Originally posted by pgwalsh
You know it's funny that you wrote all this, but you didn't substantiate your argument. I'm glad you like what Apple is doing and I'm sure you realize their market share is declining. It's good to see an opposing view, but put something to back up your argument and give me some detailed analysis of what you think they need to do. They clearly can't stay there current course. If they use the 970, it will help sales, but wont improve their biggest concern, which is market share. Maybe that's why they are getting into the music business and other areas. Maybe they are getting into these areas so when they do allow clones everything is in place.
Hi PG
I am a shareholder with Apple so the well presented expansive idea of yours should appeal, but it doesnt make sense to little old me. About the strategy that is now rolling I wrote -
By "sacrificing" Apple Music Store, the second jewel, in tandem with the iPod, jewel number 3, Apple has already laid the foundation of a fantastic in-house-built opportunity to make OSX available to the masses, but at a steady rate within the capacity of Apple. ie These two Windows-ised products will bring people in to the fold, negating the need to farm OSX, Apple's jewel, out.
A couple of numbers - apparently 50% of internet visits are music related so, as you say too, the move into music downloads isnt a bad idea for a software company. Apple apparently sold 2 million downloads in 16 days to their measly market share of users. When AMS is available to Windows users, the downloads have been projected to be in the tens of millions, so yes, exposure of Apple will sky rocket - and here we disagree. I say that is where the "970 Cupertino-Apple hardware with OSX" sales kick in to meet the new demand for the Mac experience. I thought I wrote that as well, but thanks for prompting me to rephrase.
The PB for instance is the biggest earner, $350m worth, sort of indicating what I thought was a growing trend in desk top replacements. Profits from that line for instance are expandable by increasing turnover or keeping output constant and reducing costs. I suggest they can expect higher turnover as a spin off of music downloads, and so a bit more profit in the kitty. To increase their current overall .95% net profit tally, they have the iPods, which are I believe the most expensive MP3 player out there, and are also the most profitable piece of hardware in the Apple range. 130000 units bought or ordered in week one of launch of AMS is I believe pretty good evidence of the potential of that particular product to raise profit margins in the hardware range. Sucess breeds success and investment in R&D wont be hindered, and so Apple continues to tweak and improve profitability and build quality across the range. Very boring and conservative, but it makes for a solid business.
Does your proposal allow for top of the range clones only? That might not be a bad shout. Rolls Royce dont do runabouts, in all my years in business, I never had a customer complain about the quality of my high price service ( and poor quality is a gripe that lingers on far longer than a moan at a high price actually paid). It is a risk not worth taking to put OSX on mass market non-Apple machines. If the machines play up, its the front end that gets the flak - OSX - by Apple.
Apple stand 100% behind what they sell, and only the minimum of passing the buck outside of Apple is really possible. farm out clones on the scale that would make your plan worthwhile, and control gets lost, and a distinct market advantage goes belly up.
So I say, why would Apple need mass market clones out there to take advantage of the music-generated interest in Macs when they have the cash and the upcoming range of hardware products to grow their own business from within. No forgetting that this strategy of which I am a big fan is an 18 month old project to counter the natural effect of product cycles, and take the company onto another level.
Snuffing out MS influence on computers is a big call, and I dont think your policy is one that Apple are either up to, or should be up for.