Apple: smart products, stupid businessDecember 23, 2007
Let me first issue the following disclaimer: I am not an Apple user. I used to have an old Apple SE 30 many years ago, but since then I have never owned any apple products. I don’t own an IPhone. I don’t own an IPod. I have never purchased music from the ITunes music store. You get the picture. Despite all that, I have a great deal of respect for Apple as a creator of innovative and reliable technology. I don’t personally use their products (because I’m too cheap) but I do pay close attention when they release a new product… And I like to watch the odd Steve Jobs presentation or demo video from their website. What I take issue with is quite simple — their arrogance. Apple is able to get away with business practices that would easily be considered abusive or monopolistic if they were attempted by any other company, like say, Microsoft. For example, their ridiculous network contracts, how they secretly steal private data off your IPhone, how they block your IPod from playing music from any other music store, how they close the IPhone platform, and so on. How they can believe it’s possible to engage in such anti-competitive business practices with no serious negative repercussions (”blow back”) is beyond me. Apple is really pushing it. In my opinion, Steve Jobs is repeating the same mistake he made all those years ago when he attempted to monopolize the PC market. Apple had a lead and the best technology, but they refused to license any of their ideas. Investors are not stupid. They aren’t going to ignore a massively profitable new business opportunity because of some ridiculous attempt by Steve Jobs to bully them out of the industry. If there is money to be made, people will find a way to make it. They will create their own products. Maybe they won’t be as good initially, but eventually they will catch up — and I can pretty much guarantee they will always be cheaper. Ultimately, Apple will either be forced to accept Microsoft software and Intel CPUs (cough) or dive right back into oblivion. Meaning, they will eventually be forced to open all their platforms to more competition. The only question is whether they will wake up and accept reality before they lose all their market share, again. Given the incredible run their stock has had recently, Apple is a popular investment among non-technical people. As an engineer, I wouldn’t touch it.
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This is from 11 months ago.
http://macdailynews.com/index.php/weblog/comments/8206/
Today… Apple Computer, Inc. passed Dell, Inc. in market value. That’s right, at market close Apple Computer ($72,132,428,843) is now worth more than Dell ($71,970,702,760).
P.S. - Apple Macintosh computers have been Intel-based for about 2 years now.
Dale - That only proves the need to wake up the masses to this a(pple)buse. Too many people have too much faith in a business model that can’t succeed in the long run. Apple is cool today, but cool fades with age.
By the way, can someone who owns an IPhone tell me if their face smudges the screen a lot? What about their fingers? I’m still not even sold on the whole touch idea.
I own an iPhone, no smudging at all, you can’t see finger or face smudges. I have a screen protector on it as well.
Classic trollbait. Well, since I’m here, I’ll bite.
“Let me first issue the following disclaimer: I am not an Apple user…”
Shorter version: “I don’t use Apple products or do any kind of business with the company, but here’s why they suck.”
“What I take issue with is quite simple — their arrogance. Apple is able to get away with business practices that would easily be considered abusive or monopolistic if they were attempted by any other company, like say, Microsoft.”
Shorter version: “I can’t believe what customers will put up with to get products that actually work.”
“For example, their ridiculous network contracts,”
You mean “carrier exclusivity,” which is pretty much standard practice? Get over yourself. I’d say iPhone sales pretty much show people don’t generally care.
“how they secretly steal private data off your IPhone”
Bogus: http://www.macnn.com/articles/07/11/20/iphone.not.tracking.imei/
“how they block your IPod from playing music from any other music store”
This is a flat-out lie. I can download music from Amazon MP3 or eMusic and play it on the iPod with no problem. I can get books from Audible or Simply Audiobooks and use them without issue. I can rip my own CDs, if I’m feeling really skippy.
I suspect what you’re trying to say is “The iPod doesn’t support Playsforsure (or whatever they’re calling it this week). Of course, that doesn’t even work on the Zune, so…
“how they close the IPhone platform,”
By providing an SDK in February.
“and so on.”
This is a fudge line designed to make it appear you’ve got more up your sleeve. Which is plainly not the case.
“How they can believe it’s possible to engage in such anti-competitive business practices with no serious negative repercussions (”blow back”) is beyond me.”
I suspect they look over their sales numbers quarterly and conclude that, by and large, their customers are happy. I’ll also note that with the possible exception of the network exclusivity issue, you have yet to cite a single case of anti-competitive behavior.
“In my opinion, Steve Jobs is repeating the same mistake he made all those years ago when he attempted to monopolize the PC market.”
1. You make the common error of attributing all of Apple’s actions to Steve Jobs, as if the rest of the company and the board doesn’t exist. You’re trolling because you can’t stand Jobs.
2. I don’t think you could ever factually have accused Apple of trying to monopolize the PC market.
“Apple had a lead and the best technology, but they refused to license any of their ideas.”
This chestnut again? Apple DID license their technology, remember? And it nearly killed the company.
“Investors are not stupid.”
Years upon years of statistics suggest otherwise.
“They aren’t going to ignore a massively profitable new business opportunity because of some ridiculous attempt by Steve Jobs to bully them out of the industry.”
Which industry, precisely, are you talking about? That’s not a rhetorical questions.
“If there is money to be made, people will find a way to make it. They will create their own products. Maybe they won’t be as good initially, but eventually they will catch up — and I can pretty much guarantee they will always be cheaper.”
Really? That’s great. I’m sure Apple’s products will remain completely static. While you’re at it, explain to me how much better (and cheaper) Vista Ultimate is than OS X 10.5. Translation of the above: “Apple is expensive, and they suck.”
You have nothing new to say, do you? This is the same critique that’s been made for over twenty years now, and it has yet to bear real fruit. You’re not acquitting yourself well, thus far.
“Ultimately, Apple will either be forced to accept Microsoft software”
You mean like Office? Or Windows? Yeah, I can see where that might be a problem. :::snort:::
“and Intel CPUs (cough) or dive right back into oblivion.”
Don’t get out much, do you?
“Meaning, they will eventually be forced to open all their platforms to more competition. The only question is whether they will wake up and accept reality before they lose all their market share, again.”
Are you really that thick? Again, this is not a rhetorical question. In what market does Apple operate without competition? Go on, do your research (this time). I’ll wait.
“Given the incredible run their stock has had recently, Apple is a popular investment among non-technical people. As an engineer, I wouldn’t touch it.”
Got it…I should have read from the bottom up. You’re an engineer. That pretty much explains everything.
Go about your business folks, nothing to read hear.
@John: Yes, it smears a bit, but no more than any other phone I’ve had (I’ve got pretty oily skin).
Brian, thanks for the great reply.
(1) I don’t think Apple sucks at all. I think they make great products, I just hate their attitude.
(2) “I can’t believe what customers will put up with to get products that actually work.”
That’s classic Apple fanboy nonsense. The reality is that Microsoft Windows XP works just fine. And I actually have Vista, if you get it pre-installed on a new PC it works just fine also. Mind you I dual boot with Ubuntu, but that’s another matter. I like to support Linux in principle even though it doesn’t work quite as well as Windows.
I have a sandisk MP3 player, never had any problems with it.
I have a blackberry phone, never had any problems with it.
There are many companies that make great products and don’t offer the same ridiculous restrictions that come along with owning Apple.
(3) Not just the exclusivity deals, but the nature of their hostility towards their own users. If someone owns an Iphone they should own the Iphone, they aren’t renting it. Apple should not be bricking the Iphones (deliberately) with updates. Their attitude is what makes me sick. They are control freaks.
(4) Apple should clarify the privacy issue once and foreall.
(5) Apple is restricting your ipod music sources, read the article I posted. The Zune doesn’t have 80% market share. You can’t be abusing a monopoly with 10% market share.
(6) I’m happy to hear there will be an SDK. Steve Jobs announced quite publicly before the Iphone was first released that it was going to be a closed platform and that third party applications would have to be web based.
(7) You’re right, many people don’t care. Hence this post.
(8) These decisions reflect Steve Jobs’ business philosophy, who cares if there are other people on the board that agree or disagree. If Steve wasn’t supporting the positions they wouldn’t proceed.
(9) Investors are not ALL stupid. There were many successful businesses built on competing PC platforms. You don’t deny that, do you?
(10) I’m talking about the profitable PC business.
(11) The Microsoft/Intel comment was tongue in cheek. Apple capitulated once because of market realities. That day will eventually come for their other products as well. Better they get on the right side of history while they can still salvage their market share.
Brian, here they go again. What do you think about this?
http://gizmodo.com/338948/