Hey Chris,
Great article.
Welcome to the club of "If you don't love what I love, then I hate you."
I think Murphy Brown said it best, when she quipped that "the only important thing was our taste in music." (Overpriced at 99 cents, of course.)
Ring the bell. Orwell wins again. (Lemmings are slow learners.)
-steve
"Why does Apple think that making their computers smaller or thinner is nearly as important as price and horsepower."-gwmac
Because Apple is vain, and cares more about what the computer looks like than what is inside them. They constantly cut corners on the guts of the machine.
It is a great irony that the "engineer" Steve Jobs who loves to tinker with computers, should think that others should not be allowed to tinker, too. It's like the old-school thinking of never asking a doctor a question, or perhaps Oliver asking for "more" is a better equivalent. We have the best water-down soup there is, how dare consumers think they know what they want? :-)
Has cheaper prices and more horsepower ever failed as a winning formula? It seems to have worked well for the iPod. The MacPro needs to start at $1299. And Apple across the board should be cutting their prices. Their excessive profits all stem from overcharging users. They don't necessarily need a new tower, just less expensive products.
Other manufacturers have to pay Microsoft to build a box; Apple has a huge price advantage that they let go to waste by trying to double-dip and maximize profits.
Being a Mac elitist, of course I laugh. :-)
But I also cringe, too.
Nobody wants to see a friend harm themselves, or anything bad happen to them. The thing is, I don't see Microsoft hurting as anybody's gain, whereas Apple does. It is far better to have no enemies. That is the true essence of Thinking Different. Of course, when you don't fear what others fear, (or love what others love,) they think you are crazy and untrustworthy.
For there to be an infidel there has to be an orthodoxy first. Imagine a world without battles for orthodoxy.
Would it be so terrible if people made their own low-cost Macs, for example?
If it wasn't just Microsoft vs Apple, then you might not think of yourself as a Microsoft infidel. Like our politics, people live in a binary world intellectually. The Apple Stores can't be just a store, they have to be "genius." It isn't an MP3 player, it's the "best MP3 player in the world." It isn't a computer, "it's the best and most stable operating the world has ever seen." And, of course, it MUST be perpetually improved, and quickly. One must be first and best in everything that one does. One must conquer the "evil" others who lurk in the shadows, ill-defined and guilty by association and accusation.
It is not a random coincidence that fascists also think of themselves as superior to everyone else. They lift themselves up by putting others down. Fascists want total control and perpetual adulation. Nothing makes that easier than a clearly defined enemy, which is what Microsoft has provided to Apple (and vice-versa.) The "I'm a Mac, I'm a PC" ads are built around this trite dichotomy.
Another way to put it: when there were multiple OS's, you used to find the right software, and then buy the hardware to run it. Apple claims that it has the software and hardware you need, but only if you are doing nothing serious with the computer (music, games, photos.) Apple has always bristled at the implication that it was a "toy" machine, and not a business machine. But look at what they sell, how they sell it, and who they sell it to. That is pretty much how they act, and their commercials are equally juvenile with burning bunnies, tanks, dancing and music, and mocking PC. These are all based on a "good vs evil" tautology.
The great irony of partisan (fascist) people is that they do not realize just how partisan (fascist) they are. Their fear of "the other guy" makes everything they do appear as "commonsense" to themselves.
All the VAR's I've spoken to are interested in one thing: selling products profitably.
If Apple can't supply that basic demand for them, then how will it do it for itself any better? The "genius of The Apple Stores" (see headline) just seems like an oxymoron to me. Anyway, I think you and I agree on this point Robomac.
If and when Apple gets in trouble, it won't be because of their computers, but because of a reliance on a revenue stream that disappears and the overhead of the stores. It takes more than one hit to hurt a giant, in any case.
Chubba, I am not negative (or inane) I am just describing the situation as it exists. "Genius" is false praise, unless narrowly crafted. Is Wal-Mart a genius store, or Target? Apple is a retailer. How does one even be a genius retailer? All retail is is a warehouse. Decor and knowledgeable staff is just basic competency, isn't it? A lot of people get that from PC VAR's, just not many Apple users anymore.
As far as what I will contribute to the digital age goes, I ain't dead yet. lol :-)
Sometimes I wonder where Apple would be if they didn't have "evil" Microsoft to compare themselves to. What if all the OS's that used to exist still existed, and it wasn't just down to these two players? Another question for another time perhaps.
The Big Box retailers shift constantly, which is why Apple needs their own stores. I agree on that point. But the VAR's need to be independent, that's what makes them a VAR. All the PC companies that currently exist would sell and support Mac's if Apple would just give them a fair shake.
I wish it wasn't true, but Apple is the one responsible for their dismal market-share. Also, to some extent, you and me, since our willingness to overpay has given them an inflated ego.
Funny, the infatuation with how "cool" they are in media, commercials, etc., is really just a cover-up for how uncool they are in real life. Steve Jobs is petty, demanding, insulting, self-aggrandizing, greedy, etc. Three cheers for the OS (Next) and all that, but he is still a liability for the company as a whole. Like the Tim Man, if he would just grow a heart, he would be great. But like the Lion, he is too afraid. So we get stuck with the scarecrow. He flaps his arms, but the world ignores him. Other companies are jealous of his success, you have that right, but the companies he needs most (VAR's) he won't do business with, and they have all abandoned him. Deservedly so.
We all reap what we sow. Not even Apple can reprogram that.
Given how everyone is dressed, I suspect Steve Jobs might have had a little to do with it. LOL.
If imitation is the sincerest form of flattery, then his clones must be necessary so he can flatter himself.
;-)
Is that true about Microsoft?
Oh I like the stores okay, but like many restaurants that I have loved, I can sense that they won't be open forever. The Stores will last a while though, and will undoubtedly go through many more changes, too. Apple has been running in the black, and they have a healthy cash reserve, too, which most small businesses don't have. But the big guys do fall. COMP USA seemed pretty secure, too, so did Circuit City. It's expensive to own inventory, and now when they drain the channel, they are also draining their own sores for a refresh.
I agree something like the stores was needed, however, they "work" for a shifting demographic. They don't NEED them for long-time loyal users, only for newbies.
Think of it this way: I have bought 10+ Macs over the last 20 years, but a PC iPod user spends $150 and may never buy again. The Stores cater to the iPod customer, but are just over-lap/redundancy for the big customers, at very high rent. No matter how many Apple Stores they build, there will still be a 100:1 ratio for places to get a PC. The problem wasn't the demand for computers, or the places to buy them, but the underlying reason why people preferred a PC. It had a lot to do with support, which is why Apple has the genius bar, but the genius bar has very limited support, it doesn't really solve the issue.
My point is that Apple needs the small business market that the resellers cater to. The Stores will never fill that niche, especially with premium priced products, like on displays. The Apple Store is a crappy store compared to what other computer stores offer. They have no selection, which puts them back where they started.
There has always been this funny assumption that Apple should and wants to take over the world, but they have never been willing to embrace an obvious strategy that would work: give people what they ask for, treat people fairly, value the services of resellers. They are still zero for three on that score. Other computer manufacturers will continue to fill that vacuum as long as Apple leaves it open. The stores don't close this gap, they widen it more. The stores win the battle and lose the war, both financially and politically.
Only an idiot could have a superior product and fail to be able to sell it. Steve Jobs is that idiot. The stores were necessary because of his continuing marketing failures; they are not a sign of his prowess.
Apple's great store support is dependent on the fact that you only ask questions about the 5% of the things that you can use a computer for. It is the equivalent of the snack bar at a movie theater. If you want real food, then you need to dine elsewhere.
Apple has driven all its resellers out of business, and this latest "innovation" is a last gasp for marketshare.
It is a great irony that Jobs lured Sculley away from Pepsi by saying "what do you want to do, change the world or sell kids sugar water for the rest of your life." It is Apple that now sells the "sugar water." iPods, iPhones, computers to watch uTube, movies, videos, TV and music. The teenagers that have now become Apple's base demographic are not going to change the world, are not "the crazy ones," and the cereal companies have been pushing sugar on them for generations.
Oh, and they are fickle, too. The Walkman's ride didn't last forever
The stores are going to come crashing down with a great thud someday. Not because you can't get great customer service on your narrow 5%, but because the long-term trends in retail are that nobody survives. There has never been a totally vertical company in retail. Apple may be the first (though they are not a true vertical company, since they now outsource everything they manufacture.)
Unique? Yes.
Competent? Yes.
Better than regular resellers? Debatable.
Profitable? Yes, for a while.
Look at the overhead: employees, rent, inventory are all extremely high. It works fine when sales are strong, but when sales are weak it sinks you quickly, which is why the retail landscape is littered with blow-outs. Apple has nobody to merge with, nobody they can buy, and there is no player to buy them out, either.
Enjoy the stores while you can, but something has to change eventually. The good times don't last forever, and over-expansion comes back to hurt every company.
Apple's best strategy for growth right now is to lower their prices, but because they have created all this overhead obligation they will be reluctant to do so. When they finally cut prices it will be too late.
Fortunately, there are many channels outside of the Apple Stores, so when the stores retract, Apple itself will still be fine. The American stores were the first to open, and will probably be the last ones to close.
Manufacturers belong at the top of the pyramid. Apple continually makes their world more difficult than it needs to be.
You mean OS 9 isn't the last real Mac ever?
:-)
I miss the old days of plentiful and cheap software and everything was new. OS 9? Not so much. I booted my old tower in it a few months back, (it runs X usually) poked around a few minutes, clicked on the wrong thing, and it crashed. Like a Pavlovian bell, I remembered everything that came with 9. (Was Windows really any worse or archaic in the infinite ad nauseam details we must remember to get things to work?) What exactly was being "evangelized," fewer flat tires than the other guy!
Remember how much more time we had when we were less productive in OS 9? The rat-race wins by making us wait or by making us hurry. The best definition of a computer I ever heard is that is is a "mistake amplifier." It's not the tool, it's the hand that uses it that matters.
Apple wouldn't get cut up because of its monopolistic power, it would cut off its limbs so the torso could survive. It would be more like Ford selling its LandRover division. It purchased the LandRover Company so it could grow, but it ended up taking a loss. The Apple Stores will have the same effect. Like every other retailer, they will eventually hit hard times.
My apologies for not being more clear. Microsoft was going to be broken because of its monopolistic success, whereas Apple being broken up would be because of its monopolistic failure.
By any normal standard, Apple is an astounding success. But because Microsoft casts such a large shadow, everyone else pales by comparison. Your being a Microsoft infidel is an expression of that belief, but you are by no means alone in that belief.
Time will tell, but history has shown that most businesses eventually fail. It really isn't hard to suggest Apple's eventual misfortunes, since bust and boom are intimately related. In other words, it would be best if Apple simply tried to survive, rather than being dominate. The risks that one takes to become dominate are eventually the risks that one loses.
Apple, at one time, was a manufacturer and a designer. Now they are just a designer and a reseller. The reselling can carry the computer and designing for a while, but they are still isolating themselves and making themselves weaker and more vulnerable in the process. They can lose all these new revenue streams overnight, and still be stuck with the high overhead. Bear Stearns, WorldCom, etc., all thought the good times would last forever, too. Apple is small only compared to Microsoft, but they are in and of themselves a huge company, and Steve Jobs is an extremely wealthy individual.
Your worship of both is very akin to the adoration of royalty a few centuries ago. You love your king and hate the other country's king. Crank it down a little. Steve and Bill are a mirror image of one another, not opposites. Nor are they very different from ourselves, just more extreme versions of who we are.
Robomac, you may be an infidel in the church of Microsoft, but you are a true believer in the church of Apple. :-)
A toaster does not have to make burnt toast, but pretty much the only thing it can do is make toast. It's a tool, not a religion.
As far as the oligopoly goes, Apple wants to be a part of many oligopolies simultaneously. Does that make them more virtuous or less virtuous than other oligopolists? It doesn't take much to stir up a hornets nest within an oligarchy; they are already paranoid of one another.
And again, you seem to give too much credit to Apple for their strategic positioning. Without the carrier, they have no iPhone. Without the record monopoly, they have no iTunes store. Without TV and movies, they have no Apple TV. They are a bit player, and a weak player in these industries. Their real strength is in computers, and they still have not figured out how to sell them. They are constantly making claims about how it is improving (tiger to leopard, Power PC to Intel) but that is all insider talk. Even the commercials mocking the PC, while funny, do nothing but mock the person they are trying to sell to. You, like them, are thinking about Microsoft, rather than thinking about real people. You have objectified yourself and others.
Apple presents itself as confusing, elitist and overpriced, because Steve Jobs is confused, elitist and greedy. He is not unique by any means, most of America fits that description, but to understand Apple, you need to understand that. The Microsoft true believers are very much the same, and they have far more invested in their learning curve, too.
For example, I design in Illustrator, it would be practically impossible for me to switch to Corel, no matter how good Corel is. People generally don't change their religion. Just because they bought an iPod, that runs on Windows, it doesn't follow that they will be buying a Mac anytime soon. Apple has accommodated the Windows user, the Windows user will buy their hardware (maybe even a Mac to run Windows,) but you need to recognize that your Pope (Steve Jobs) is just chasing the money. He could care less about you or your evangelization. They dropped the word "computer" because computers are not that important anymore. They need to chase the money, wherever they can find it.
In other words, Steve Jobs blew it. Maybe things would have been different if Woz never left. And he will blow it again, based on the dominos he is constructing. It is hard to survive in one oligopoly, it is impossible to survive in many of them. While in the short term success in one area will give strength to the weaker areas, at some point he will have multiple weak spots. At this point, it seems more likely that Apple will be broken up, not Microsoft. But there is still time for Apple to come to its senses. It has a lot of strengths, it just needs to use them more wisely. Unfortunately, pride and paranoia tends to be the downfall of every titan, and Apple has shown plenty of signs of both.
Apple has long had sustainable inertia, but they keep shooting themselves in the foot.
Stupid is doing the same thing repeatedly and expecting different results.
The iPhone and MacBook Air are hardly Trojans, they are elitist toys made for the elitist base.
Apple lost to Microsoft because they overcharge their customers and undervalue their vendors and developers. The proof is all around us, because you have to work really hard to have a great product and lose anyway.
All they had to do was lower their price and sell more products, instead they kept the price high and sold less. They still do it, and they still cater to elitist tastes. They are not populists at all. They put all their dealers out of business, and the high-end stores are going to crash with a huge thud eventually. It is easy to compete with a company that charges too much.
Apple will inevitably spawn more and more competition; its high overhead will make them weak, and its high margins will make them attractive to compete with. It's a lose-lose for Apple. Fortunately for Apple, most public companies are also run incompetently, too.
The real story of Apple is that the product is so good that its users won't let them fail, no matter how badly they manage the company, and how much they are abused. And, Steve is too big a dink to even know that. I would make a good successor though. lol I have a good handle on their strengths and weaknesses, but as you can imagine, the stockholders would hate me. Their profits would be my last priority.
fyi: you have created a straw-man in your head; Microsoft. You have "politicized" your toaster. There was a time when I made a similar mistake. The people who buy PC are simply interested in the toast, not the toaster. Only a power-user knows the difference, and as the web takes over, this becomes less and less relevant, which is why Apple is chasing the smartphone and music player market. It didn't "innovate" anything. Apple is playing copy-cat in an attempt to survive.
Steve and Bill were both doing the same thing at the same time. If Bill grew up to be "the Borg" then the question is "what did Steve do wrong?" While I don't care for Windows, I actually did enjoy DOS. lol
Neither of them invented the GUI.
The computer, almost by definition, is a collaborative tool. At a minimum it needs information to be useful, but its primary function is to transform data into knowledge, and to enable deeper and richer methods of communication. Steve never really "got it" that he needs to work with other people fairly. Microsoft's success is wholly due to the fact that Steve is a dink. Steve is still far too concerned with what the computers look like, rather than how they work. Apple continues to be arrogant and dismissive of other players in the industry. Plus, the Apple mindset is not so different than the Microsoft mindset. A borg is a borg is a borg. This is an oligarchy of two.
Steve Jobs may think he is a populist. You may think you are a populist with him, but you have already stated that politics is laundry-load of crap. How does this logic work? Can't you see your own crap? Steve wants money and power. You invest with him because you want money and power. You are an infidel because you want Microsoft's money and power, not because you oppose the concentration of money and power. This is a subtle but huge difference.
So what happens when Apple reaches critical mass? It becomes the new borg, same as the old borg. Napoleon was a populist too, and then he crowned himself emperor for life. :-)
Vindication? Apple shot itself in the foot so many times that is why it can only trot around in circles. And really, this has nothing to do with computers. Apple makes music players, TV's and telephones and resells other people's content. Consciously or not, Apple has already admitted defeat when it comes to computers and software. While the product is better, they have no idea how to sell it.
I wasn't talking politics, I was describing how you use your surplus cash to prey on others anonymously. (Yet, you think you are "helping" Apple by owning stocks.) Yes, it is an institutionalized and ubiquitous system, but that still doesn't make it right or logical. Americans still keep slaves, but they are more subtle about it; so subtle that they are unaware they are even doing it, or are themselves enslaved by this system.
Anyway, I agree with much of what you said about the Mac. My next purchase will be a Mac Pro because of the ability to upgrade, the technological longevity of better components, etc. Right now I am running a dual 867 G4, and I have started doing animations, etc., and it really doesn't have the beef to get it done, but the machine has more than enough power for what the family does. As such, it is not the machine that is "obsolete" but rather my increasing demands for the workstation. It will make a great hand-me-down.
I still don't see why you call yourself an infidel, though. You argue in favor of complacency. :-)
Keep in mind that Jobs sincerely believes that Apple is about changing the world and making it a better place. I agree wholeheartedly with the goal, but I do not think they have the strategy to make it possible.
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