey, Mossberg is a mainstream reporter for a business oriented journal. I am sure that he would not write of inside info from Apple without Apple's approval. If he did not have that approval, he would get ZERO inside info in the future. So, think of this as an official Apple statement.
Apple has had a great run with the iPod which, while not over, is peaking. When you look to how young folks run their lives now, the cell phone is a BIG part of their lives. The iPod experience will not be taken over by commodity cheap music players anytime soon. However, those functions built into cell phones opens a big market to expand the business. If Apple does not build it, someone (or many someones) will. Folks will buy the single device that does everything and leave their iPods to collect dust. There are huge engineering problems (battery life) and huge business problems (cell phone carriers). But Apple has gotta go there. The Mossberg piece means that Apple wants people who buy stock to KNOW they are going there and not to unload their stock because the iPod is peaking.
The same argument can be made for video on demand. Apple needs to provide a compelling end to end experience or someone(s) else will make millions off of something inferior. They gotta go there and I pray they have known this for some time and have done really good development work to date.
I have always believed that the Intel switch was largely driven by the need to use more off the shelf components and keep costs down since this is critical to the very price sensitive consumer electronics market. Obviously, none of us are really impressed that Apple is using the Intel chipsets to lower the cost of Macs. I had originally hoped that there would be more Apple-Intel consumer electronics by last Christmas. They had better not miss this Christmas...
Real artists ship.

 

[dongmin]

As far as media-oriented phones go, I'd look into a Sony Ericsson. Just got my K750i yesterday. I gotta say, it's impressive.

-2 megapixel camera that actually takes pictures that you wanna print
-mp3/mp4 player + fm radio with good sound
-fully-functional bluetooth
-memory stick slot
-good interface
-syncs perfectly with my Mac
-other bells and whistles

Cnet review

It's not quite as slick as an iPod, but for $300 (got mine for $150 with contract), it's pretty damn feature-packed little phone. SE's got some cool stuff in the works, including the K800i which one-ups the K750i. Too bad most of their stuff doesn't get released in the States.

 

[Scruff]

The only way I can see an iPhone working would be if it was an expansion of the iPod. You get plenty of MP3 playing phones nowadays, but none of them can really compete with something along the lines of the iPod. An iPod/Phone would certainly win over people who use their phone as an MP3 player, and also all the people that think the price of an iPod is a bit high... they'd probably see more value in a combined MP3 player/phone.

And yeah, I just can't be bothered carrying BOTH my phone and my iPod. It's just so tiresome... .

 

[peharri]

I think Mossberg is right, but for the wrong reasons. Microsoft's so-called "component model" was never really Microsoft's model, if as I assume, he's referring to the PC. The PC of course was designed by IBM not Microsoft, and it was only by virtue of an historical accident (IBM not owning the OS, and the PC architecture being cloned) that the "component model" worked for Microsoft.

Microsoft didn't start off with MSDOS. They started off with Microsoft BASIC. Their initial model was, indeed, to sell ports of MS BASIC to computer manufacturers to bundle with their computers. With many home computers, BASIC ended up being the whole operating system, not just a language.

So they've been at this for a long time, and while it's been portrayed as lucky intuition on Gate's part that he sold DOS to IBM with the provision Microsoft be allowed to sell it to third parties, I don't think it was intuition, I think this was normal business practice for Microsoft. The IBM deal is where it got the spotlight.

 

[Multimedia]

Steve Now Ranks 140th Richest Person On Earth At $4.4 Billion And Growing

https://forums.macrumors.com/threads/175188/

Not quite last week but it was big news.

It HAPPENED LAST Friday and it turned out to be $4 Billion not $3.5 Billion. His total is now over $4.4 Billion ranking 140 among Billionaires along with former Disney mogul David Geffin. Oh the irony.

Oprah is only $1.4 Billion ranking 562.
Trump is only $2.6 Billion ranking 278.
Ralph Lauren is only $3.6 Billion ranking 185.

 

[iHateGates]

iThink iWouldbuy iPhone

I'd love to see apple do a phone. If it has PDA capability I would probably buy one for the same reason. One less thing to carry. But more realistically, I'd like to see apple do a phone just because their design and functionality is so clean and beautiful. So for that reason, I'd love to see the apple design team tackle a car, bedroom furniture, TV, musical instruments, whatever.

 

[j26]

As far as media-oriented phones go, I'd look into a Sony Ericsson. Just got my K750i yesterday. I gotta say, it's impressive.

-2 megapixel camera that actually takes pictures that you wanna print
-mp3 player + fm radio with good sound
-fully-functional bluetooth
-memory stick slot
-good interface
-syncs perfectly with my Mac
-other bells and whistles

Cnet review

It's not quite as slick as an iPod, but for $300 (got mine for $150 with contract), it's pretty damn feature-packed little phone. SE's got some cool stuff in the works, including the K800i which one-ups the K750i. Too bad most of their stuff doesn't get released in the States.

It is a great phone, and that is the sort of route that Apple should take, with one major proviso. Make it an iPod first, then add a stripped down OSX (iPhoto, iTunes, Mail, Address Book and iCal), and then add in the phone. If people have all that, then the phone function (which should be a relatively straightforward add-on) is a bonus. With a stripped down OSX, let third partiy providers add other functionailty.

It shouldn't be a phone with iPod functionality added on. It sounds weird, but there is a major difference between the approaches.

 

[IJ Reilly]

What you lead you to believe that they are not making money from Windows CE and Windows MC.

They only product I know for sure where they are taking a loss is the XBOX, which they make up for with software.

I have read in the past that Microsoft's compact OSs are at best marginally profitable products, though this may have changed, and the realities are probably difficult to tease out of their financial reports. Another component model effort to consider is the PalmOS. Palm/3Com made money selling Palm devices for a while at least (end-to-end model), but splitting the OS from the hardware has hardly been a blockbuster. As I said, I think Mossberg is generally correct, if not entirely for the right reasons.

As for the Xbox, last I heard, it's still a net money-loser, software sales included.

 

[nbs2]

It is a great phone, and that is the sort of route that Apple should take, with one major proviso. Make it an iPod first, then add a stripped down OSX (iPhoto, iTunes, Mail, Address Book and iCal), and then add in the phone. If people have all that, then the phone function (which should be a relatively straightforward add-on) is a bonus. With a stripped down OSX, let third partiy providers add other functionailty.

It shouldn't be a phone with iPod functionality added on. It sounds weird, but there is a major difference between the approaches.

That, I think is the great debate. I find myself in the opposite camp. If I have a phone, the most important thing is that the phone works. Everything else is irrelevant. That being said, I still think that a BTO phone would be wonderful. That way I could get a decent BT phone w/o a camera...

 

[mtrctyjoe]

May 19th

I'd say we will be seeing something more the a MacBook come May 19th. Ready and waiting.

 

[IJ Reilly]

Microsoft didn't start off with MSDOS. They started off with Microsoft BASIC. Their initial model was, indeed, to sell ports of MS BASIC to computer manufacturers to bundle with their computers. With many home computers, BASIC ended up being the whole operating system, not just a language.

True, but this is basically software/firmware sales, and I don't believe it's what Mossberg was referencing as an example of the component model. I think he meant PCs and Windows.

So they've been at this for a long time, and while it's been portrayed as lucky intuition on Gate's part that he sold DOS to IBM with the provision Microsoft be allowed to sell it to third parties, I don't think it was intuition, I think this was normal business practice for Microsoft. The IBM deal is where it got the spotlight.

In a sense, yes, but cloning didn't exist at the time and AFAIK, wasn't predicted by anyone. Normal business practice maybe, but it took a stroke of luck for it to pay off, especially like it did.

 

[nagromme]

I don't believe Mossberg has any hard inside info on phones etc. He BELIEVES it, but I think it's educated guesses and some good rumors, not to be taken TOO seriously.

I am not sure when Mr. Mossberg will move his head out of Mr. Jobs ass! ANyway no news here just old sh*t in brand spanking new Journal.

Mossberg Is Apple's Darling Analyst. Whatever Mossberg says, he's in Apple's corner for sure.

Not so. He has criticized Apple harshly many times--less so recently, because he's found less to complain about. But people who assume that anyone who appreciates Mac products must be biased... well, they may be the true "zealots."

 

[jaxstate]

**SLAPS KNEE laughing**@ only 1.4,2.6, and 3.6

It HAPPENED LAST Friday and it turned out to be $4 Billion not $3.5 Billion. His total is now over $4.4 Billion ranking 140 among Billionaires along with former Disney mogul David Geffin. Oh the irony.

Oprah is only $1.4 Billion ranking 562.
Trump is only $2.6 Billion ranking 278.
Ralph Lauren is only $3.6 Billion ranking 185.

These numbers are amazing. How in the bloody hell did Mr. Gates get 50B. Sheesh.

 

[jayb2000]

It HAPPENED LAST Friday

I think the confusion lies over the fact that when Disney bought Pixar, it was announced months ago. There were several threads about it at the time.

However, since it just CLOSED on Friday, it is now official.



ON TOPIC:
I think Mossberg appears to be a fair journalist. He has taken Apple to task when needed, and praised them when warranted. I would guess he has several contacts inside Apple that might have given him this info.

I am all for it, when it finally comes out.

 

[ddrueckhammer]

**SLAPS KNEE laughing**@ only 1.4,2.6, and 3.6

These numbers are amazing. How in the bloody hell did Mr. Gates get 50B. Sheesh.

Whats even more crazy is I read somewhere (and I'm not sure if it is still true) that the owner of IKEA had overtaken Gates as the richest man in the world. How the hell do you make that kind of money selling cheap particle board furniture for dorm rooms? BTW I'm a college student so I do have some experience with this.

 

[chewbaccapits]

I don't really need a media hub, and I think they waited too long to get into the mobile phone market to catch up. Just like I think MS, Dell, ... waited too long to get in to the MP3 market.

Apple enter the MP3 market when it was already saturated with players...Most were claiming the demise of the product BECAUSE Apple came too late to the party.......

 

[boncellis]

I could see the TV companies pulling their programs off the iTMS if this happens. So the people without the "DVR" would feel shafted.

I agree. Although look what ABC did last week, they put streaming versions of their primetime shows on the web with a few commercials and it works prett smoothly. I could see more networks doing this (after the show has already aired), and if so, they're already cutting into TV Show sales in the iTMS.

The iTMS shows were meant to be for the iPod, but there has to be a lot of overlap with people buying episodes to watch on demand at home as well. If the streaming thing catches on and iTMS sales suffer, then Apple wouldn't have a lot of reason not to include a DVR. But then, what makes sense to me doesn't make the same amount of sense in Cupertino.

 

[ScubaDuc]

As far as media-oriented phones go, I'd look into a Sony Ericsson. Just got my K750i yesterday. I gotta say, it's impressive.

-2 megapixel camera that actually takes pictures that you wanna print
-mp3 player + fm radio with good sound
-fully-functional bluetooth
-memory stick slot
-good interface
-syncs perfectly with my Mac
-other bells and whistles

Cnet review

It's not quite as slick as an iPod, but for $300 (got mine for $150 with contract), it's pretty damn feature-packed little phone. SE's got some cool stuff in the works, including the K800i which one-ups the K750i. Too bad most of their stuff doesn't get released in the States.

Not nearly as nice and reliable as Nokia phones: my 1,500 Nokia shares are all speaking in unison... That is what Apple needs; a top of the line independent company to partner with that has a large presence in the infrastructure market as well as being the leading GSM manufacturer. Nokia has the leverage to "twist" the arm of carriers and bring new products to market....

 

[MacsRgr8]

Whats even more crazy is I read somewhere (and I'm not sure if it is still true) that the owner of IKEA had overtaken Gates as the richest man in the world. How the hell do you make that kind of money selling cheap particle board furniture for dorm rooms? BTW I'm a college student so I do have some experience with this.

Indeed.. and why aren't the oil sheiks all over the top 10 by now?
Can't be that they are earning less on oil nowadays.

 

[MacBookDJ]

How in the bloody hell did Mr. Gates get 50B. Sheesh.

I think he started a really big company of some sort.

 

[netdog]

I don't believe Mossberg has any hard inside info on phones etc. He BELIEVES it, but I think it's educated guesses and some good rumors, not to be taken TOO seriously.

That only means that you don't know much about Mossberg's relationship with Apple. There is no way that he published this without Apple's blessing.