SiliconAddict said:
Dude the only thing Apple does other then the computer is the iPod. (Do you really think they are making a killing on X Servers?!?) If they didn't have the iPod Apple as a company would be very...
um.... so Apple do servers and DMPs too? Sounds to me like they are trying not to limit themselves to one market segment. And you forgot to mention software. It doesn't matter how small their server market is - a few years ago it didn't exist at all remember.
And I wouldn't put too much faith in just the iPod. Yes it's doing fantastically well right now. Apple and co should be patting themselves on the back. However companies that rely on a single product to keep them going make investors nervous. And rightly so. This year is the first year Apple has had any real competition in the digital music player (DMP) arena. So far they have stayed ahead of the pack by making relatively smart decisions. But I really question long term if this is going to work out in Apple's favor. Unless Apple is willing to take a major hit in profits, something they have never done in the past, to make a sale they very well could become marginalized as cheaper DMP enter the market. Keep in mind that one of the reasons the PC is kicking the Mac's *** is because you can get a computer for aprox half a grand. People are willing to live with that kind of quality. If this attitude transfers over to the DMP market Apple is screwed if they don't follow the trend of cheaper devices. Also keep in mind that in the DMP market they still don't even own 50%. Its something like 30-35%. Yes they are the largest single portion DMP market but when it comes to market share the are still behind the rest.
ok...on that logic Michael Dell must be an insominiac. Poor guy - he's *only* got 32% of the WinTel PC market.
And YES that number IS important. Apple is not only battling for first place in the DMP market but also digital audio codec market. By not owning at least 50% of the market they risk having AAC being relegated to 3rd place for format after WMA and MP3. WMA still has a strong lead right now. They aren't an industry standard like AAC is but they don't have to be. Nab enough market share and they will become the pseudo standard by default.
Fair enough but really - if AAC genuinely looks like losing, I think Steve will be mature enough this time to know to get compatible. If you doubt that check how much Windows compatible stuff they've got now: OSX, iPod, iTunes, iTMS, Filemaker etc. Plus they've dropped some of their proprietary standards (eg ADC)
Personally, I think Sony is the one with the most power to dictate the music format - since they are music producers, music sellers and DMP manufacturers.
If Apple is going to continue to thrive they need to get beyond the DMP and the PC. I seriously hope we start seeing other apple products come out on the market that can leverage their ability create innovative "designs" that just work. Cell phone anyone? Cordless VoIP phone for the home that runs through your computer? Apple DVR? There is a world of consumer electronics that Apple could make a massive killing on. I hope to see this happen sooner rather then later.
So? You expect this to happen overnight? It's a slow process. You criticized Apple's server market, yet at least they're expanding their product base. You criticize their iPod market share, yet at least they're in there.
So if (and probably when) they get into the things you suggest, are you going to bag them again because they won't capture enough market to keep you happy?
Apple are doing what you want - trying to get into different markets so they aren't dependent on any one product for their success. Yet you still bag them for it!
