BBC Prints Irresponsible Rubbish on Apple
Daniel Eran DilgerThe BBC has joined the London tabloid press in printing a series of articles skewering Apple over invented suppositions based entirely upon misinformed speculation and some outright lies. The worst part is that the BBC is being grossly hypocritical in its misinformation campaign against Apple, because the company is up to its eyeballs in the Microsoft-encrusted scandal surrounding its proprietary, Windows-only iPlayer imbroglio.[UK Tabloids Pick Up Zoon Awards for Technical...
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BBC's Bill Thompson Hates Being Fingered As a Fraud
Daniel Eran DilgerIn response to the article "BBC Prints Irresponsible Rubbish on Apple," Bill Thompson wrote me explaining that he didn't like being called out on his errors. However, he failed to explain how he was accurate in his rambling diatribe assailing Apple as equal to Microsoft in anticompetitive, market monopolizing behavior.Instead, Thompson referred to me--in the plural--as "excitable Apple Zealots," as he republished my article in his blog with more of his own comments. “I don't want to sign up to your forum, however nice your art projects may be,? he wrote me in an email. “I'll be posting this on my blog shortly, but you may like to post it too.?According to readers, Thompson commonly doesn't post the comments they leave on his blog. At his main pulpit, there's not even a pretense of allowing readers feedback. As reader Thomas Olson noted, "What irks even more about the swill he [Bill Thompson] publishes on the BBC website, is that there is no place for public feedback, so us common folk can call BS on his rant in real time for the world to witness. BBC is still a delusional, vertical content gatekeeper, who believes they're somehow 'in tune' because they happen to have a website."Thompson is Still Wrong.I wrote Thompson back, noting that "while I don't agree in key areas, I do admire and respect your willingness to debate, and I don't intend my criticism to to come across as a personal attack."I'm not advocating an "easy ride" for other companies, including Apple. What I stated was that Thompson provided no proof for his wild assertion that Apple was as bad as Microsoft. I indicated the history of Microsoft's troubles with the EU dated back into the 90s, and even earlier in the US. Microsoft has been found guilty repeatedly, internationally; Apple has not. That should factor into Thompson's "just as bad" rhetoric.It's great that Thompson doesn't share the BBC's position on iPlayer, but my article was as much castigating the BBC as it was his article specifically. Thompson didn't even make the headline. So when I talk about the problems of the BBC, he can't take it personally. However, using the BBC as his mouthpiece, and the BBC using him as a way to deliver the message that Microsoft's problems are really common and nothing out of the ordinary and that Apple is doing deceptive, anticompetitive things... are both still examples of hypocrisy. It's a bit like hearing from FOX News that other countries terrorize their citizens and propagandize fascism.The iPod Changes That Break the Third Party Apps.Apple doesn't publish a third party API for the iPod's file system details, nor does it describe the iPod as an open platform. Windows does, yet Microsoft breaks third parties' software to establish its own dominance in new markets. This happened with Office apps, web browsers, media players, developer tools, etc. This is not the same thing as Apple being popular with the iPod. Pretending there is an open market and yet running it as a monopoly is not the same thing as selling a unique, closed product that may be popular.If BMW refined their vehicles in a way that required aftermarket car stereo companies to adapt their products to fit its new cars, you'd have a situation similar to Apple's iPod change for Linux. However, if one company owned the entire market for all vehicles on the road, and decided to destroy the market for car stereos and take that over itself, you'd have Microsoft. There is no similarity here.This Depends On How You See Lock-In.Thompson wrote, "This depends on how you see lock-in: if I can't play music I buy from iTMS, something I'm encouraged to do at many points in my use of iTunes, on any other player, or use any other jukebox than ITunes with my iPod, then once I've made my initial choice to have an iPod I am in an Apple ecoystem that I can only extract myself from with some effort. It's not absolute - IBM mainframe users also had a choice back in the 70's. It just wasn't a realistic chouce. [sic]"Wrong again. You can play purchased music by burning a CD, or directly using iTunes Plus non-DRM music. The problem with DRM is a issue of the music labels, not an iTunes lock in issue. Thompson is again repeating a myth. Jobs railed against DRM, then fought for weak restrictions to appease labels, and is now pushing labels to make music downloads as easy to use as CDs with DRM-free downloads.Thompson doesn't understand what's involved, and ended up making false comparisons. What other source for open music is there? WMA is locked down Windows-only tight (like the BBC's iPlayer), MP3 music is only available from indie labels. You can't get open music downloads from any of the big labels representing popular music apart from EMI's iTunes Plus. By repeating false information, Thompson only serves to cloud reality and turn back the clock.[Top Myths of 2006 - Myth 4: The iTunes Monopoly Myth]I Am Not A Crook!Thompson wrote, "I don't like being accused of being a liar, and that sort of comment undermines any other points you may be trying to make." Well then, he shouldn't represent himself as an expert, while publishing web rumors he doesn't really understand. It's not my fault he is misrepresenting the truth. That's what a lie is. If the truth "undermines points I make," doesn't he understand that lying undermines points he may be trying to make?In weeping over being called on his false comment, Thompson neglected to answer the fact that purchased tracks from iTunes can be effortlessly burned to CD for use on other players, following the most liberal and open fair use rights in the industry. Incidentally, feigning outrage is no way to answer criticism unless your position is indefensibly wrong.What about the supposed iPod accessory lock-in? Apple's dock connector isn't an ISO standard, but there isn't an ISO standard for a connector that pairs USB, Firewire, audio and video on the same cable. At the same time, the dock connector cable is standardized and documented, it does not change with every model, and there is no DRM on it that prevents anyone from building compatible cables. So he's wrong, there's no lock in involved.The Ringtones Monopoly.Thompson suggested I was being hypocritical for noting that "Apple sells ringtones and doesn't support homebrew attempts to copy ringtones to the iPhone. Yes, this is unfortunate. Users shouldn't face limitations from using their own song clips, and they shouldn't have to pay extra to carve out a ringtone from songs they purchased or already own. However, this isn't entirely Apple's decision because it has to answer to the labels. It's also not illegal, and it has nothing to do with anticompetitive monopoly dominance of the music industry."A contradiction? I agree that ringtones are an unnecessarily complex legal issue, and that customers are being held up by the labels' overbearing demands. But Thompson calling Apple's move anticompetitive or an establishment of a monopoly is uninformed sensationalism. Apple's ringtone prices are a fraction of any other providers, and while Apple did cave to their demands over preventing users from easily copying over their own, it did so to win a more significant battle to open up music, not to limit the market or establish more control.Thompson misrepresented ringtones as being something similar to Internet Explorer or Windows Media Player, as if Apple is muscling into a new market to dominate it using an existing monopoly. The assertion is silly and uninformed. Apple doesn't make significant profits on its music sales, including ringtones. Further, Apple isn't in the ringtone making business, and has no obligation to facilitate this for users, just as it has no good reason to lose a fight with movie studios over the overbearing laws that prevent legal ripping of DVDs.[Apple's iTunes Ringtones and the Complex World of Copyright Law]Bundling, Price Fixing, and Monopoly Tying.Thompson can criticize Apple's business model, but calling it a way to expand market dominance is an error of simpleton logic. It's really the opposite: an opportunity for rivals to compete against the iPhone by offering a nicer way to play "My Humps" when their phones ring. So far, the US ringtone industry revolves around $2.50 - $3.00 clips that expire after several months.Thompson suggested I forward this defense to Microsoft for its Windows Media Player bundling. How does he not understand this? Apple competes against other mobile makers and other mobile providers in an open market. Microsoft does not compete in an open market. It holds a monopoly in PC operating systems acquired illegally using anticompetitive and anti-consumer tactics. It is now using its monopolies to expand into new markets. Apple is not. Apple has not created a monopoly in MP3 players any more than Symbian has a monopoly in mobile phone software. There is a functioning market for both; so if Apple does something consumers don't like--such as charging 99 cents for a ringtone, competitors can go elsewhere... but they'll have to pay $3 for one that expires after a year from Verizon, or roll their own solution. Or set their iPhone to vibrate.Windows Media Player does not compete in an open market; it's tied to a monopoly product that exercises complete control over the PC desktop. There are no options for most users. Linux isn't a viable option for the majority of desktop users because of the Office monopoly and file incompatibilities, and the exclusive OEM contracts with PC makers Microsoft uses to support its Windows monopoly.Ringtones are a consumer feature, not a significant, competitive industrial market being threatened with monopolistic takeover, as is the case with media playback and servers, or web browsing and servers, or office productivity application software. Fantasies of Cheap Cables and iTunes on Linux.Thompson wrote, "just as I can go into Game and buy a cheaper third party Xbox cable or controller that has not been authorised by Microsoft so I expect to be able to buy less expensive iPod accessories and if I can't then I see an indication of an attitude towards the market that worries me."But that's wrong; you can buy iPod accessories at any price from a variety of vendors, even no name ones. Compare the price of Xbox cables to what Apple itself sells, then go find even cheaper stuff. There's no monopoly position in iPod accessories because there is no real barrier for competition, as there very much is on the Windows PC desktop. Again, cable manufacturing isn't similar to the media broadcasting industry or the office software market.He suggests freeware alternatives to iTunes might solve world peace or help one achieve Nirvana, but that's irrelevant. Apple doesn't owe anyone a free ride because there is not a free market around "iPod player jukebox software," just as there is no free market surrounding "engines in BMWs" or other component parts of products. I can't go buy a new BMW with whatever third party engine I want, even if I think I want one that does things that BMW's wouldn't offer.In contrast, Microsoft claimed all along that Windows was an open platform, and PCs were sold as an open market for software. That's very different. If Microsoft faced real competition on the desktop, it could bundle anything it wanted to. But it does not, so it can’t.You can't say, 'if Microsoft can't bundle WMP, that must mean Apple can't offer iTunes either;" it's a false comparison because Apple didn't kill off competitors with twenty years of backstabbing and anticompetitive practices, and does not operate a monopoly. You can buy alternatives to the iPod from Creative, Sony, Microsoft, HP, SanDisk and lots of others. You can not effectively buy commercial alternatives to Windows due a variety of barriers in the market.Thompson Advocates Real Network's DRM.Defending his comment that "when it comes to music downloads it [Apple] is just as bad as Microsoft on servers," Thompson wrote, "the behaviour towards Real was appalling and remains indefensible. They [Apple] broke Harmony [Real's Helix DRM] because they could and because they wanted to lock competitors out - what other spin can you put on it?"There is no open market for selling iPod DRM content. Apple said some silly things in the Real squabble ("tactics of a hacker" was particularly stupid) but Real had no right to sell DRM music for the iPod. Apple only forced them to sell open content, and anyone can still sell open content that plays on the iPod, as eMusic does. Defending Real's DRM is just another example of Thompson not getting it.Paul Thurrott is similarly upset that Apple can't be forced to license Windows Media DRM, allowing Microsoft a free ride on the iPod in its efforts to spread its own viciously anti-consumer media software platform. Apple doesn't have to serve the whims of two companies that failed in the marketplace because they tried to exploit consumers and found that their user base ran off to greener pastures.The EU Courts and IP.The EU certainly should fix the problems of the music business in its countries, and demand fair use provisions from music and media providers as I noted. However, trying to spin the complex situation off as proof that Apple is anything like Microsoft is not only disingenuous, it's an outright lie. Using a bunch of half-baked, ignorant web rumors to support a position that Apple should just allow anything and everything is also dishonest.Thompson maintains that's not what he said, writing, "I want Apple to play fair (get the joke?), to be open about interfaces and file structures and to compete in an open market for music players and jukeboxes, because I actually think we will all benefit and even Apple will end up making better, sharper products and making more money."It's fine to criticize Apple over an open source ideology, but Thompson needs to accurately represent himself as a Cory Doctorow waving a communism flag; don't pretend to be defending free markets and attacking monopolization while at the same time insisting that Apple hand away all of its intellectual property to competitors and write anti-iTunes software for the community. Thompson pretends to celebrate the success of an innovative company whilst inciting a communist revolution against it, using the jingoism of busting the trust of monopoly powers that don’t exist. What do you think? I really like to hear from readers. Comment in the Forum or email me with your ideas. Like reading RoughlyDrafted? Share articles with your friends, link from your blog, and subscribe to my podcast! Submit to Reddit or Slashdot, or consider making a small donation supporting this site. Thanks!
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Will Google's Android Play DOS to Apple's iPhone?
Daniel Eran Dilger Today's broad array of smartphone operating system contenders are offering lots of potential answers to a problem that only requires one. It appears the market has two options ahead: either pool generic hardware makers behind a single operating system and deliver a smartphone marketplace that resembles the Windows PC market, or watch them fall to a dominant leader and have a smartphone market that resembles Apple's iPod ecosystem. This decision isn't going to be made by a class of intellectual elite, or by government mandate. it's going to be made by the market itself. Here are the factors that will influence the outcome, either marginalizing Apple's iPhone into a niche as the company has twice experienced previously at the hands of DOS in 1981 and Windows in 1991, or positioning it as the dominant leader as Apple has achieved for itself with the iPod since 2001. The third segment in this series looks at Google's Android and the Open Handset Alliance as a possible “DOS-attack” against Apple's iPhone. Subsequent segments will look at Nokia's newly opened Symbian and other mobile contenders challenging the iPhone. Will the iPhone Meet its Match from a Modern Day DOS? Will Windows Mobile Play DOS to Apple’s iPhone? Will Google's Android Play DOS to Apple's iPhone? Will Symbian Play DOS to Apple's iPhone? Google Acquires Android. In 2005, Google purchased a startup named Android, which had been in business for nearly two years. The secretive startup was known only to be working on software for mobile phones. It was being run by a who's who of mobile industry veterans, including Andy Rubin, the founder of Danger. Rubin had earlier worked at WebTV along with Chris White and Andy McFadden, both of whom had also joined Android. Richard Miner of Orange and Nick Sears of Tmobile also brought their mobile provider experience to Android. At the time of the acquisition, Google didn't announce any plans for Android and instead only told BusinessWeek, “We acquired Android because of the talented engineers and great technology. We're thrilled to have them here.” It appeared that Google was only going to be expanding its search services for mobile phone users, along the lines of the Google SMS answer system it had recently released. Google Buys Android for Its Mobile Arsenal - BusinessWeek Windows XP Media Center Edition vs Apple TV: The Fall of WebTV The GPhone Myth. As reports began to leak out about talks between Google and hardware makers throughout 2007, rumors began to fly about “the GPhone,” a competitive offering that was supposed to take on the iPhone. Some phone enthusiasts hoped Google would jump in to rescue the struggling OpenMoko project and turn it into a viable project that could attack Apple's new smartphone. In October 2007, I printed the Great Google GPhone Myth, taking apart the idea that Google would be directly competing against the iPhone, and describing that Google was really working on a free alternative to Windows Mobile as a conduit for getting its search and related services on a broader variety of mobiles. Google's services were already on the iPhone. In November, Google played its hand: it had organized a consortium of companies called the Open Handset Alliance to develop open standards for mobiles. The first product from the group would be Android, a mobile operating system built on the Linux kernel. Google wasn't getting into the phone handset business at all; it was only making sure that its mobile search products would not risk being marginalized by the threat of Windows Mobile on phones in the same way Microsoft had been working to leverage its PC monopoly to push Google search off the Windows desktop. The Great Google gPhone Myth Introducing Android: Leader of Linux. Two weeks later, Google released an early version of the Android software. On top of a Linux kernel, Android uses a specialized version of a Java Virtual Machine that takes Java language code and turns it into what Google calls “Dalvik bytecode” rather than Java bytecode as a standard JVM would. This allows Google to leverage existing and familiar Java language tools without paying Sun for a Java license. Like Mac OS X and its fraternal iPhone OS, Android includes a variety of open source libraries, including SQLite and WebKit. On top of that, Google developed a series of frameworks that handle the tasks Cocoa Touch does on the iPhone. Android also bundles a set of applications. While Apple adapted its existing Mac OS X to work in a mobile environment to create the iPhone OS, Android is more like a customized Java environment running on a specialized mobile Linux variant: elements of maturity in an otherwise experimental new platform. What is Android? -Google Android was by no means the first mobile OS using Linux. Both Palm and its amputated ACCESS software arm have Linux-based mobile platforms. Nokia has Maemo, which it uses in its Internet Tablets, and also recently acquired Trolltech and its Qtopia mobile Linux platform. Motorola has teamed up with MontaVista Software to use its Mobilinux. Intel created the Moblin project for mobile Linux, aimed at Internet devices. Google's OHA also isn't the first consortium to attempt to standardize a mobile Linux platform. The OSDL started the Mobile Linux Initiative to define requirements for hardware; the Consumer Electronics Linux Forum (CELF) then worked to define various phone profiles aimed at the Japanese market; the Linux Phone Standard (LiPS) Forum tried to do the same thing in Europe. In 2007, LiPS was folded into the new LiMo Foundation, along with the OSDL. All of these committees have had some overlap and some complementary features. Several of Google's OHA partners are also LiMo members, including NTT DoCoMo, Wind River, and Motorola. So why didn't Google just join LiMo? “LiMo, very candidly, wasn't moving fast enough,” OHA board member John Bruggeman told CNET. Google hopes to herd the Linux cats into a progressive, structured platform that can battle against Symbian and Windows Mobile to succeed as the new DOS of smartphones. Will Google fracture or unify mobile Linux? The Presumption of the Necessity of DOS. The previous segment examining Windows Mobile pointed out how the PC industry as a whole assumed that Microsoft's desktop Windows monopoly would easily take over dominance in the MP3 player market, pushing Apple into a niche position. This was expected because DOS had pushed Apple's early computers into a reduced role starting in 1981, and Microsoft had repeated this again in 1991 when the DOS world migrated to Windows, effectively pruning Apple's Macintosh into a Bonsai platform. The inability of one company to dominate any product category has been frequently repeated by PC industry pundits as a given, despite the fact that history is full of examples of this happening. Sony dominated personal music players for two decades under the Walkman brand even while equally large competitors tried to push it from this position; Nintendo has similarly owned handheld gaming despite ill-fated efforts to grab a piece of its pie by products running a generic platform such as Microsoft's WinCE (Gizmondo), Linux (GP32), and Symbian (N-Gage). In fact, outside of the Windows/DOS PC, there are actually few examples of a generic platform taking over an industry. Nearly every other consumer-facing product uses proprietary platforms: car makers, stereo equipment, appliances and so on typically all use designs custom to their maker. The paradox of the Windows PC market has been that Microsoft's broadly licensed software supposedly saves hardware makers from investing in software development while ensuring compatibility, when in reality it adds significant costs to PC makers while limiting their ability to differentiate themselves. That explains why PC makers have been perpetually merging together and going out of business while Microosft has rolled in money over the last two decades. Parallel efforts to copy Microsoft in broadly licensing an operating system have regularly failed: IBM's OS/2, Apple's Mac OS, Palm's PDA OS, even Microsoft's own efforts to duplicate Windows dominance in other markets, from copy machines to PDAs to smartphones to SPOT watches to music players. The closest copy may be Symbian, but its customers are partners, not simply consumers of a generic third party's operating system as Windows licensees are. That indicates it is not necessary to duplicate the dominance exercised by Microsoft over the PC industry in the smartphone market. Google's Android and Symbian exist more as technology sharing pacts among manufacturers, but both aspire to take Microsoft's DOS role among smartphones. However, the idea that Apple's iPhone must be dethroned by a modern-day DOS, whether Windows Mobile, Android, or Symbian, is not just debatable, but does not sync with the reality of more recent events. Apple's recent history of the iPod further refutes the idea that a software analog to Microsoft is needed. The iPod Emergence: Apple & Pixo vs IBM & Microsoft. Apple's iPod in 2001 made no effort to clone the DOS business model; it actually did the opposite. When Apple entered the market, there were a number of existing MP3 devices using custom software, hardware designs, and DRM codecs. The iPod used off the shelf components to deliver a custom MP3 player using third party software, but Apple also added its own technologies: easy to use sync with iTunes, a fast Firewire interface that made uploading music far faster than the prevailing USB 1.0, and an attractive industrial design. With the iPod, Apple played the role of IBM in 1981, using Pixo's embedded operating system to enter the market quickly, just as IBM had used DOS. The difference was that Apple didn't direct any market attention toward Pixo and added a lot of value on top of that core embedded OS. A modern day Compaq couldn't simply clone the hardware and license Pixo to run on it in order to compete against the iPod, because the iPod was much more than just generic hardware running Pixo software. As the iPod developed, Pixo's role diminished and was eventually displaced. Just like IBM, Apple jumped into a new market just as demand was beginning to explode. Apple made MP3 players far more attractive to a general audience by delivering greater playback capacity than most entry level devices offered, along with an ease of use that encouraged buyers to jump in at the higher end of the market. That left Apple with not only the lion's share of the market, but also by far the most profitable segments of the market. Two decades prior, IBM badly fumbled its play with the early PC and ended up irrelevant in the PC world by the late 80s, sideswiped by Microsoft's DOS and the cloners who were licensing it in parallel, notably Compaq and later HP and Dell. Steve Jobs had witnessed that happen, and was determined to not let it happen again to Apple. Rather than being manipulated by a software middleware vendor as IBM had, Apple worked to incrementally develop the iPod market itself. After consuming the hard drive-based player market, Apple took on the Flash RAM-based market with a tiny hard drive system used in the iPod Mini, and followed up with Flash-based devices of its own in the Nano and Shuffle. This allowed Apple to progressively serve an increasingly wider market, incrementally growing upon an established foundation. With the iPod, Apple became, in effect, an IBM with its own internal Microsoft. Microsoft's Failure Despite Features. In contrast, Microsoft entered the music player market by promoting music player hardware reference designs around WinCE. However, it was unable to ship a finished design until the iPod had become firmly established around 2005. Later branded as PlaysForSure, the devices were sold by various hardware makers and all purported to support the same DRM and the same music subscription services while also offering a broader array of hardware that presented video before the iPod did, supported wireless before the iPod, and so on. Despite these unique features, all of those PFS designs still failed. Microsoft blamed the failure of PFS upon its music store and hardware partners and decided to take Apple on itself in 2006. It relaunched a Toshiba PFS player as its own device under the Zune brand, adding WiFi music sharing features and a larger display than the current Pods had. It failed dramatically as well. Did Microsoft's attempts to float a new DOS among music players fail because of Apple's success, or due to Microsoft's own problems? The failure of the Zune, which followed the iPod model rather than the DOS model, seems to suggest that Microsoft itself was to blame. Consider too that Microsoft's Windows Mobile phones, which use the same underlying operating system as its failed PlaysForSure music players and the Zune, had similarly flopped even before Apple could release a charismatic phone equivalent to the iPod. Of course, when the iPhone was released, it hit Windows Mobile hardest. The iPhone made Windows Mobile Smartphones look ridiculous and underpowered, and made Windows Mobile Pocket PC phones look clumsy and awkward, despite the fact that they both supported a variety of features the iPhone didn't, including the ability to edit documents, capture video, send MMS, and so on. Simply adding on features did not enable Microsoft to compete against Apple. The only conclusion that can be drawn from all this is that competing against Apple requires more than just having a feature arsenal. Microsoft's failures in themselves do not necessarily mean that Google's Android will fail in its attempts to float its own smartphone platform. Why Microsoft’s Zune is Still Failing Microsoft’s Zune, Vista, and Windows Mobile 7 Strategy vs the iPhone Will Google Succeed where Microsoft Failed? Microsoft's demonstrated inability to successfully enter consumer markets for MP3 players and smartphones has given observers little faith that the company will somehow turn things around in late 2009 when its next generation of devices are expected to be released. However, prior to that the first fruits of Google's efforts to build its own smartphone operating environment will arrive. Will Google's Android take over Microsoft's crown as the “DOS vendor” among smartphones? Supporters of Google's Android project point to some parallels between Android for smartphones and Windows on the PC: Android will allow hardware makers to differentiate in ways that can offer features Apple can't (or doesn't want to); it should allow software developers to offer features Apple does not allow on the iPhone; it embraces open, hobbyist experimentation in ways that Apple currently isn't; and it opens the potential for content providers that Apple is not interested in allowing. Openness is Android's key competitive feature. Will all this openness allow Google to unseat the iPhone to become the primary platform developers want to participate in, and subsequently soak up the market for third party hardware makers that Windows Mobile serves? While Google currently has no market share due to the fact that no Android phones have yet shipped, it does have broad vocal support from a variety of the same kinds of hardware manufacturers that supported DOS and Windows and helped to make those platforms successful in the desktop PC market. HTC and Android. The first Android phone is expected to be the HTC Dream; Taiwan's HTC (High Tech Computer) also manufactures Palm's Treo Pro phone as well as many of the most visible Windows Mobile devices. In addition to models produced under its own name, HTC also sells Windows Mobile devices under the Dopod brand, as well as no-name phones branded by providers, such as AT&T, Orange, Sprint, T-Mobile, Verizon Wireless, Vodafone, and others. HTC will also be building the XPERIA X1 Windows Mobile phone for Sony Ericsson. HTC was quick to throw its support behind Android despite its long term alliance with Windows Mobile. Why would it so enthusiastically support an unproven platform from a company that has no experience in consumer hardware platforms? One can only assume that HTC is not happy with the current state of Windows Mobile, and desperately wants another “DOS” to succeed where Microsoft's has so spectacularly failed. As an Original Design Manufacturer for Palm, HTC watched as Palm adopted Windows Mobile in place of the Palm OS and subsequently fell even deeper into crisis. Palm's only successful phone since has been its Palm OS-based Centro. HTC undoubtedly sees Android as its ticket to becoming the next Dell, but without a similar dependance upon Microsoft. Android for mobile phones is essentially playing the role of Linux for PCs, except that it has the backing of a major company behind it. Can Android Take on the iPhone with Openness as its Feature? As great as this sounds, it's important to consider that Linux on the desktop has made no significant progress in eating into Windows dominance after a decade of trying. Being open, free, flexible, and decentralized hasn't been enough of an advantage to get consumers to migrate from Windows to Linux in any fraction of significance. Similarly, in the music business, Linux-based MP3 players have had no impact on the iPod, despite offering more features, flexibility, support for additional codecs, and so on. In the mobile phone area, Linux enjoys a sizable portion of the smartphone market, but this is almost entirely due to phones sold by Motorola in China, where the advantages of Linux' openness are void. Motorola's Linux phones offer nothing to users in terms of openness or flexibility, and are really no different in terms of features than other appliance 'feature phones' based upon closed operating systems. And again, a key problem with assaulting Apple in a feature war is that neither the iPod nor the iPhone became popular by being “highly featured.” They both delivered perhaps 80% of the functionality found in all other devices in the market. Rather than trying to match every feature and cater to every niche as Microsoft had with Windows Mobile, Apple's devices did a few things very well at launch, and incrementally developed into full featured devices that still lack some of the more unique features of their competitors. Further, in terms of openness, the demographic that embraces Linux' characteristic freedoms is not the same as the demographic that buys smartphones in quantity and then pays for data service. This is a critical fact to consider because a big part of the iPhone's success stems from the fact that it is being pushed by mobile providers who want to capture the cream of the market willing to pay a premium for data services. The Frankenphone. Combining the fractured aesthetic of HTC's Windows Mobile phone hardware with Android's software, based upon Linux' perpetually unfinished DIY openness and Google's Java-like development platform, will not result in a product similar to the iPhone. Instead, it will look a lot like phones that have already failed in the market. Apple's advantage comes from slick hardware designs with a close attention to detail, combined with software that purposely does less so that it can do what it does better. Even Apple's own conservative attempts to broaden its software capabilities with iPhone 2.0 have resulted in instability problems that can be blamed upon both Apple's early releases of its phone operating system and software from inexperienced third party developers new to the platform. Would the current frustrations with iPhone 2.0 be somehow mitigated by additional openness that also embraced all kinds of variables from different hardware makers with less quality control than Apple, a loose committee of additional cooks working to serve up operating system features targeted at every possible conceived need, and a wider third party software group with fewer constraints on illegal behaviors? The Failure of Open. While it is politically unpopular to criticize the well meaning efforts of open source contributors, the failure of Linux on the desktop, the failure of the vaporware Indrema game console, and the failure of the OpenMoko project to deliver a workable phone within a year of its deadline all underline the serious problems open development faces in the world of consumer oriented devices. Open has simply failed to deliver on its promises in the world of consumer hardware. OpenMoko was supposed to release its first mobile phone to consumers for $250 several months in advance of the iPhone. When the iPhone shipped, the group then announced new plans to get its phone out by the end of 2007. Instead, this spring the group announced new plans to move to an entirely different development platform, and ship its phone mid year for $400 with limited functionality and incomplete software outside of basic GSM phone features. Linux's notable successes, from Motorola's Linux phones to the Tivo DVR to Linksys Routers, have often come without any associated openness or freedom, and were instead delivered simply to provide their manufacturer with a free kernel to build upon. This indicates that while Linux may find its way into an increasing number of smartphones, it will likely not be accompanied by the glorious freedom of an open development environment Google has said it would offer with Android. Apple iPhone vs the FIC Neo1973 OpenMoko Linux Smartphone Can Google Succeed Where Open Has Previously Failed? Despite “openness” being Android's strongest competitive feature compared to Apple's iPhone, Google recently revealed that its wide-open development model is intentionally gravitating towards a closed association of top tier partners due to practical considerations. In July, Google accidentally sent out a notice that revealed that it had been seeding private SDK updates to only a subset of its contributors, angering those who believed that Android would be as open as Linux on the desktop or the OpenMoko project. Further, Google has restricted initial development to higher level APIs just as Apple did, further indicating that Google itself realizes that being wildly open to impress a minority of hobbyists will not result in the commercial success of its new platform. That serves to neuter Android's primary advantage over the iPhone. Without delivering on the premise of being wide open, Android is really just a less mature set of Java libraries used to create a specialized binary that runs on a Linux foundation. Unlike Apple's iPhone, Android phones won't have a slick user interface developed by professional artists, nor the iPhone's legacy of mature software development frameworks crafted over the last thirty years, nor the iPhone's tightly integrated hardware with award winning industrial design, nor its marketing power tied into the iPod and Apple's retail stores. Android won't be an open iPhone, it will only be a Windows Mobile phone with a better kernel that runs specialized Java software instead of Win32 or .NET code. Don't expect consumers to be impressed by that. The Biggest Missing Feature. There is one remaining factor that strangles to death any last remaining hope that Android might assassinate the iPhone and assume the crown of the “DOS of smartphones.” That is: Android delivers zero price advantage to consumers. In 1981 and 1991, consumers who wanted Apple computers faced the sticker shock of a somewhat arrogant price tag. Apple sold its computers, as it still does, at the higher end of the market, but there was simply far more range in prices available. In 1981, that meant the Apple II was $2600 and the new Apple III was $3500, even before you added a monitor. On the low end, Commodore sold its far less powerful, but “still a computer” Vic-20 for $300, while IBM entered the market with the IBM PC at $3000. Over the next few years, Apple focused on delivering additional sophistication at the same price, releasing the $10,000 Lisa and then the $2,500 Macintosh. IBM continued selling PCs in the same $3,000 to $10,000 range, but other DOS PC vendors began selling machines at prices that ranged as low as $1500. That left Apple with a roughly $1000 price premium over low end PCs. The products weren't really comparable, but consumers only saw the huge price difference. In 1991, Apple was still selling moderate to high-end Macintoshes for $3,800 to $10,000; the crippled Mac LC was $2500, and obsolete-at-birth Mac Classic ranged from $999 to $1500. Windows allowed PC makers to ship a functional $1500 PC and claim a rough approximation to Apple's $2500 entry level system, maintaining that apparent $1000 price premium. Today, pundits are lucky to find a Dell or HP system that is even a couple hundred dollars less than a comparable Mac. However, in the smartphone business, the iPhone 3G is now the same price, if not less, than generic competing phones on the market. Even more significant is the fact that the price of the phone hardware is nearly nothing compared to the cost of the service plan. This fact simply eases any price premium that could cause buyers to flock to a smartphone running a generic operating system over buying the iPhone 3G, regardless of whether it runs Windows Mobile or Android. 1990-1995: Planting Software Seeds Android Partners Have Already Failed. That same pricing principle similarly prevented buyers from considering many of the alternatives to the iPod. While Apple's original iPod models were more expensive than many of the first MP3 players on the market, they were price competitive with models offering similar features. By 2004, it was Apple who was undercutting MP3 competitors on price. Microsoft offered zero price advantage when it began selling the Zune, a major factor in its failure, but Microsoft simply couldn't out-price the iPod; it was already losing money offering the Zune at the same price as the iPod. Apple now has tremendous market power in buying RAM and other components that will prevent any competitors from being able to offer a huge discount over the iPhone's $199 price tag. Even if competitors were to give their phones away, they would only offer a $200 discount to users who would then still need to pay the same mobile fees to use the phone. Android's other partners, including Samsung and LG, have already failed to capture any significant market share in the music player market. Are they going to maintain their position as smartphone makers now that they face similar competition from Apple, its iPod ecosystem, its iTunes Music and Apps Store, Apple's retail store experience, and other factors that are pushing the iPhone? If they can, it is not obvious how partnering with Android will help. Other Problems for Android. Android was announced in early November 2007 and was followed with an early preview SDK within a couple weeks, a month ahead of Apple's initial announcement of the iPhone 2.0 SDK. However, between March and July 2008, Apple delivered nine progressive releases of its SDK, opened its App Store, and sold 60 million apps, raising $30 million to support iPhone software development in just the first month. It has since released three more SDK updates to developers related to iPhone 2.1, which is expected next month. Android just published its first open SDK beta update earlier this week, warning developers that “applications developed with it may not quite be compatible with devices running the final Android 1.0.” Additionally, Android still has no phones available. By the time the HTC Dream is expected to launch, Apple will have an installed base of around ten million iPhone (and iPod touch) users supporting software development through iTunes. The business model for selling Android apps is no better than that for selling jailbreak iPhone apps: there is no iTunes Apps Store to promote them, so users will have to track them down on their own. Android developers also have no real freedom that jailbreak iPhone developers lack. The only difference is that there are ten million iPhones to sell jailbreak apps to, and currently zero Android phones. If selling a jailbreak iPhone app sounds like more trouble than its worth, imagine trying to sell Android apps to a non-existant audience. Now add the official iPhone App Store into the mix, where publicity, promotion and profits are booming. What platform is going to have the most applications? How many users will flock to a smartphone platform with no apps? The wisdom of releasing a desirable phone and achieving a significant installed base before releasing an SDK makes a lot more sense in retrospect. Additionally, while Apple has a decade of experience in shipping regular updates to Mac OS X and its Xcode developer tools, Google has only shipped a random assortment of web-oriented SDKs (a number of which have been abandoned) as a tangent to its core business of selling advertisements. When the Android SDK 1.0 is finished later this year, developers will not only lack an installed base to sell their apps to, but will also have no high profile market for selling their apps in, and subsequently no financial incentive to develop applications that add value to the Android platform, just like Linux on the PC desktop. Around the same time, possibly within the next month, Apple will be shipping its second major OS release: iPhone 2.1. Apple will also be upgrading its entire user base to the new software so that developers will have a cohesive platform to target. This mirrors the efforts Apple has taken to upgrade its Mac OS X users to the same reference release. Mobile developers will be seeing money pouring in via iTunes while crickets chirp in the Android section of various mobile online stores. Apple’s iPhone Vs. Other Mobile Hardware Makers: 5 Revenue Engines Same Same, But Different: DOS Model Problems. Android developers will also have a series of other problems to manage. Like Windows Mobile, Android is intended to support everything, from BlackBerry-style keypad phones with a small touchscreen to the simple Windows Mobile Smartphone form factor lacking a touch screen to iPhone-like full size touch screens. Also like Windows Mobile, Android phone makers will have the option to leave off Bluetooth, WiFi, GPS location services, graphics hardware acceleration, and so on. Each Android phone will also have unique camera hardware, support for different video and audio codecs, and varied support for other differentiating proprietary services demanded by mobile operators. This will force developers to to make complex decisions regarding the lowest common denominator they choose to support. So while the iPhone will have a cohesive feature set, a managed software environment, and a functional market, Android will be a loose federation of hardware makers selling the same random features found on Windows Mobile today, with a chaotic development environment that lacks any central market for users or developers. And it will be run as an experiment by a company with no experience in consumer hardware or platform development. The Missing Tap. One specific example of the “DOS model problem” is that Android currently does not support multitouch. It's not touched on in the API, and Google quietly tap dances around its omission. Why no multitouch? Because multitouch screens are expensive, and most OHA hardware members are more interested in making a profit in a competitive phone market rather than impressing consumers as Apple did with the iPhone. Most existing smartphones, even those trying to directly rival the iPhone, use a stylus driven, pressure sensitive tap screen or a simpler, cheaper touch technology that lacks support for sensing multitouch. The iPhone's screen can actually sense up to five fingers at once, but the primary feature multitouch offers on the iPhone is the two fingered tapping and the pinching effects everyone associates with it. Android could certainly support multitouch if there were a demand for it, but that's the point: Google knows that its hardware partners are cheap and unlikely to put out hardware that actually competes with the iPhone. Instead of using expensive technologies that deliver clever yet largely invisible functionality, OHA members, just like PC makers, are far more likely to add flashy, impractical gadgety fluff that's cheap to tack on, such as slide out keyboards, neon tubes, and scratch and sniff stickers. That's how you impress gullible nerds on the cheap. Google itself is blowing smoke and erecting mirrors to distract from the reality that it being a “DOS vendor” means supporting bargain basement hardware from penny pinching duplicators. Android has been demonstrating some “wow” features such as a Street Maps app that pans around based on an internal compass in the demonstration phone. The problem is that that kind of thing only makes for a fun demo. Nobody needs to twirl around their phone in the air to see a view of the other side of the street, but everyone who has used an iPhone will wonder why they can't pinch to zoom out. Even worse, most Android phones aren't going to have a compass built into them, so Google is demonstrating features most Android users won't be able to use. That Sounds Like Microsoft… Google's design decisions are beginning to look a lot like Windows Vista; rather than actually working to make laptops boot faster, Microsoft came up with the idea of adding a small screen to the back of Vista laptops so users could check their email without having to wake the system up. But this was a stupid idea for a number of reasons, the most obvious being that most users just want a laptop that boots up quickly. Few laptops got the mini screen, but every user who tries Vista on their laptop will wonder why it doesn't boot up as fast as Mac OS X Leopard. In the same way, Google is advertising features for Android that most users won't ever see in their actual phones while ignoring things people will expect based on their exposure to the iPhone. Android is simply selecting the wrong features. Android will offer the advantages of supporting MMS, recording video, and the list of other features Windows Mobile already supplies. Those features didn't stop Apple from firing past Microsoft in the smartphone arena however, just as the Zune's highly touted WiFi and screen didn't phase iPod buyers. Incidentally, just months after the Zune, Apple had not only demonstrated a larger display but a higher definition multitouch screen, and not only WiFi, but functional WiFi that could be used to browse the web or check email. This suggests that Apple, with its faster release schedule, won't stay behind any of the leading features potentially offered by Android for very long. Android partners, however, will find it as difficult to catch up with Apple's unique features, just as Microsoft has been stymied to keep up with Mac OS X, the iPod, and the iPhone. The underlying reason: both Google and Microosft are tasked with maintaing support for a huge variety of hardware options demanded by all their partners. Apple has the unique circumstances to do only what it needs to do itself. Android in Windows Mobile's Shoes. Like Windows Mobile, Android faces a difficult market. In the US, it competes against the popular BlackBerry in corporate markets and the iPhone among consumers. Worldwide, it competes against entrenched market leader Nokia. The difference is that Google, unlike Microsoft, has no in. Windows Mobile was adopted by Windows-bound IT shops despite its weaknesses. Nobody has any preexisting reason to try an Android phone apart from hobbyists and open software enthusiasts, a demographic that has done little to move Linux on the PC desktop. Google also lacks Microsoft's installed base; it's starting from zero. The smartphone industry initially doubted Apple's chances of making much progress with the iPhone, despite the company having the Mac platform, the iPod, retail stores, platform development experience, marketing savvy, industrial design prowess, and so on. Google doesn't have any of those things. Mobile Providers vs Android. Apple also started with an exclusive partnership with AT&T, a three legged race that demanded effort from both. Google is hoping that hardware makers handle the hardware details and that mobile providers will be excited to sell its Android phones. While hardware makers such as HTC clearly appreciate having found a free alternative to Windows Mobile, it's not obvious why providers would be excited about Android, as it promises an openness that most mobile providers strongly oppose. AT&T took a big risk in getting behind the iPhone, as the phone encouraged users to use email rather than fee-based SMS and MMS, it supported WiFi for data access, and it bypassed AT&T's MEdia Net services to plug into iTunes instead. Verizon refused to parter with Apple and grant it those kinds of concessions. Is AT&T going to take a similar risk to partner with a phone that is not exclusive to it, and is Verizon now going to open its arms to support phones that do not exclusively support BREW, VCast and its other proprietary services? While Android may well eat into Microsoft's Windows Mobile business by stealing away its hardware makers, it seems unlikely that Android will ever serve as more than free alternative to Windows Mobile in a market where Windows Mobile is increasingly irrelevant. Android may have the dubious distinction of swallowing Microsoft's mobile business the same way Microsoft ate up the Palm OS, but even if it accomplishes that goal, Google will likely find itself unsustainably hungry immediately afterward. It will also find itself swimming in a shark tank of hungry rivals, including Nokia's Symbian, RIM's BlackBerry, and Apple's iPhone. Symbian is the final generic platform vying for the opportunity to play DOS in the smartphone market. The next article will examine Nokia's chances in its bid to match Microsoft's PC dominance in the mobile market while setting out in a new venture to copy Android's open software model. Did you like this article? Let me know. Comment here, in the Forum, or email me with your ideas. Like reading RoughlyDrafted? Share articles with your friends, link from your blog, and subscribe to my podcast (oh wait, I have to fix that first). It's also cool to submit my articles to Digg, Reddit, or Slashdot where more people will see them. Consider making a small donation supporting this site. Thanks!
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Forbes Prints Insanely Self Serving Attack on iTunes by MediaNet CEO Alan McGlade
Daniel Eran DilgerForbes, best known to many readers as the soapbox Daniel Lyons used to promote--perhaps unwittingly--a pro-Microsoft agenda backing SCO and vilifying Linux and open source, has taken another opportunity to present outrageously false information serving the interests of Microsoft: an impassioned outcry of rage over the success of iTunes.This time, rather than using a journalist Forbes gave its bullhorn to Alan McGlade, the CEO of MediaNet Digital. Although not identified as such by Forbes, his company supplies the music library behind MTV's Urge, Yahoo, FYE, and the Zune Marketplace, all of which are Microsoft’s partner Windows Media DRM stores. I wonder if he has anything bad to say about Apple and its music business?[Daniel Lyons: Fake Steve Jobs and the SCO Shill Who Hated Linux]Tear Down This Wall!In a rapturous plea to abandon Apple, McGlade complained that "In a flat, digital world, walls don't need to be torn down. Thanks to online file sharing and social networking, people are able to go over, under and through walls." No doubt the company stocking Microsoft's Windows Media stores would like nothing more than an open playing field where everyone could compete. Oh wait, companies already can. Stores like eMusic profitably sell MP3s online next to iTunes, and Apple has made no efforts to erect barriers to sales of open music on the iPod. Apple does stop DRM providers from using the iPod, and this incenses DRM providers like Real and Microsoft.The other problem for companies selling egregious DRM is that customers hate their business models. People don't want to pay to rent music, or they would be. They have had lots of opportunity to do so.McGlade is bitter to have partnered with Microsoft--the most deviously anticompetitive and monopolistic company in technology and the biggest proponent of the most restrictive types of DRM--only to lose out in the music business to more permissive and liberal stores like Apple's iTunes and the popular iPod, which will not support anti-consumer Windows Media DRM at all.[Of Apple And Oranges - Forbes]McGlade Cries Over His Own DRM Failure. McGlade weeps out a portrait of his own failure, writing, "How is it then that one of the world's most innovative technology companies has managed to erect its own exclusive, and so far impregnable, kingdom? A relatively small percentage of world music sales occur through digital downloads. But, those that do, happen mainly through iTunes, Apple's online music store. "It's hard to remember any one company establishing such total control over a segment of our culture as Apple has on digital music. The iPod accounts for 70% of personal music player sales, while iTunes is estimated to direct more than three-quarters of all music downloads."Yes it is easy to forget about Microsoft when you are bound to the company's teat. With some objective perspective, perhaps even McGlade could recognize that he bought into a deal that was 'guaranteed to win' because of Microsoft's 97% monopoly hold over computers worldwide. But he lost, and miserably so, as he points out. Now he wants the market to pay him without having to compete. McGlade expects the world to ‘correct’ his defeat because he is simply owned profits for offering DRM in partnership with Microsoft. Sorry McGlade, you have to earn your money.[Microsoft’s Outrageous Office Profits]Double Locked Down!"Apple has maximized its dominance of the digital music market with a double lockdown." McGlade says, but leaves it somewhat unclear what either of those locks are. "The combined clout of iPod and iTunes is mutually reinforcing and gives Apple enormous marketing leverage." Is the iPod at all locked to iTunes music? No, in fact we know, as McGlade earlier pointed out, that downloads only amount to a small percentage of music on all music players, including iPods. Most music comes from users’ own CDs.McGlades' comment is particularly saturated in hypocrisy because the stores he represents--as a competitor to iTunes--are mostly geared toward subscription plans, and therefore lock users to to a specific store and lock them to a monthly fee. That's the real double lock down, but McGlade doesn't want his readers to think about that. He just wants their money.[BBC Prints Irresponsible Rubbish on Apple]Remember: Apple is the New Microsoft.McGlade then describes how Apple is defining popular music, and that it has the power to promote music on the front page of iTunes. He warns that "as digital devices diversify [through the imminent adoption of Microsoft-partnered players]... music lovers will inevitably seek digital music from a multiplicity of sources [selling music from MediaNet]."This makes lots of sense! I know when I find a grocery store offering good deals on everything I need, I run to competitors to see if I can pay more to sign up for subscription memberships that will bill me whether or not I shop with them.McGlade then describes Apple as the Orwellian "Big Brother of the digital music scene." In case you didn’t get the memo that’s being passed around by every flack in the business of shilling, Apple is the New Microsoft, and so consumers should revile the company and flee to the safe harbor of Microsoft, which is now, logically, less of a Microsoft than Apple.Forbes’ Lisa DiCarlo paints ugly pictures of Apple at every opportunity, but really outdid herself with the 2005 headline “Is Apple The New Microsoft?? which castigated Apple for its lawsuits against bloggers. In the same year, Daniel Lyons advised in Forbes’ “Attack of the Blogs? that, “you can't stop bloggers from launching an allout attack on you or your business if that's what they decide to do--but you can defend yourself.? So which is it Forbes?Since then, the idea that “Apple is the New Microsoft? has been aped by such objective thinkers as Paul Thurrott of Windows Supersite, and supreme shill Mike Elgan, the former editor of PCWorld. How they can claim that Apple is bad for being like the company they have made excuses for over the last two decades is difficult to explain. Fortunately, they’re still wrong.[Microsoft Surface: the Fine Clothes of a Naked Empire][Paul Thurrott's Merciless Attack on Artie MacStrawman][Myth 4: The iTunes Monopoly Myth]Forbes' Fraud in Photos.We don’t expect much from Thurrott and Elgan. We might expect more from Forbes. However, in a move that erases any suggestion that Forbes is objective and honest in the information it publishes, McGlade and Forbes put together a slide show of stomach churning, false information that goes far past disingenuous and lands directly in a patch of flat out fraud.The first slide depicts a “DRM is Killing Music" t-shirt featuring an iPod. McGlade says "It's through proprietary DRM software that Apple enforces iTunes/iPod exclusivity." Except that that is a lie. The iPod doesn’t use DRM at all unless users chose to buy tracks online, which only a minority of users do.He then notes that things are changing, starting, he says, with Universal and WalMart. He also notes that "Apple, to its credit, has embraced this shift, offering DRM-free downloads on its site. However, every other retailer chose to offer-DRM free in the open MP3 format except for Apple."This is all very convincing except for the fact that we all know that Apple shocked the industry by announcing the first DRM free deal with EMI. Other groups slinked along later, offering a few MP3s only when browsing Windows-only sites as WalMart does. Apple sells its music in AAC format, which is as open as MP3, but more technically sophisticated and easier to license. McGlade is working hard to associate DRM with the iPod, but he’s withholding the truth to do so.The second slide of misinformation depicts the clunky failure of the Zune, along with a McGlade caption that notes "Serious competition [to the iPod] has emerged in the past year or so, and its impact is beginning to be felt." No it hasn't. The Zune is a joke and a major failure. Microsoft is losing billions in its consumer electronics efforts in order to establish a monopoly position in music with Windows Media, but is failing. McGlade is just sorry to be on the losing side, and is scrambling to tell us that up is down. [Ten More Myths of Zune]More Promotional Zune Fraud.McGlade dives deeper into the toilet to fish out a third slide, which depicts a man in a wireless cafe using a Titanium PowerBook, photoshopped to obscure its Apple logo and further tampered to include what appears to be fake Intel and Windows stickers. To what further fraud will Forbes stoop?Dear Forbes: your next assignment to is photoshop a VW Beetle to look like a generic car, and then use it in an article assailing Volkswagen for being too much like General Motors in the 1970s.But what does a doctored Apple laptop at a hotspot have to do with the music industry? "Samsung, Sandisk and Microsoft's Zune were the first to innovate with features like wireless, access to music subscription services, unprecedented battery life and larger screens,? the caption announced. “Fast wireless puts the 'music anywhere' dream within reach.?The Zune did include WiFi, but it was completely worthless for anything apart from draining the battery. Microsoft limited it solely for use as a way to send exploding commercials to other Zune users. It was Apple that delivered the first and only WiFi music store, delivering the supposed 'dream' of buying music anywhere. McGlade makes no mention of this because he makes no money on sales through iTunes.[iPod vs Zune: A Buyer's Guide]Enter the iPhone."While Apple has scored another hit with the iPhone, the company will posses only a tiny segment, about 1%, of the global cellphone market in the product's first year." McGlade wrote. He should have said, "1.5% of the market in its first month," but his version sounds better for rivals. Why would he need to lie about the iPhone in a music article? "By 2008, hundreds of millions of these phones will employ standard Microsoft software that will make them compatible with most download stores and subscription services." Because that "standard Microsoft software" would sell McGlade's MusicNet content, he has to desperately overreach to suggest that the future will suddenly change and consumers will somehow get excited about Microsoft's truly awful Windows Mobile products, despite their being a complete failure on the market even prior to the release of the iPhone. Microsoft only has a tiny scrap of the smartphone market, about 5%, despite representing a broad selection of phone makers for half a decade. Apple outsold every one of those models in its debut month, selling at a premium price. That adds up to a wide spectrum of flacks, shills, and desperate CEOs ready to bad mouth Apple for their own loss in supporting Microsoft.[Secret iPhone Details Lost in a Sea of Hype and Hate][Apple: iPhone Now Costs Less than Ballmer's Lame Motorola Q]Music Anywhere.The next slide describes diverse devices that can play digital content, and depicts a Pioneer car CD player, which can play MP3 CDs and the radio. That means it can play CDs burned with iTunes, including purchased tracks, but not subscription music or WMA DRM.It strangely makes no mention of AirPort Express or Apple TV and their ability to play iTunes content wirelessly to home stereos or TV, or Apple’s lead in iPod integration with car makers, or its deals with airlines to plug the iPod into in-flight audio and video playback systems. That would undermine the intent of the photos. Besides, Forbes just printed an article by Scott Woolley which pretended that Apple TV was a huge failure compared to the massive losses behind Tivo (tens of millions per year) and Microsoft (billions).As reader Timothy Bandy pointed out, “overall, TiVo-owned subscriptions totaled 1.71 million, up 136,000 on an annual basis compared to the year ago-period.“So if Apple sold 250,000 Apple TVs, it's already doubled the amount of new customers Tivo made last year; or to put it another way, they already have 1/7th of Tivos' customer base without hardly trying. And as you pointed out, I doubt they've lost several million bucks in the process.?[Scott Woolley Attacks Apple TV in Forbes, Gets the Facts Wrong]Double Locked Down Subscription Services.Touting the double locked down rental music business McGlade represents, the next slide notes, "subscription services, which allow unlimited access to millions of music tracks for an average set monthly fee of $10 to $15, have been around for some time." Yes, and have failed miserably! "But with the advent of wireless-enabled players, phones and home devices, they are just now poised to deliver on an awesome promise: access to virtually all recorded music, anywhere, any time." How? Ubiquitous networking "may soon render the idea of exclusive music ownership obsolete." In other words, no CDs for you. You will rent what MusicNet sells you, and you'll like it at whatever price they set. You can rent access from any Microsoft/MusicNet store you chose, and play it on any Microsoft PlaysForSure or Zune player you pick, just not both, because they’re aren’t compatible with each other. Both are, however, double locked down.Music You Want.Speaking of which, McGlade reaches out embrace Latinos and Christian music buyers by advertising two specialty web stores that sell music from... well, you-know-who: MusicNet. For this shameless and desperate advertisement / hit piece masquerading as news, Forbes gets a Zoon, as does MusicNet and its shameless CEO, Alan McGlade. Good luck trying to sell it, they’re worthless! I crank them out like paper money.What do you think? I really like to hear from readers. Comment in the Forum or email me with your ideas. Like reading RoughlyDrafted? Share articles with your friends, link from your blog, and subscribe to my podcast! Submit to Reddit or Slashdot, or consider making a small donation supporting this site. Thanks!
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Forbes' Fake Steve Jobs Is Also Fake On Apple
Daniel Eran DilgerDaniel Lyons is the author of the Fake Steve Jobs blog and a columnist at Forbes. After developing a reputation for attacking bloggers, open source, and any alternatives to Microsoft, Lyons has shed his skin to escape from one scandal while at the same time squirming into position to choke the truth out of his next victim: Apple.Reader Marc Elson sent in a link to Lyons' “Snowed by SCO,? an article Lyons wrote to both apologize for and marginalize his years of articles in Forbes that misrepresented the issues in the SCO Groups' attack on Linux. He blamed his reporting on bad information he'd been fed by SCO. It's easy to backtrack now that SCO is toast; in fact it's rather impossible not to. However, neither Lyons nor Forbes can erase the years of false information and misleading spin they published, which not only idealized SCO but also lambasted any individuals critical of the company. He described anyone supporting Linux as religious folk "convinced of their own righteousness."While fighting for SCO, Lyons also attacked “bloggers? in a front page article in Forbes that screamed, “they destroy brands and wreck lives. Is there any way to fight back?? as if everyone who writes on the Internet operates as a class that can be summarily judged and dismissed at once. [Snowed By SCO - Forbes]Daniel In the Lyons Den Again.Lyons' lack of hesitation in throwing out poorly conceived attacks is getting him into trouble again. He seems to be working frantically to spin together a bizarre new tale of how Apple is going to simultaneously be torn apart by the can-do-no-wrong Microsoft while also turning into a shadow of the evil monopolist itself, threatening us with its fearsome dominance.Lyons resurrected the identical, wholly illogical conundrum of a paradox posited last year by Windows Enthusiasts, principally Paul Thurrott, who spoke in fear of a threatening monopoly position achieved by Apple's iTunes while--puzzlingly--also describing Apple's music business as a pitiful failure that could never withstand the market dominance of Microsoft. Is it part of a new Forbes campaign? Lyons' new work echos other regular articles from Forbes writers, all attacking Apple and reality in the same breath:Presenting Apple TV a supposed flop, despite its profitably outselling the TiVo this year without incurring the tens of millions in losses TiVo has suffered in the last quarter and in every one of the last several years. Promoting MusicNet Digital's failed Microsoft partnership in selling music against iTunes and describing the Zune as something other than a spectacular failure. Even the most giddy Zune fan sites are appalled by Microsoft's lack of support in providing updates and fixes for the Zune's major failures. How is Forbes framing it as some kind of sleeper hit?[The iTunes Monopoly/Failure Myth][Scott Woolley Attacks Apple TV in Forbes, Gets the Facts Wrong][Forbes Prints Insanely Self Serving Attack on iTunes by MediaNet CEO Alan McGlade]When Cost Is No Object: Microsoft Media Center.Reader Robert de Bie forwarded a link to Lyons' breathless accolades over Microsoft's Media Center software, which opened with the line, “Guess who's got the slickest software for handling TV, movies and music? Not Apple.?Lyons compared using a Mac and Apple TV with a PC running Vista Ultimate with Media Center features and an Xbox 360 to relay content to a TV. He raved that the Microsoft solution “can do things with digital media that even Apple can't match.? That's true, as Media Center is principally a DVR, a software version of the TiVo; Apple doesn't sell anything the works like a TiVo to record TV. However, Lyons only noted in passing that “Microsoft charges $400 for Vista Ultimate--$300 too much,? failing to add up that a Mac comes with free Front Row features. Apple TV hardware costs $300; it supplies ultra fast 802.11n wireless and, at a minimum, a 40 GB hard drive.In contrast, an Xbox 360 with a 20 GB hard drive costs $350, and another $100 for slower 802.11b/g wireless. So as a wireless media extender, the Xbox 360 costs $450 (50% more), but gives you half the disk capacity and slower networking.Additionally, the required Media Center software that costs another $400 in Vista Ultimate doesn't magically provide you with a TV tuner, so you still have to buy one.In other words, all the money you throw at Microsoft only gives you software that is otherwise free. Without having to pay for all that software licensing, you can go buy whatever TiVo-like TV tuner for the Mac fits your needs, and solve the problem for hundreds of dollars less.Of course, what Apple wants you to do is go without a TV tuner and an expensive cable subscription and simply buy the TV and movies you want to watch from iTunes. Of course, that's not necessary to use Apple TV; you can also rip your own DVDs or even use it to manage your home movies and free podcasts, something Media Center isn't really designed to do because there's no money in it. Don’t forget that there are more fees involved with Xbox Live services, and that TV downloads are more expensive. You’ll also need to pre-purchase Microsoft’s points, converting your cash into Microsoft Live currency that’s subject to change. And once you buy Xbox Live TV shows, don’t expect them to play on your Zune or Windows Mobile phone the way iTunes content plays on Apple’s iPods and iPhone.Of course, when Microsoft sends writers all this equipment to try out for free, then it’s easy to gush over how great it all works and report, "No crashes, no reboots, no blue screen of death. Stunning," as Lyons did. Had he actually been forced to pay the $840 premium to actually use Microsoft’s system, perhaps he’d sing another tune.While Lyons is certainly entitled to his opinion, he should at least present the facts correctly. Outlining any Microsoft product without a consideration of its true cost is always a mistake, because the true cost is almost always hidden. Lyons also wrote “Microsoft's system supports high-definition video; Apple TV does not,? a line that isn't true. Content from iTunes isn't yet available in HD, but the Apple TV does support HD video from other sources and comes equipped with support HDMI, which only the newest Xbox consoles have. Considering that Microsoft has barely sold any new Xbox 360 units this year, fewer than 20% of installed Xbox users even have HDMI outputs. [Windows XP Media Center Edition vs Apple TV][Forrester Research: Epic Terror of iTunes and Apple TV]Big Brother Says: Apple is the New Microsoft.Since publishing that “Media By Microsoft? article a couple weeks ago, Lyons has ramped up his attack on Apple into a web of false information that approaches his SCO shilling. He even exploits his popular Fake Steve Jobs blog for dramatic effect.Lyons starts his newspeak reporting, ironically enough, in an article titled “Big Brother,? with a comical juxtaposition of Apple's 1984 Macintosh ad and a modern screenshot of Jobs presenting the new 3G iPod Nano against a huge video screen of his own image. Lyons had earlier published the images on his Fake Steve Jobs blog after a reader had submitted them.This is funny stuff, because in both images, there's a greying white man with glasses on a huge TV screen talking. But in 1984, the man is talking about universal ideology to a numb audience, while in the modern scene, Jobs was talking about changing the market for mobile video with a 6.5mm device, and the crowds were enthusiastically applauding.There was one other amusing similarly however: shortly before eating the hammer thrown by the Macintosh girl in orange hotpants, the 1984 Big Brother screen says, “Our enemies shall talk themselves to death and we will bury them with their own confusion. We shall prevail!?In 2007, Jobs has said some similar things about Microsoft, but the Macintosh hammer is actually being thrown at Vista. So while it’s not exactly the same thing, it is a funny coincidence. Along those lines, Lyons provided some examples of how, as an enemy of Apple, he can talk himself to death and be buried in his own confusion.[Big Brother - Forbes]Here's What You Believe.So far, we've just covered the photos on the article. Once Lyons started writing, it was like SCO all over again. He says early iPhone buyers “were threatening to take to the streets again--only this time with pitchforks and torches. They were furious because Apple Chief Steve Jobs slashed the phone's price to $400 from $600, making early adopters look like suckers.?If Lyons really wants to make up garbage and rewrite history, he should confine himself to Wikipedia where he can't do any damage. The people complaining about getting what they paid for were a whiney minority amplified by a desperate press trying to find something wrong with the most successful electronics product launch in history.Anyone who thinks buyers who paid $600 for the iPhone to get the hottest new device available--and who ended up with a phone that cost less overall than even the $99 Motorola Q, and further got a $100 refund credit--are “suckers? needs to reevaluate what being a sucker might mean. Perhaps paying Microsoft $850 for the equivalent of a $300 Apple TV with less storage and a slower network, and then still needing to buy a TV tuner is a better example of being a “sucker.?The only difference is that Lyons didn't get a free iPhone from Apple, but did get a bunch of Microsoft Media Center stuff to try out without having to pay for any of it as the rest of us would have to do, were we inclined to let Microsoft control our TVs.[Ten Fake Apple Scandals: 1 - Phony Rage About iPhone Price and Profits]The SCO Shill Lines Up Behind Microsoft, AT&T, and the RIAA.It might not be a surprise that a writer who identified SCO as safe to cheerlead for because of its seemingly legitimate corporate position would similarly jump at the opportunity to weep crocodile tears for some of the other most reviled companies doing business on the planet. Lyons is apparently not very smart about picking corporate favorites.“It looks like an anti-Apple backlash has begun,? Lyons wrote, noting that NBC Universal pulled out of iTunes to partner with Microsoft's Windows Media DRM-based Amazon UnBoxed store. He didn't mention that NBC also partnered with Fox in setting up a joint Microsoft store, and then went solo on its own website trying to offer ad-encrusted, Microsoft DRM-ed, exploding content. No doubt all of those efforts are going to work out well for NBC.Lyons also said “Vivendi's Universal Music Group also reportedly won't renew its contract with Apple,? without clarifying that only refers to its long term contract; Universal music hasn't budged from iTunes. He also cites unhappy noises from Hollywood about Apple's desire to lower prices to make content more desirable to consumers, who can already obtain movies and TV programming free over the air or via unauthorized downloads.Omitted from Lyon's one-sided overview of the iTunes Store is CBS executives' comments that they are very happy with its deals with Apple, and that both CBS and Fox are offering free season premieres through iTunes.And what about Viacom billionaire Sumner Redstone, who was recently cited by BU reporter Jessica Ullian as saying that “iTunes has 'resurrected the music industry' by creating a legal, affordable, instantly gratifying purchasing system for fans. The challenge now is for the film industry to catch up, he said, and for competing companies to work together to establish new standards and practices.?[CBS and Fox offer free TV through iTunes US - iPod/iTunes - Macworld UK][How iTunes Saved the Music Industry - BU Today]Pity the Poor AT&T.Lyons wrote that “Jobs isn't known for treating partners well,? noting that the iPhone doesn't sell AT&T's worthless media services or overpriced ringtones. That's really an example of Jobs treating the customer well, and the Fake Steve Jobs should know that. Why repeat the “Apple can’t partner myth?? AT&T is making a major turnaround, funded by record numbers of headlines fawning over the iPhone. Apple has propelled Cingular from a middle of the road brand into its new AT&T name, which the company purposely rolled out in conjunction with the iPhone to benefit from the excitement surrounding it. Should we be aghast that Apple declined AT&T's own overpriced MEdia Net TV clips and ringtones? Is AT&T even worried about it?The service provider reported that the iPhone has outsold any phone it has ever introduced. Does that make Apple a bad partner? Would it be better if Apple really was the New Microsoft, extending its support and then yanking it back in a PlaysForSure/Zune style move? Does Lyons really have the extra credibility to burn in making such ridiculous comments? [How AT&T Picked Up the iPhone: A Brief History of Mobiles]More of the New Microsoft Meme.After noting some of Apple's recent successes, Lyons wrote, “the flip side of Apple's success is that Apple has started to seem scary.? Scary, uncertain, and doubtful! “No longer is Apple the plucky underdog out to save the world,? Lyons fears. Oh really? Has evil been vanquished? Is there not still the inky black bile of Windows Media DRM dripping from every alternative store in the universe? Does not Microsoft still have the remains of that $50 billion it took in last year from its monopolies--real monopolies, not the imagined fantasy kind pinned on iTunes by the media? You know, the monopoly in PC desktop operating systems held by Windows, the monopoly in servers, and the monopoly in desktop Office software? The monopolies that earn Microsoft overall profit margins as high as 81% on products that are over a half decade old? From that perspective, Apple could really turn evil over the next twenty years and still not compare to the wrongs we've suffered from Microsoft. Even so, Apple really isn't doing wrong by its consumers. If the best Lyons can do is to suggest that some RIAA labels and Hollywood executives are miffed by Apple's push for low prices, he'd better scramble to find something more problematic than that. I like low prices in content. I don't long for access to AT&T's expensive ringtones.iPhone Price Problems.Apple's iPhone was a better deal at $600 than Microsoft's Windows Mobile Motorola Q at $99, because Apple twisted AT&T's arm to provide lower priced service, making the iPhone around $200 cheaper across two years of use. Apple then dropped the iPhone's price by another $200, making it now almost $400 cheaper than the nearly free phones on the market.Is this wrong? Did Apple harm those of us who recognized value in the iPhone back in June? Did Apple defraud a million people who bought the iPhone at a good price when it lowered the price afterward? [Apple's iPhone Price Cut Unleashes Complaints]Apple TV Only A Flop For Forbes' Frauds.Lyons repeats in passing--without any factual backup--that the Apple TV is a flop. Oh really? Is that because it profitably sold a quarter of a million units with little advertising? Incidentally, that's nearly double the number of new customers TiVo signed up, as reader Timothy Bandy pointed out. He noted that “TiVo-owned subscriptions totaled 1.71 million, up 136,000 on an annual basis compared to the year ago-period.?If Apple sold 250,000 units of the Apple TV, “it's already doubled the amount of new customers Tivo made last year,? Bandy wrote, “or to put it another way, they already have 1/7th of Tivos' customer base without hardly trying. And as you pointed out, I doubt they've lost several million bucks in the process.?TiVo lost $19 million in the last quarter, and $50 million last year. Apple sells the Apple TV at a profit, although not much of one. That's because the company is working to sell content that works on the Mac, and Apple TV only serves as a contributing part of that strategy. Apple is working to expand the market for fair priced Internet downloads, in opposition to high-DRM, high-priced alternatives.Microsoft has lost billions in its consumer electronics products, including the Xbox 360 that Windows Enthusiasts like to compare against the Apple TV. Microsoft also stomped on efforts by Linux users to recycle the old Xbox as a media playback system. Where's the outrage? Where's the “suckers? blubbering? Where's the reporting that “Microsoft regularly betrays its partners?? It's certainly not in the pages of Forbes. [Brent Schlender's Apple TV: Fortune Dud or Fortune FUD?]It's all Downhill From Here.Lyons then complained that iPhone sales must be fading because Apple dropped the price, neglecting to account for the fact that Apple met its million unit sales goal three weeks early. “The next version of OS X, called Leopard, has suffered delays,? Lyons wrote, again failing to compare its 6 month delay to the six year delay of Vista. I guess Apple isn't the New Microsoft after all.Lyons begged for forgiveness after beating on Linux users for years and glorifying a bunch of greedy SCO investors trying to exploit intellectual property rights the company didn't even own. In describing his partnership with Rob Enderle, I downplayed his SCO role after he pleaded for evenhanded coverage of his past, noting that he did publish some correct information after the writing was on the wall for SCO.However, for his shameless attempts to present the same kind of one-sided, half-truth, negative-spin that praises the worst corporations on Earth while reviling the only company that seems to share any interests and values in common with its customers, Lyons has lost the bits of credibility he begged to retain. Shame on him, and Zoon on Daniel Lyons' head. [Daniel Lyons: Fake Steve Jobs and the SCO Shill Who Hated Linux]Thanks to John Schmidt for the “Big Brother? link.What do you think? I really like to hear from readers. Comment in the Forum or email me with your ideas. Like reading RoughlyDrafted? Share articles with your friends, link from your blog, and subscribe to my podcast! Submit to Reddit or Slashdot, or consider making a small donation supporting this site. Thanks!
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Microsoft's Zune, Vista, and Windows Mobile 7 Strategy vs the iPhone
Daniel Eran Dilger What secret partner has Microsoft discovered to bail water from the deck of Zune and its Zune Marketplace music store in a last ditch attempt to take on Apple's iTunes, the iPod, and iPhone? Microsoft's own Windows Mobile, of course, with some help from Windows Vista! Who Else Will Help Zune? Certainly not Nokia, as one Zune fansite tried to suggest last week. Nokia has nothing to gain by promoting the Zune. A more credible sounding rumor, as long as we're inventing stuff, would be to instead suggest that it could be Sony Ericsson that is interested in putting the Zune software on its new phones. At least Sony has already demonstrated its complete failure at selling music on its own, and actually has a Windows Mobile phone in the works. The simpler reality is that Sony Ericsson may have no choice in the matter. Microsoft is clearly out to wed the Zune with Windows Mobile in a effort to get the two failures to prop each other up in its “I'm not dead yet!” fight against the iPhone. Microsoft is likely to make inclusion of its Zune Marketplace a mandatory feature that its Windows Mobile partners will have to swallow, just as it forced its PC licensees to bundle its Internet Explorer browser and later Windows Media Player, while prohibiting them from seeking their own bundling deals with other companies. Microsoft took quick steps to block Compaq's licensing of QuickTime, for example. Those deals were bad for HP, Compaq, Dell, and the other PC makers, bad for competition within the tech industry, and subsequently bad for consumers. However, they did enable Microsoft to use its powerful Windows monopoly position to push proprietary standards and or anti-interoperable technologies designed to expand its monopolized control, while making big money selling Windows in a market that lacked any alternatives. Will Nokia Rescue Microsoft’s Zune? Haha No. Apple in the Web Browser Wars: Netscape vs Internet Explorer Microsoft's Plot to Kill QuickTime A Lot Has Changed. This time around however, all Microsoft has to leverage is Windows Mobile, a struggling platform with little respect in the industry, now in a distant third place. Further, the technology Microsoft is trying to push is essentially its Windows Media DRM, which has already been swept up and trashed by Apple's iTunes, QuickTime, and the iPod. The dismal fate of Windows Media was sealed with the failure of PlaysForSure. The Zune's new, albeit incompatible, reincarnation of Windows Media DRM never stood any chance of making any headway. However, the most problematic part of Microsoft's strategy of pushing its Zune Marketplace store on its Windows Mobile partners is that music stores don't make money. Apple's iTunes Store is the biggest online music store on Earth, and does tremendous volumes of sales. Still, Apple reports minimal profits from the store. It recently warned its investors that it's now selling so much through iTunes that the low profit, high volume venture may have a negative impact on the company's overall profit margins. As problems go, that's certainly a nice one to have. Apple is not at all worried about turning a big profit with iTunes because it runs the store exclusively with the intent of ensuring new content for the iPod, iPhone, and Mac. That in turn sells its hardware. However, Microsoft doesn't have hardware sales to nurture. It has barely sold two million Zune units, many at fire sale prices (compared to 150 million iPods, 93 million of which have been sold since the Zune's release). It now faces impossible odds in tilting against the momentum of iTunes' rapidly spinning windmills, with no possible upside in terms of eventual music store profitability. There's simply no way that any amount of investment in the Zune Marketplace could deliver profits, because Microsoft is competing against Apple's non-profit motivation behind iTunes. Further, Windows Mobile is similarly a big loser with no potential because Microsoft has little ability to profitably license its mobile software. It's competition is the iPhone OS, which Apple develops for free to sell iPhone hardware (Microsoft does not sell its own phone hardware); RIM's mobile OS, which is also free for BlackBerry hardware; the Symbian OS, a partnership between hardware makers; and various mobile distributions of Linux, including Google's Android, all of which are also run as profitless ventures to support hardware sales (or in Google's case, service sales). The Great Google gPhone Myth Why Microsoft’s Zune is Still Failing 10 FAS: 7 - Apple’s Hardware and Dvorak’s Microsoft Branded PC Good Money After Bad. All that unpleasant reality hasn't phased Microsoft. Its executives haven't found a way to make money in consumer electronics yet, and the company's attempts just keep getting more and more expensive. Barron's recently featured the speculation of one Microsoft investor who hoped the company would spin off its hemorrhaging online services division as well as its profitless entertainment and devices unit, which includes the Zune, Xbox, and Windows Mobile. The investor calculated the value of Microsoft's other businesses (its high profit Office, Windows, and server divisions) and decided that the market wasn't assigning any value at all to Microsoft's consumer electronics and services products divisions. No wonder; they're nothing but a huge drain on Microsoft! Even so, the investor seemed to think there must be some value to obtain from selling off the black holes, citing the market value of the highly profitable Nintendo. The investor's real intent seemed to be finding a way to “discourage the company from overinvesting in the business.” Microsoft's stock has only appreciated by 6.3% over the last decade. Apple has appreciated 1,822.6% in the same period. Microsoft is trying to develop new markets as Apple has, it's just failing to do so. Microsoft’s Outrageous Office Profits Strength in Bundles. Microsoft has always been interested in promoting its products by using strong ones to prop up weak ones. From the start, it bound its strong Mac apps to the rather weak Windows offering to invent the PC platform, and has since tied Word and Excel to a suite of otherwise fair to marginal apps under the Office banner. Once Windows became established, the company tied in an unfinished, third-rate web browser and was able to rapidly build it into a strong competitor through market inertia. On the server side, Microsoft similarly ties in tragic products into package deals that often (but not always) enable the weak bits to gain some traction. So Microsoft is again working to stitch together its various properties to support each other, but now most all of its recent products are in flames and desperately need reinforcement. There's only so much one failure can do to support another. Even worse, Microsoft's historic strengths are no longer working. The Windows monopoly was supposed to brace up Windows Media Players, Windows Media Center, Windows Mobile, Windows Live Search, Windows Live Soapbox, and a series of other cobranded products that haven't gone anywhere. Office Wars 3 - How Microsoft Got Its Office Monopoly Office Wars 4 - Microsoft’s Assault on Lotus and IBM Why Does Microsoft Really Want Yahoo? Certifiable Failure. Windows itself is now in the throes of crisis, as the failed launch of Vista nearly two years ago has signaled the undoing of Microsoft's ability to rely on its desktop monopoly to advance failures into strength. Is Vista going to put out the Zune's flames by beating with its own flame-engulfed wings? That's part of Microsoft's current strategy, which included rebranding PlaysForSure as 'Certified for Windows Vista.' The Zune is also Certified for Windows Vista, despite not being compatible with the Certified for Windows Vista PlaysForSure. Confused? You needn't be for long, as the remnants of Microsoft's one-time strategy for creating an 'ecosystem of hardware, service, and software partners' to provide choice and freedom in the music industry is pretty much dead now. All of Microsoft's significant PlaysForSure store partners, including AOL MusicNow, MTV URGE, Musicmatch Jukebox, Wal-Mart Music, Yahoo Music, and Microsoft's own MSN Music have now unplugged their PlaysForSure stores, ironically making the brand among the least accurate names for a service ever. The remaining stores making use of PlaysForSure music, principally Rhapsody and Napster, are now on death's door. PlaysForSure video stores such as CinemaNow, which once worked with Microsoft's PlaysForSure-certified Portable Media Players no longer do. Even Amazon's UnBox service, which is supposed to sync with some devices that are PlaysForSure-certified, has not bothered to get certified under Microsoft's program. Incidentally, the failure of Yahoo Music and Microsoft's MSN Music (and the company's outrageous plan to simply unplug its customers from DRM authentication) caused CNET to wonder if Apple might be next in line to make users' music purchases unplayable, echoing the poorly conceived idea that Microsoft's Vista failure, its mobile platform incompetence, and desktop viral malware security crisis all somehow also predict a similar certain doom for Apple at some point in the future. For some reason, CNET saw no connection between the failure of Yahoo and MSN (hint: PlaysForSure), and no reason to speculate about the future of other media stores facing actual failure and likely disbanding in the near future, including Rhapsody, Napster, UnBox and Microsoft's own Zune. Nearly all of the recent DRM deactivation controversies, including Major League Baseball's, have been related to Microsoft's software, although Google decided to similarly to dump users of its paid video when it pulled the plug on Google Video last fall. Rise of the iTunes Killers Myth Forrester Research: Epic Terror of iTunes and Apple TV But Wait, What About This Ecosystem Failure Sounds Familiar? The complete failure of Microsoft's PlaysForSure hardware and software licensing program paints a damning prophetic picture foreshadowing the fate of Windows Mobile. Pundits often dance around this fact by spewing Microsoft's talking points: Window Mobile has lined up scores of hardware partners! Windows Mobile has lots of software partners! Choice is good! Oh wait, that's the same stuff they said about PlaysForSure in explaining why the iPod couldn't stand a chance once Microsoft could deliver its Windows Media Player reference designs and the Windows Media DRM that would enable PlaysForSure stores to open their doors. The only real difference between PlaysForSure and Windows Mobile is that the former was expected to prove that the Windows licensing model would work well among mobile devices, while the latter has already proven for some time now that it can't. Windows Mobile has been a snowball of failure ever since it launched a half decade ago with clumsy-looking phones running buggy, poorly architected software with abysmal battery life that makes the iPhone 3G look exceptional in comparison. Windows Mobile simply shares too much in common with the PlaysForSure failure to escape the event horizon if its blackhole. Pairing software from one vendor to hardware from another is problematic in the PC market, but completely untenable among highly integrated mobile devices. Microsoft tried to blame PlaysForSure incompatibilities on its music store and hardware partners, but the real problem was the model. Microsoft's own software problems didn't help either of course. The issue on Windows Mobile is even more significant because having functional mobile phone service is far more critical than being passively entertained by an MP3 player. Unchecked diversity among the devices of a platform is a bug, not a feature. The mantra of choice and freedom, hailed among Windows enthusiasts and homebrew hackers alike, makes for a great mission statement but in reality delivers products that just don't work. It's great to be able to compile your own servers from free and open source software, but most consumers don't want the accountability that comes along with that freedom when trying to dial 911 from their phone. For that matter they don't even want to troubleshoot the installation of a firmware update, or deal with why software designed for a tall screen looks awful on a square screen. With an integrated product like the iPhone, they can complain to Apple for a fix. With Windows Mobile, you get passed around by Microsoft from the mobile operator to the hardware maker to the third party software developer. Everyone is responsible but nobody is accountable. The Spectacular Failure of WinCE and Windows Mobile Count the Flames of Windows Mobile. And so, in terms of failing platforms, Windows Mobile is closer to PlaysForSure on the flames meter than it is to the only smoldering Vista, which is a moderate success by comparison. If attaching the Zune, Microsoft's phoenix on fire, to Vista's train wreck didn't have any impact on the relative salvageability of either, what will Windows Mobile 7 do for Zune 3 a year and a few months from now in late 2009 at the earliest? That's Microsoft's current schedule, barring any customary delays. By then, Apple will have had the iPhone in international distribution for more than a year, the App Store will be a year and a half old, and the WiFi iTunes Store will be more than two years old. What in Windows Mobile 7 will make a difference for smartphone buyers? According to Microsoft: copycat touch controls hobbled by an interface trying to look like Vista (below, and yes they did spell Internet Explorer wrong, as well as putting a space in ActiveSync), and no doubt a major new push to force Zune Marketplace media sales down the throats of Windows Mobile users in imitation of Apple. Microsoft is no Apple. The problem of course, is that the market for Windows Mobile phones is almost exclusively among corporate IT users, who don't give a rats ass about downloading music from the Zune store. So there's really little potential for cross pollination between Windows Mobile and the Zune. In contrast, Apple originally marketed the iPod and iPhone to consumers, who do buy up music to the tune of billions of tracks every year. Apple now has success to build upon, and has targeted its year-old iPhone platform toward the enterprise, with development tools, a software deployment infrastructure, and management utilities that in most cases meet or exceed what Microsoft has delivered over past decade on WinCE and Windows Mobile. On top of that, the iPhone platform has a far superior, standards-based web browser, development frameworks recognized to be easier to use than Microsoft's mobile .NET, and a core OS that is simply more stable, not to mention a user interface that's designed to look good and be simple to use rather than to match the flashy branding of a failed desktop OS. WWDC 2007: Kevin Hoffman Presents .Net vs. Cocoa The Other Problem: Windows Mobile is Going Down. Anyone banking on Microsoft's promises to deliver Windows Mobile 7 on time by the end of 2009 should also consider the company's track record in delivering Windows Mobile updates. The company initially intended to get Windows Mobile 5 out next to Longhorn [Vista] in mid to late 2004. Windows Mobile 5 was actually released in May 2005, and Vista finally popped out “officially” at the end of 2006, although one couldn't actually buy it until it was relaunched to consumers in early 2007. Even after Microsoft “released” its subsequent Windows Mobile 6 nearly a year later (based upon the same underlying WinCE 5), it took six months or more for many of Microsoft's partners to approve it and set up distribution so that users could actually get the software on their phones. In contrast, Apple releases regular iPhone updates every month or two that are always available to users immediately after their release, directly from Apple. Microsoft doesn't exactly have years of leisure at its disposal. Windows Mobile has already been hit hard by competition from the iPhone and from other rivals, including RIM in the enterprise market and Symbian internationally. That competition has resulted in Microsoft's mobile market share slipping year over year. This year, Microsoft failed to meet its frequently repeated goal of selling “more than 20 million units” through all of its various hardware partners, and instead only sold 18 million. Microsoft senior vice president Andy Lees blew off the missed goal as a “rounding error.” He cited numbers from IDC that indicated Windows Mobile had grown from 11% to just under 13% of the worldwide market for smartphones, growing faster than the overall market, and that unit sales of Windows Mobile phones have both outpaced sales of BlackBerry phones and outsold the iPhone by a factor of two. Windows Mobile misses target Oops, Microsoft Fibbed a Bit There. Canalys reports that Microsoft actually started out with a 23% share of the smartphone market in Q1 2004, which fell to 18% in Q1 2005, then down to 12% in Q1 2006, where it remained in its Q4 2007 figures. Apple ranked at 7% worldwide in Q4 2007, but that was based on sales in one market, of one model, and on one mobile provider, after only being on the market for six months. Smart mobile device shipments hit 118 million in 2007, up 53% on 2006 (Canalys press release: r2008021) If the best Microsoft can do is to claim victory for selling twice as many phones as Apple, worldwide across all of its partners despite having a many years long head start and that great ecosystem of manufacturers behind it, then it should probably just not say anything. Incidentally, with the release of the iPhone 3G, AT&T is reporting having doubled its sales volumes, not to mention all of the other new markets the iPhone 3G is now being sold in worldwide, at half the price of the original model. Within just the US smartphone market, which was Apple's only market last year and is also Microsoft's strongest market for Windows Mobile, the iPhone grabbed a 27% share in its debut third quarter of 2007, and maintained a 28% share in the fourth quarter 2007, behind RIM with 41%, but ahead of Palm at 9%. Adding up all of the Windows Mobile manufacturers selling in the US, Microsoft could only claim to have its software on 21% of the phones sold, a significant step behind Apple. Canalys, Symbian: Apple iPhone Already Leads Windows Mobile in US Market Share, Q3 2007 iPhone Grabs 27% of US Smartphone Market Also, all of these figures bundle in all of the “convergence” Pocket PC mobile devices sold by Microsoft's partners, but none of the iPod touch units Apple sells, which are likely to be in well in excess of its iPhone sales. So Apple's mobile WiFi platform is actually far larger and growing much faster than market statistics companies report under their smartphone category. Anyone hoping that Windows Mobile 7 to going to reverse that trend when it arrives over a year from now is seriously delusional. Did you like this article? Let me know. Comment here, in the Forum, or email me with your ideas. Like reading RoughlyDrafted? 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Six Reasons Why Apple May Never Open the iPhone
Daniel Eran DilgerThe history of the Office Wars provides interesting context for Apple’s software strategy with the iPhone today. While third party software development offers all kinds of tantalizing potential for the new mobile, there are a half dozen reasons why Apple may not ever deliver the iPhone fully open to third party development, following the model of gaming consoles.Office Wars 1 - Claris and the Origins of Apple’s iWork Office Wars 2 - Microsoft’s Outrageous Office ProfitsOffice Wars 3 - How Microsoft Got Its Office MonopolySoftware Lessons For the iPhone: 1997 - 2007.When Steve Jobs gained the opportunity to retake control of Apple in 1997, he immediately set out to build and assemble a software business for the Mac platform. Apple restarted serious development of QuickTime, much to the chagrin of Microsoft, which had targeted its sights on quickly destroying it to make way for monopolistic expansion of its Windows Media. [Microsoft's Plot to Kill QuickTime][How Microsoft Pushed QuickTime's Final Cut][Why Apple Failed][How CPR Saved Apple][Why Apple Bounced Back]In addition to repurposing NEXTSTEP as Mac OS X and buying and building a series of professional and consumer software suites, the new Apple also developed the iPod platform. The iPod used intuitive software to differentiate Apple’s hardware, launching the computer maker into a new market for sophisticated, data-driven consumer devices. Microsoft’s own efforts in consumer electronics have flopped miserably with the failures of its Handheld PC, Pocket PC, UMPC, Windows Mobile, Media2Go, Mira, SPOT, and Personal Media Center initiatives, among many others.[Apple’s NeXT Server Offensive on Microsoft][The Spectacular Failure of WinCE and Windows Mobile][Windows XP Media Center Edition vs Apple TV]Microsoft Outgunned in Software by a Hardware Maker.Microsoft was late to realize the software threat posed by the new Apple. Five major revisions and over thirty free updates to Mac OS X have ran circles around Microsoft’s capacity to deliver one desktop operating system software update and a couple service packs since 2001.[Leopard, Vista and the iPhone OS X Architecture]Apple also introduced three generations of iWork as an expanding productivity suite during the four year hibernation period Microsoft left since its last version of Office for Mac. Apple delivered support for Microsoft’s own proprietary OOXML file format on the Mac even before Microsoft itself could. At $79, iWork will eviscerate sales of the $400 Office for Mac, which has until now been a cash cow lazily ruminating for years between releases.This year, Apple also targeted and destroyed Microsoft’s fledgeling efforts to repurpose WinCE as a smartphone platform, seemingly overnight. That has given Apple a significant new platform in the iPhone, soon to be joined by the new iPod Touch. [What’s New in iWork 08][Apple's Secret iPhone Application Business Model][Curious Stuff About the New iPods]Six Reasons the iPhone Will Stay Closed.Will Apple give third party developers the keys to its new vehicle and allow them to drive off with the value it has created? It hasn’t yet, and there are a number of reasons to think that Apple won’t. Note that I am not expressing an opinion that the iPhone should be left closed, but rather simply presenting why I think it is unlikely Apple will ever open it up in the same way the Mac is open to any and all development.First, the company has lined up a suitable outlet for third party expansion via the standards based web platform available within Safari. That’s not enough to do everything developers want to do--it has serious constraints for creating games, for example--but it offers a good enough alternative to serve more than 80% of most developers’ needs. [Mobile Disruption: Apple's iPhone and Third Party Software] [iPhone Gremlins: Crashing, Security, and Network Collapse!] Second, the company has developed and begun production testing of online software sales through iTunes, currently limited to 5G iPod games. This mechanism appears too sophisticated to simply be designed for a half dozen $5 games. Apple is quite obviously going to distribute other software through iTunes for the iPhone. If it were going to be open, there would be no need for such a secure software distribution system. [Apple's New Dual Processor Game Console] [Hacking iPod Games: How Apple's DRM Works] Third, historical perspective suggests that once a solid platform has been established, a vendor can sell software as fast as it can deliver it without even trying very hard. Apple’s Claris, Microsoft’s Windows, and the game consoles from Sony and Nintendo all provide examples of this. The iPod’s success suggests Apple can establish a viable mobile platform without the need for software partners. It can handle software transactions as fast as it can sell iTunes songs. That’s big. [Office Wars 1 - Claris and the Origins of Apple’s iWork] [Office Wars 2 - Microsoft’s Outrageous Office Profits] [Office Wars 3 - How Microsoft Got Its Office Monopoly] [Nintendo Wii vs Microsoft Xbox 360, Sony PlayStation 3] Fourth, depending upon large third party developers has caused Apple--and Steve Jobs--some severe headaches. Microsoft's late 80s betrayal of the Macintosh led to Apple’s enslavement to Office, and induced CEO John Sculley to sign away broad intellectual property rights to Microsoft, which Microsoft then immediately used as a weapon against Apple. In the mid 90s, Microsoft led Adobe, Macromedia and other large companies to abandon the Mac platform. In the late 90s, those same companies refused to support Apple’s new Rhapsody plans following the company’s acquisition of NeXT, forcing Apple to spend half a decade retooling the Mac OS, primarily so those developers could sell their existing apps to Mac users without much effort, even while they were earning fantastic software profits and delivering minimal innovation. In other words, Apple’s technology game plan was delayed for a half decade so that Microsoft could sell its $400 copies of Office and Adobe could sell suites of its $500 and up creative applications, all while Apple did all the work in adapting its $99 operating system to run their Classic Mac OS code with minimal effort. Prior to returning to Apple, Jobs experienced his own betrayal and abandonment at the hands of partners--including IBM, HP, Digital, Data General, and Sun--related to NeXT and OpenStep. In all of these cases, the third parties were simply acting in their own best interests. With the iPhone, Apple will act in its own best interests. It will carve out a phenomenally powerful software platform for itself. [Why OS X is on the iPhone, but not the PC: The History of NeXT] [Office Wars 3 - How Microsoft Got Its Office Monopoly] [Cocoa and the Death of Yellow Box and Rhapsody] Fifth, open Application Programming Interfaces involve complex management and maintenance. This is not a problem unique to Apple; it exists for Microsoft and every other company that offers an API for developers to build upon. An API is an interfacing boundary between the software supplied by a vendor and the software supplied by third parties. Ideally, an API allows third parties to do everything they need very cleanly. That allows the vendor to make changes on their side of the API curtain without causing any compatibility problems for software on the other side. In reality, nearly every change and update has significant impacts for third party developers. The more complex and low level of an API being exposed, the more difficult it is to manage significant changes without introducing problems for third party partners. Apple has worked to develop objective APIs that are stable and resilient to internal changes, but if developers are unsatisfied with the level of performance or portability provided, they will work around the API boundary, almost guaranteeing that any significant changes made on Apple’s side will break their applications in the future. Microsoft has often accommodated such “bad programming? by expanding APIs and creating new ones, and lugging around a legacy of old APIs to retain broad compatibility with existing applications. The result is that it is very difficult for Microsoft to actually innovate, or to offer OS level enhancements that upgrade existing applications. This is particularly a problem for Windows Vista, which is hamstrung between the problem of providing entirely new hardware driver APIs on one hand while also maintaining a boatload of crufty legacy APIs on the other. It is absolutely the worst of both worlds. [Five Windows Flaws] [Leopard vs Vista 5: Development Challenges] Sixth, as is the case with software APIs, closed hardware platforms offer a vendor open flexibility for future expansion, portability, and upgrades. With the Xbox, Microsoft didn’t provide a wide open set of APIs for developers, only a subset for building very similar types of games. This closed API allowed Microsoft to move the console from Intel to PowerPC hardware in the Xbox 360 without extreme problems, something the company was unable to maintain earlier when it tried to deliver Windows NT for various hardware platforms in the late 90s. Apple has already benefitted from the flexibility of a closed hardware platform on the iPod. Had Apple allowed developers to write applications for the iPod, it would have to string along support for those old applications across every new generation of the iPod. Having to do that would complicate Apple’s own efforts to deliver new iPods. Additionally, customers would be upset with Apple’s iPod if the apps they downloaded crashed, installed spyware, or caused performance problems. While a rogue Mac app isn’t likely to drain a laptop battery down dead, power management is far more critical on handheld mobile devices like the 11 mm thick iPhone. Given that many consumers are already flummoxed by the reality that batteries wear out after a few years, imagine their rage at finding out that Apple allowed them to install a some worthless Tamagotchi pet that destroyed their battery early. Similar problems plague Palm OS and Windows Mobile devices. In particular, Microsoft’s attempts to provide a “one size fits all? solution and broadly license it to hardware developers results in API constraints that limit supported screen size resolutions, break compatibility with existing versions of applications, and severely limit the power management performance of those devices and their ability to deliver acceptable battery life. If there were any meaningful installed base of Windows Mobile phones, it would also be plagued with spyware and viruses, just as Windows is on the desktop. [Inside the iPhone: UI, Stability, and Software] [Device Problems In Search of a Solution] [David Sessions Tries to Milk iPhone Battery Panic in Slate]A Safe API Boundary for Third Party Development.The simple solution to all these issues is to not offer a custom, wide open API at all, and instead leave third party developers to build applications that make use of open web standards. Nothing new to learn, no barriers to adoption, no proprietary development tools to maintain, no pleading with developers to support a new platform that remains unproven in the marketplace, and no third party crisis to manage when the hardware and software are significantly upgraded.No API, no problem! Hackers can discover how to install tools and handy mini-apps, but Apple’s next software update or hardware revision won't have to figure out how to maintain compatibility with those hacks. That allows the hackers to hack without holding things back. Meanwhile, Apple can reserve the right to offer highly integrated applications of its own that take full advantage of the underlying system without revealing or sharing its intellectual property secrets with third parties that may choose to use those secrets against it--just as Microsoft did to Apple with Windows in the late 80s, or as Sony did to Nintendo with the original PlayStation just a few years afterward.[Mobile Disruption: Apple's iPhone and Third Party Software]Closed Development Involving Third Parties is Not Open.Incidentally, this is the same closed model that resulted in great success for Microsoft and Sony after they betrayed and then supplanted their former partners. Microsoft set up the illusion of an open, developer-friendly platform with Windows, but then used its home field advantage to plot out the assassinations of any and all of the potential rivals it didn’t want to compete against: WordPerfect, Lotus, Ashton-Tate, Borland, Netscape, Sun, and today’s targets such as Google and Symantec.The unsurprising result was that Windows users ended up using Microsoft’s Word, Excel, Access, Fox Pro, language tools, web browser, media software, desktop search, anti-virus, spyware management, etc ad nauseam. With Windows users completely enslaved to Microsoft’s own applications, it was easy to erect significant barriers to prevent the emergence of any new competitive applications from rivals. Clearly, Windows is only an “open platform? in areas where it suits Microsoft. Further, Microsoft’s idea of who a “competitor? is can change. For example, Windows desktop search wasn’t a rival feature for Microsoft to kill until it decided it wanted Google’s business.[Office Wars 3 - How Microsoft Got Its Office Monopoly]Windows Enthusiasts’ Slavery to a Vicious Master. Whether Microsoft’s closed Windows platform is a bad thing is a matter of debate; Windows Enthusiasts celebrate their enslavement. It is my opinion that Microsoft’s closed Windows platform isn’t bad simply because it is closed, but rather because Microsoft’s insatiable greed is holding back innovation that would otherwise flourish. One example is Microsoft’s Internet Explorer browser, which rapidly advanced until Microsoft destroyed Netscape. After that, it went into maintenance mode hibernation and didn’t budge until Firefox began to threaten Microsoft’s position years later. That’s anti-consumer; Microsoft won’t do anything for its enslaved users until a would-be savior threatens to set them free. Microsoft isn’t bad because it is closed; it is bad because it is disgustingly greedy. Windows Enthusiasts need to stop deluding themselves into thinking that they live in a free world of an open platform. They are slaves, and their master is not only vicious, but also incompetent and has no taste. [Safari on Windows? Apple and the Origins of the Web][Apple in the Web Browser Wars: Netscape vs Internet Explorer][The Web Browser Renaissance: Firefox and Safari]Closed Without Pretense.At the same time, it is possible to voluntarily join a closed platform and benefit from its advantages. Nintendo carved out a closed video gaming empire that required third party developers to pay it licensing fees in order to develop any games to sell for its system. Nintendo’s closed business model worked better than Atari’s with the 2600, which had earlier allowed third party games developers to glut the market with bad games, resulting in the video game crash of 1983. Consumers were left thinking that home video games were done to death and would never recover.Sega, Sony, and Microsoft’s Xbox group have all similarly managed closed gaming platforms to deliver high quality expectations, even subsidizing game consoles to establish user interest. The only differences for Apple’s closed iPhone may be that:Apple’s iPhone hardware sells at a sustainable profit without a desperate subsidy, removing risk and allowing for regular feature upgrades. Apple is likely to use software downloads as a way to integrate the iPhone into Mac hardware sales and its online services, rather than simply trying to make a killing selling $50 to $75 game software titles as the console makers do.[Mac OS X vs Linux: Third Party Software and Security]Software as a Great Differentiator.By offering free or low cost software in the model of $5 iPod games, Apple will be able to use its closed platform to deliver software designed to:attract more iPhone and iPod Touch hardware buyers.earn iPhone mobile service revenue fees.earn commissions from WiFi iTunes sales and related deals. direct new iPhone users to iTunes and Apple TV.draw attention to the Mac, which will offer iPhone integrated features Windows does not. Microsoft does some of the same things with Windows Mobile, which ties into the company’s Windows Server products--including Exchange Server--and is also deeply integrated with the desktop sync services of Windows and its Office applications. The problem for Microsoft is that it does not sell phones or make money on service revenues as Apple does. Microsoft charges expensive client access and software licensing fees, but still can’t make a sustainable profit on its Windows Mobile business. It’s also stuck with lame vendors such as HTC, which make poorly integrated hardware that is embarrassing to use. Microsoft could make its own phone, but like the Zune it would alienate its existing hardware partners; further, the Zune disaster indicated that hardware sales isn’t a core competency of the company anyway. [Phone Wars: iPhone vs TyTN, Treo, Pearl, E62, P990, Q][iPhone Sales vs Zune, Palm, RIM, Symbian, Windows Mobile]Selling Hardware with Software vs Selling Software Licenses.Using software to sell hardware fits in with Apple’s past and present use of free or low cost software to differentiate the Mac. In the distant past, that included HyperCard and QuickTime; today it includes the shareware-priced but highly regarded iLife and iWork apps. The full version of Mac OS X costs $129, while Microsoft’s Ultimate Windows Vista is an absurd $400, the same price as an iPhone!Apple’s strategy of using low cost, high quality software to differentiate its hardware plays well against the fact that consumers simply don’t want to pay for software, while they think nothing of paying big money for desirable hardware. Nobody would pay much for an iPod “OS? or a software music player, but millions of people have paid hundreds of dollars for an iPod.That principle has worked in Microsoft’s favor in the past, as it hides the cost of Windows by invisibly bundling it into PC sales. However, its recent fantasy that consumers will widely upgrade their PCs to more expensive versions of Vista indicates Microsoft is highly delusional. Pro-Microsoft wags can chart out their predictions of “impressive Vista adoption? based entirely upon OEM bundled copies, but consumers don’t want it, and no significant number of people are going to pay big money to upgrade to the $400 Vista Ultimatum. [Windows 95 and Vista: Why 2007 Won't Be Like 1995]The Commodity Future of PC Software.What will happen instead is an increasing commoditization of the consumer PC and its software, driven towards standards by an industry that demands interoperability. Microsoft couldn’t hold back the web with its proprietary MSN a decade ago, and companies that once pushed Windows are now behind Linux, including Novell and IBM. PC OEMs are also rethinking their unilateral relationship with Microsoft as they struggle to survive in the shadow of Microsoft’s vast profits. Rather than paying $400 for a PC with a $50 OEM copy of Windows running IE and Outlook, nagging you to verify your software as Genuine and to upgrade to the $400 version of Vista and to hand your credit card number to the dancing paperclip recommending a subscription to Windows Live OneCare terrorism protection, the $250 PC of the near future will come with a standards based web browser and email client. It will be called an iPhone, and it won’t run Microsoft Office.What do you think? I really like to hear from readers. Comment in the Forum or email me with your ideas. Like reading RoughlyDrafted? Share articles with your friends, link from your blog, and subscribe to my podcast! Submit to Reddit or Slashdot, or consider making a small donation supporting this site. Thanks!
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How Closed Is the iPhone?
Daniel Eran Dilger"Six Reasons Why Apple May Never Open the iPhone" outlined the rationale behind the strategy driving Apple's software plans for its new mobile. At the same time, it's important to take a reasonable appraisal of the iPhone's supposedly closed nature. While Apple is unlikely to open up the iPhone in the same sense as the Mac anytime soon, it is already an open platform in ways that matter. [Six Reasons Why Apple May Never Open the iPhone]Damned If You Do, Damned If You Don't.While it's always easy to criticize Apple's position, it's not as simple to plot out an alternative course that would actually work better, or work at all.Recall that pundits fell all over themselves over the last two decades insisting that Apple do a variety of things they assured us would solve all of the company’s problems, including ideas to:License its OS to other hardware makers.Copy Microsoft's Windows strategies.Compete directly against Microsoft in IT markets.Split into hardware and software companies.Buy Be, Inc. for its BeOS.Adopt the Linux kernel.License Windows from Microsoft.While it was easy for the advice columnists of industry rags--who don't run multibillion dollar hardware companies--to insist at various times that Apple should have done all those things, it was all wishful conjecture. In contrast, Palm actually did all of those things and none of them worked out for that company, which was facing circumstances similar to Apple.[The Egregious Incompetence of Palm]Closed as in Managed, Not as in Locked Down.Apple is keeping mobile OS X devices closed to manage the experience of users, not so much to kill or prevent third party development. The company just officially clarified that, indicating that its policy on third party development was indeed largely related to the difficulty of maintaining APIs for developers, as I described on Monday.[Apple not opposed to native iPhone app development - AppleInsider]Since 2001, Apple has kept the iPod closed in the sense that it has made no efforts to sponsor third party software development. It did not prevent any third party development however, and made no efforts to stop users from either porting Linux or developing the alternative RockBox firmware for it.Apple didn't want an array of shareware applications holding up future development and bringing scorn upon the company for changing how things worked in new models. That policy allowed Apple to remain competitive and nimbly improve iPods across new generations of hardware in various directions with the Photo, Mini, Nano, video, and now the Touch. At the same time, Apple also expanded its own iPod software development in partnerships with Nike+, various games developers, and an ecosystem of integrators, resulting in a platform that is actually openly active despite being officially regarded as closed. The iPod is really best described as a managed platform.Now compare Microsoft's Zune and its Xbox line. While Microsoft welcomes games developers to its platform, it's only welcoming in ways that suit the company. It refuses to allow Linux developers to roll their own firmware, erecting signed boot barriers to thwart any unauthorized software. While Apple has no problem with RockBox on the iPod, Microsoft has worked to stop the XBMC "Xbox Media Center" project, an effort of identical intent. With the iPhone, while Apple has only ever officially supported a web platform for third party developers, it has similarly done little to stop anyone from assembling and distributing their own software for it. So far, it has only been AT&T that has worked to stop certain efforts, and those relate to commercial distribution of hacked versions of Apple's own firmware. [Inside the iPhone: Third Party Software]Software Wrapped in Hardware.Apple's core competency is in offering a managed experience. Its products are known to "just work," a reputation that has spanned two decades. While Apple has only enthusiastically jumped into application software over the last decade, the secret to Apple's slick hardware integration has always been software. The difference between Apple and Microsoft is that Apple sells its software wrapped in hardware. Microsoft only licenses software, and its few and failing hardware products have always really just been software licenses tied to loss leader hardware. That results in Apple being confident that only a small minority of users will want to put Linux on their Mac or RockBox on their iPod, and that in neither case will it pose any threat to the company, because it's happy to offer those users hardware at a profit.However, Microsoft is very threatened by the prospect of its hardware devices being wiped clean and replaced with free software, because it fears it will cut into Xbox Live and Zune Marketplace sales, where the company plans to make most of its revenues. It loses money on the hardware, particularly after all the warranty maintenance it has to pay.[Leopard vs Vista 4: Naked Sales]Apple's Shaken Software Sales Confidence.If Apple is so confident in its software, why doesn't it sell it head to head with Microsoft, either in PC licensing, IT sales, or in kicking open the door to rival Microsoft's Windows Mobile, which embraces development? The answer lies in the irrational, upside down world of software sales that Microsoft has constructed and maintains in place.It's easy to insist that Apple could open up the iPhone and bring about world peace, but that's a lot like insisting that Apple could have successfully licensed its Mac OS, or could have used Linux or Be, or split in half, or any of the other things that may have looked wise until they failed elsewhere. I think Apple feared developing a mobile platform that wouldn't gain critical support. Remember that Apple not only offered the world Rhapsody gold and got nothing but blank stares, but also couldn't sell NeXT's WebObjects even after reducing the price from $50,000 to eventually essentially making it free.WebObjects is the dynamic web application server engine that delivers the online Apple Store and the iTunes Store. Prior to being acquired by Apple, NeXT's WebObjects was used to power Dell's first commercially successful web store and by MCI to develop the back end of its Friends and Family campaign, a feat other providers scrambled in vain to copy but couldn't because the technology was so unique.[Cocoa and the Death of Yellow Box and Rhapsody]I See Screens of Blue; What a Windows-ful World. Apple's software was ignored for years because everyone wanted to throw money at Microsoft for stuff that didn't work.How many times have you had the iTunes store crash during a transaction or even while browsing around? How many times has it gone offline for unscheduled maintenance? Now go search Microsoft's Knowledge Base. It SIMPLY DOES NOT WORK. The only way to reliably find answers in Microsoft's support pages has always been to search Google for it. Yet Microsoft sells everyone the same Active Server Pages that DOES NOT WORK at Microsoft. At the same time, nobody is very interested in WebObjects, the engine behind Apple's revolution in high volume music transactions and its very profitable online Apple Store operation. How many times have you crashed in a database web app and gotten an error message with .asp? That's Microsoft at work. Remember when ATM's didn't crash? That's back when they were mostly all running OS/2. Since many banks have migrated to Windows in the last few years, it's now common to see bluescreens on ATMs. Why did they do that? It's hard to understand. It is absolutely fantastically absurd that major businesses would trust Microsoft with their mission critical applications when Microsoft can't even successfully maintain its own website.Back in the days when AT&T and IBM wielded their monopoly power, at least things worked. Microsoft has killed innovation and replaced it with a cruel joke of arrogant incompetence, and yet retains more cheerleaders than IBM or AT&T ever had. This makes no sense. It’s a bit like the US, which congratulates itself about being a free country while shaking down tourists and taking their shampoo. Relatively little is said about this particularly irrational paradox between fantasy and reality either.Competing Against Stacked Odds.So you have a upside down reality where Apple is not able to sell its excellent NeXT technology despite a proven legacy in high-end enterprise segments well back into the early 90s. In large measure, that’s because of a 24/7 false information system full of Windows Enthusiasts paid to talk about how dangerous the alternatives to Microsoft are, regardless of their actual qualifications to speak about the enterprise market. Now look at the Mac. Apple has fair support from developers, and things are improving as Mac sales are swinging up, but the desktop is still very Windows-centric. Getting games developers to support the Mac is a challenge, and the fact that Microsoft is buying interests in game developers and making them Windows and Xbox-only doesn't help. Building support for a new mobile platform with Apple's limited resources could only be a potentially embarrassing failure. As is the case with WebObjects, I think Apple will have to show the world its utility by applying it first. And also like WebObjects, it may be that no amount of proof would ever convince the IT world that Microsoft is charging them for software that just isn't very good, or that alternatives could save them the outrageous software licensing fees they pay. Faced with the potential prospect of throwing an iPhone developer party where nobody shows up apart from some enthusiastic hackers and shareware authors, Apple decided instead to go it alone, working exclusively with a tight group of developers that it could trust. Apple will likely continue to announce new partnerships with outside services companies like Google, integration with car companies and other hardware manufacturers, and innovative new lifestyle partnerships like Nike and Starbucks. It won't however sit at home waiting by the phone for third parties to call it back about the great iPhone party invitations it mailed out weeks earlier. [Apple's Open Calendar Server vs Microsoft Exchange]Mobile Platform Not Another Desktop.Also note that the mobile application market is very different than the desktop apps market. That confounded the plans of Microsoft and Palm, who both behaved as if they were inventing the next PC as they rolled out their identical software development strategies. Look at what software is available for both the Windows Mobile and Palm platforms: a few useful utilities that could often just as well be web apps, a few mobile games that struggle to sell for $20, and really zero market for anything substantial. There's really no potential at all for profitable $100 - $500 software titles on mobile devices as there is on the PC desktop. Mobiles are a shareware market.Who makes high quality, shareware priced software? Who else but Apple? Who makes anything like iLife or iWork? Nobody can afford to! Adobe sells applications in the $300 and up range. Its consumer applications sell for around $99 each. Apple bundles several good apps into an $80 box, which makes them around $15 programs. No significantly sized company can develop serious software with substantial annual updates and afford to sell it for $15, apart from Apple. That's because Apple is using those titles to sell Macs.[Five Ways Apple Will Change TV: 2]A Messed Up Market.On the PC, Microsoft locked up the applications market by homogenizing the world with Office. Nobody can deliver a full Office at a lower price. Individual companies can deliver a killer standalone app that can't compete against a bundled suite, or alternatively struggle to establish an entire suite to compete against Office, but both options are a high risk, massive undertaking that swims against a heavy current. In neither case could you charge anything close to Microsoft, so even if you could match it in sales, you'd never catch up. Microsoft maintains its monopoly by thwarting competition, not by being so good that people drop alternatives and choose Microsoft. The result is that the rest of the industry - Novell, Sun, Google and now IBM, are all behind OpenOffice, an Office knockoff that is basically free. That's not a functional market.Meanwhile, Apple is delivering iWork, which is good and value priced, but also brand new and demands refinement. I think it will really develop over the next year. I hope Apple releases an '09 version and keeps advancing it rapidly, even if its only making a paltry $80 a copy compared to Microsoft's $300 and up Office. [How Microsoft Got Its Office Monopoly]Opening the Gates of iPhone SoftwareSo the point that I was destined to eventually get to is that Apple has figured out how to roll its own software by basically subsidizing it through hardware sales. There's no way Apple could profitably sell an $80 iWork for Windows or for Linux. Now, imagine an iWork-like mobile productivity pack for $25 for the iPhone, a similarly priced Utilities pack with VNC remote desktop and an ssh client. A couple dozen $5 games. A series of partner packages, BES integration from RIM, and maybe an iPhone Quicken from Intuit (whose board chair Bill Campbell originally ran Claris and also sits on Apple's board). Suddenly Apple's closed iPhone looks a lot more appealing than an "open phone" with as much support as WebObjects and Rhapsody ever saw. On top of Apple's "managed" efforts, there's also the hacker community, which has already developed a handful of tools and even a simple enough installer for non-technical users. That makes the iPhone unofficially open, even if its not part of Apple's managed plans. I have other ideas for iPhone software I'd like to see that I'll write up in an upcoming article. Send me any ideas for titles you'd like to see.What do you think? I really like to hear from readers. Comment in the Forum or email me with your ideas. Like reading RoughlyDrafted? Share articles with your friends, link from your blog, and subscribe to my podcast! Submit to Reddit or Slashdot, or consider making a small donation supporting this site. Thanks!
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Why Dan Frommer and Scott Moritz Are Wrong on iPhone Sales
Daniel Eran DilgerSilicon Alley Insider's Dan Frommer says Apple's announcement of reaching its million mark goal in iPhone sales three weeks early is actually bad news for Apple and is convolutedly "below plan." He also says the announcement only props up the speculative conjecture by Scott Moritz of the Street that Apple's iPhones sales are somehow woefully below expectations. They're wrong, here's why.The PremiseFrommer wrote that Apple isn't selling iPhones as fast as planned and is set to only sell around half of its 2008 goal.His premise revolves around the idea that if Apple were selling iPhones at "a constant rate," a million phones in 74 days would be five million per year. However, because it sold over a quarter of those in the opening day and a half at the end of June, Frommer calculates that sales of the remainder in the 72 days since the first of July mean that Apple is only hitting a "3.6 million annual run rate."By the end of 2008, that would only result in 5.8 million units instead of the ten million goal Apple. [Silicon Alley Insider: Apple's iPhone: 1 Million Is Below Plan]Strike One: The Run Rate Myth.The most obvious problem with that idea is the fact that devices don't sell at a constant “run rate." Apple's iPhone sales took off at launch much faster than the original iPod due to the fact that a swell of early adopters were ready to buy it after being convinced over six months of anticipation. At the same time, many potential buyers held off on plans to buy the iPhone until they could read reviews and get a real sense of how it worked. Many were also locked into contracts with Verizon or Sprint. With only six months of advanced notice, it will still be a few more months before the majority of buyers who want an iPhone even get the chance to buy one without having to pay outrageous fees to cancel their existing mobile contract. iPhone sales are also now taking on the network effect of the iPod, as early adopters show their friends. All these factors have difficult to estimate impacts upon sales that make trying to figure a static “run rate? a very simplistic and pointless exercise.However, there is another factor that simply blows the entire idea of a static “run rate? out of the water. Last November, I predicted that sales of the Zune would bomb that winter because Microsoft had failed to critically examine Apple's historical sales patterns. Sure enough, the Zune was thrown against the rocks by Apple's riptide. Frommer's idea ignores that same reality by imagining that iPhone sales will schlep along at a linear pace. Had Frommer tried to calculate an "annual run rate" for the iPod based on a portion of third quarter sales at any point over the last half decade, he would never have been close to accurate. That’s because Apple’s iPod sales roughly triple every winter quarter.In 2002, it sold nearly as many iPods in its winter quarter as it did the first three quarters combined: 219,000In 2003, it actually sold more iPods in its winter quarter than in the first three combined: 733,000In 2004, it again sold more iPods in its winter quarter than in the first three: 4,580,000In 2005, it sold more than 4 million units every quarter, but still sold nearly three times as many in the winter: 14,480,000.In 2006, it sold more than 8 million units every quarter, and then sold over 21 million in the winter quarter.In 2007, it has maintained quarterly sales between 10.5 and 9.8 million per quarter.[Strike 3: Why Zune will Bomb this Winter]Strike Two: The Have it Both Ways Myth.One particularly annoying bit of analysts' talk about Apple's expectations is that they can't seem to decide if Apple's projections are bad because they are conservative lowballs, or if they are bad for being overly enthusiastic figures the company won't be able to reach. They often try to describe them as both, loading contempt on both sides of the scale. This makes them look very foolish. Do they think we have no memory, or are they just changing their stories back and forth in sheer desperation?Frommer tried to argue both sides at once in the same article. Recall that Apple only ever gave two iPhone sales goals: one million by the end of the first quarter of sales, and ten million by the end of 2008. In his piece, Frommer suggests Apple will only be able to sell 5.8 million iPhones by the end of 2008, based on that fallacious "run rate." That would be just over half of Apple's ten million goal. However, he then says that Apple's immediate short term goal was an unimpressive low ball, no doubt because Apple reached it three weeks early.Apple's stated goals must be a greatly frustrating logical conundrum for Frommer, because even at a “run rate" of one million in a quarter, Apple could only ever hope to sell six million iPhones by the end of 2008, another five quarters later. No wonder he's faced with trying to say that the immediate goal was too low and the longer term one is too high! Frommer needs to stop trying to pound round facts into square holes just so they can be stacked up like bricks the way he would like them to be.Strike Three: The Market Bearing Price Myth.While Frommer and Moritz are enamored with the idea that iPhone prices could only be cut if sales were in crisis, a variety of obvious market realities don't support that simpleton idea. Between now and the end of 2008, Apple has just two holiday seasons. If it wants to dramatically exploit its historical potential for selling roughly three times as many gadgets during the winter season, it makes sense to trade off unit pricing for volume sales, even if it could perhaps sell fewer at a higher price and make more short term profits doing so.Such a strategy isn't unique. Microsoft and Sony currently lose money on their new game consoles in desperate bids to establish their gaming and HD video playing platforms. Even so, this year they both cut prices again to accelerate volume demand. Nintendo purposely aimed low to capture volume sales using a more attractive price point. Given high demand for the Wii and extremely constrained availability, Nintendo "should" seemingly raise its console price and profiteer. It hasn't. While prices are clearly linked to demand, it is a common fallacy to think that the "right price" is always the highest the market will bear. Jobs' 99 cent pricing in the iTunes store is clearly not the top price consumers will pay for downloads. Music labels are fuming that other licensees such as Verizon will collect $2.50 or more for portions of a song sold as a ringtone. Jobs wants media prices low to induce volume sales and attract buyers to the legitimate market for music and movie downloads. Labels and studios want "market pricing," in part so they can jack up the price of popular music to exploit consumers, and in part so they can exploit artists by threatening to release their work at lower tiered prices and signal to the market that their careers are over.[Universal vs Apple in the iTunes Store Contracts][Nintendo Wii vs Microsoft Xbox 360 and Sony PS3]This All Happened Before.Dial back the clock twenty years, and you'll discover that Steve Jobs also fought with Apple CEO John Sculley over the price of the original Macintosh. The desire to use an expensive but pioneering amount of RAM and a futuristic new processor had inflated the price of the Mac, but the design team was still able to deliver it at a fairly attractive price point of $1,995. Scully determined that the Mac would still sell at $2495, delivering high profits to fund splashy advertising. Nothing on the market was really similar to the Mac apart from Apple's $9,995 Lisa. VisiOn for the PC similarly cost nearly $10,000 and did far less. Sculley thought that the market would bear anything Apple might charge. Andy Hertzfeld recalled on Folklore.org that in October 1983, "Steve Jobs strode into the software area one evening, looking angry. 'You're not going to like this,' he told us, 'but Sculley is insisting that we charge $2495 for the Mac instead of $1995, and use the extra money for a bigger marketing budget. He figures that the early adopters will buy it no matter what the price. He also wants more of a cushion to protect Apple II sales. But don't worry, I'm not going to let him get away with it!'"Jobs fought Sculley over the price increase, but Sculley prevailed. Sure enough, Macs did sell well out of the gate to early adopters at the higher price, but sales then began to stall. While Jobs couldn't cut the price for the original Mac to induce wider adoption in the mid 80s, he could choose to cut the price of the iPhone early and use interest in the iPod Touch to ramp users toward the iPhone. That price cut will dramatically boost sales this winter, just as iPod price cuts and feature refreshes do every year.Apple will earn less profit on individual hardware sales of the iPhone, and may even earn slightly less money overall this quarter than it might have selling the iPhone at $599. However, a $399 iPhone will dramatically boost the company's sustainable subscriber revenues and devastatingly cut into stationary rivals like Palm and the Windows Mobile licensees, giving them little opportunity retool and strike back with copycat products. [Price Fight - Folklore.org][Office Wars 3 - How Microsoft Got Its Office Monopoly]Strike Four: The Myth of Unlimited Availability.Another problem with idea that iPhone sales were in crisis--and that a price cut is a conspiracy to hide the truth--is that Apple sold out of iPhones in many of its retail stores throughout the first three weeks on sale.Carl Howe of Blackfriar's Communications tracked iPhone availability every day through July, and then animated the results in a movie that depicts just how constrained iPhone inventories in Apple's retail stores were. So not only did Apple meet its 94 day goal 20 days early, but it did so despite having no or few iPhones to sell in many of its stores during the first 21 days. Price isn't just related to demand, but also to supply.That also demonstrates the fallacy of Scott Moritz' assertion that Apple secretly planned to sell a million iPhones in a day and a half, and was sorely disappointed after failing to do so. How could Apple have planned on selling a million units in one day when it didn't even have a million units on the shelves of its stores during the first month? Remember, Moritz wasn't saying Apple had a delivery problem in getting enough units to stores as Nintendo is experiencing with its constrained supplies of the Wii. Instead, he tried to suggest that interest in the iPhone was far below Apple's estimates, and buyers were leaving it on the shelf like Windows Vista. The result, he claimed, was that "rivals were rejoicing."The only real rejoicing by rivals was that Moritz was volunteering to repeat the talking points handed to him by Verizon shill Roger Entner of IAG Research. Just hours before Apple announced it had sold a million units, Moritz tried to get some traction out of the idea that Apple had dropped the price in desperation to find another half million or so customers over the next three weeks. Apple isn't the typical tech company being run by visionless bean counters. It it were, it would have continued selling $600 iPhones at least through the end of September and then announced that it had sold its million. Apple had to push out new iPods in early September and fit the iPhone into the price range because next month it will be rolling out Leopard and a series of new software updates. Apple feeds the press in small, consistent, and regular feedings so reporters know what to write. If Apple were a big stupid company such as, say HP, it would parade out a mix of dozens of consumer and business products all together in one big event, and nobody would ever hear about any of it. HP did.[Why a million iPhones in 74 days is better than you think- Blackfriars][HP's marketing this week: fashionable but ineffective - Blackfriars][Unraveling Anti-Apple Panic: the iPhone Launch Success] [More on Scott Moritz and the Jim Cramer Misinformation Engine]Strike Five: It's Too Late to Deny the iPhone.The most comical part of Frommers’ analysis is that he’s trying to stuff a cat back into a bag and explain that there was never really any cat, long after everyone in the room heard the purr and pet the thing. Sorry, but the windows of opportunity to doubt the iPhone have long since closed.Real Windows Enthusiasts were aware of the need to deny the iPhone well before its release. They all chimed in with reasons why the iPhone wouldn't work, wouldn't offer what consumers want, and wouldn't sell well, all hoping that their non-stop misinformation campaigns would act as a self-fulfilling prophesy. They failed miserably.John Dvorak began his smear campaign immediately, appearing on CNBC to say that the iPhone was "trending against what people are really liking in phones nowadays, which are those little keypads.? He explained, “The BlackJack, the Samsung, the BlackBerry obviously pushes this kind of thing. The Palm, all of these. I guess some of these stocks went down on the Apple announcement, thinking that Apple could do no wrong. But I think Apple can do wrong, and I think this is it." Reader Jim Barrow sent in a link to a MarketWatch article from March, where Dvorak scribed a rambling diatribe entitled "Apple should pull the plug on the iPhone." He offered no factual basis for worrying that the iPhone might not work out apart from the offhanded comment that "there is no likelihood that Apple can be successful in a business this competitive," words which echoed Dvorak's 1984 observation that "the Macintosh uses an experimental pointing device called a 'mouse.' There is no evidence that people want to use these things."In April, Dvorak inflamed his 'pull the plug' rhetoric further in a TWiT podcast, where he reported to an audience of hundreds of thousands that the iPhone only delivered "40 minutes of talk time" and "the interface fouls up constantly.? Dvorak said that his inside information on the iPhone came from a "guy at Cingular who’s testing the product," adding, "he’s telling me confidentially and I shouldn’t be telling anybody."[John Dvorak: How Wrong Can One Guy Be?][Readers Write: Don't Write About John Dvorak Anymore]It'll Be the Death of You.Dvorak was joined by Rob Enderle, who called the iPhone “damned? and “not a very good phone? at every opportunity in the months before its launch, despite not really knowing anything about it, or even ever offering any rational criticism. Instead, Enderle appealed to fantasy fears of sexual assault, murder, and the violent death of children, all of which he suggested might somehow be related to the iPhone. Unaware that a password protected iPhone--or even a unauthorized unit without a configured service plan--can still be used to make emergency phone calls, Enderle wrote about, "an emergency situation where, say, a woman was being raped and couldn’t call for help because she didn’t remember her iPhone password." As I understand, with a Windows Mobile phone, even if the unit crashed while trying to place the call, at least the victim could use it like a brick as a blunt weapon. Enderle also feared that being unable to take out the battery would somehow making recharging it impossible, resulting an a scenario where one might end up on “the wrong side of town? with a dead iPhone and be murdered because of it. Being on the wrong side of town was apparently the source of most murders prior to the arrival of the cell phone, which somehow made it safe to be in bad neighborhoods. For those who unfazed by the prospect of one's own own grizzly death in relation to the iPhone, Enderle appealed to his readers to please think of the children, particularly the potential for their brutal decapitation in an iPhone-related collision. "If you are buying this phone for a child or another member of your family," Enderle warned, "please emphasize that entering data on this phone while driving is dangerous." In contrast, operating the slide out keyboards of an HTC brick phone, or using both hands to thumb type on a BlackBerry may or may not save your children as they drive off an embankment, but at least you'll know they didn't die at the hands of Apple's "damned" iPhone.[SCO, Linux, and Microsoft in the History of OS: 1970s][Mac OS X vs Linux: Third Party Software and Security]Pure Concentrated Evil with a Multitouch Screen.Brian Lam of Gizmodo published an impassioned plea to boycott the iPhone shortly before its launch, due to the fact that Cingular had purchased the AT&T name, a brand Gizmodo's writer correlated with "monopoly tactics" in the late 70s. Gizmodo hasn't ever called for the boycotting of Verizon Wireless, which is well known for its anti-consumer tactics and which shares just as much blood with the old AT&T as its Baby Bell sibling Cingular, nor has it ever urged the boycott Microsoft products due to "monopoly tactics." Gizmodo also failed to boycott any other GSM phones that are tied to AT&T.Gizmodo's Lam and Enderle then teamed up with Slate's David Sessions in an article purporting to expose Apple's rated battery life for the iPhone. Sessions complained about the attention the iPhone was getting, and tried to dismiss Apple's announcement of a two fold increase in battery life over what was originally advertised. Unbelievably, Sessions and friends could only explain away the iPhone's jump in talk time by crediting its glass screen, saying that "glass transmits light more efficiently than plastic." That and some witchcraft.However, all of these individuals sharply reduced their squirt rate of false information after the iPhone's successful launch. In day and a half, Apple sold 270,000 iPhones compared to the 500,000 Palm OS Treos, 1.03 million RIM BlackBerrys, and 1.51 million Windows Mobile phones that were sold worldwide in the first 90 days of 2007.Apple has since nearly matched highflying RIM in sales during July, despite being limited to a single carrier and only offered for sale in the US. At this point, denying the iPhone is like saying the Earth is flat. It might be fun to do at a Renaissance Faire, but pretending to seriously doubt reality is not a good career move unless you work for the Street--or perhaps Rupert Murdoch, as Dvorak does.[Secret iPhone Details Lost in a Sea of Hype and Hate][iPhone Sales vs Zune, Palm, RIM, Symbian, Windows Mobile]And Now: a Warning.Let it be known that anyone who publishes further misinformation or blows out similar inanity will risk being instantly awarded a Zoon on the spot. No complicated voting, no tedious application process. New Zoon nominees will be rubber stamped with the same effortless fast tracking as the ECMA declaring Microsoft technology as an international standard.In fact, I’m going to totally Zoon Dan Frommer and Scott Moritz right now, as well as John Dvorak, Rob Enderle, Brian Lam, David Sessions, and even Roger Entner. And John Sculley. And while I’m handing out an intellectual property construct that costs me nothing to distribute, I will also award Steve Jobs with a Zoon for the whole two month “just kidding? iPhone pricing situation, although I might take half of it back if I get a $100 coupon that doesn’t force me to spend $500 to actually use it. So let that be a warning to you out there on the Tubes thinking about how to linkbait an article at the expense of the progress of technology. I have a rapid firing gun full of Zoons and I’m not shy about cranking them out. Be sure to post any nominees.What do you think? I really like to hear from readers. Comment in the Forum or email me with your ideas. Like reading RoughlyDrafted? Share articles with your friends, link from your blog, and subscribe to my podcast! Submit to Reddit or Slashdot, or consider making a small donation supporting this site. Thanks!
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50 Killer Mac Apps For Under $50
Who doesn't need more for less? We present 50 Mac|Life-approved applications--many free, all under $50--that'll guarantee you get the most from your Mac without traumatizing your wallet.The Internet is full of noise--countless different applications for every occasion, with reviews everywhere that love and hate them at the same time. While that’s hardly news, it’s still a hassle that isn’t going away. Say you picked up a spiffy new MacBook Pro, and it’s time to kit it out with the leanest, meanest software. After all, Macs have that rich history of garage-roots development, of a few folks in a basement brewing up quality software that smokes the big-name stuff. So you’ve got a feeling there’s great, affordable software just waiting for you to find it--and you’re right. But how do you sift through the zillion calendar apps and jillion media players to find the gems worthy of your hard drive space? And more importantly, your time and money?We’re here to help with a compendium of essential software. It didn’t come easily--we debated, argued, haggled, and even pleaded to secure a prized position on this list for our favorite, most useful applications. But by limiting the software we’re highlighting to 50, we’ve guaranteed you the best of the best--no Internet spew here. And by capping the cost of the software we’ve selected at $50, we’ve made sure you can reasonably buy what you need. You may love your Mac already, but you’re not gonna believe how much it can do once you load up even a few of these choice applications. EntertainmentSure, iPods and iTunes make music and movies easier to enjoy, but they're not without headaches of their own. That's where these awesome apps come in. They take the pain out of kicking back with your favorite flicks and tunes.Simplify MediaShare & stream your iTunes library over the Internet.The iPod has made several portable music formats obsolete, and we sure don’t miss schlepping around fragile cassette tapes or heavy wallets full of CDs. But even the mighty iPod has its limits--namely capacity. That’s where Simplify Media (free, Simplify Media, simplifymedia.com) comes in handy. It guarantees that the size of your music library doesn’t matter by letting you stream music between computers via the Internet. Yup, this app will play your entire library on any computer (as long as the one that has your library is powered up and online).Stream your tunes from home or the next cube.Once installed, a simple login fires up your music. Simplify Media works with iTunes just like the built-in LAN sharing does, and the remote libraries appear under Shared, alongside any local shared libraries. Even better, you can add up to 30 friends’ shared libraries, and an iPhone app ($5.99) lets you pipe your music to your iPhone or iPod touch.SuperSyncSuperSync keeps multiple iTunes collections in sync.Speaking of iTunes libraries--streaming is great, but what if you want to sync libraries across multiple Macs? SuperSync ($22, SuperSync, supersync.com) makes it so. Sure, Apple introduced limited music-transfer capabilities with Home Sharing in iTunes 9, but that feature requires computers to be on the same local network. SuperSync one-ups iTunes by syncing iTunes libraries over the Internet. It’s perfect for anyone who uses multiple Macs, and SuperSync also has a bunch of other tricked-out features. In deference to the record companies, Apple makes transferring music from an iPod to a computer unnecessarily difficult. SuperSync handles the task with ease, making it a bacon-saver when the hard drive in your Mac kicks the bucket. SuperSync will even allow you to sync libraries cross-platform.SuperSync's color-coded interface helps you synchronize your iTunes tracks across multiple Macs.VLC Media PlayerNever worry about video file types again. If most of your Mac video-watching happens in the form of DVDs or QuickTime movies, you probably don’t think too much about player software. But move beyond the most basic video types, and you’re asking for trouble. With the myriad formats, containers, and encoding parameters available, the simple act of playing back a cat video can become incredibly frustrating. VLC Media Player (free, VideoLAN, www.videolan.org) is like a Swiss Army knife for digital media. It’s open source and cross-platform, and the app will play back practically any audio or video file you throw at it. VLC also handles file conversions with ease, so you can use it to convert audio and video for use online or on portable devices.It plays, it converts, it makes toast (okay, maybe not that last one.)RipItBackup & convert DVDs with RipIt.There are plenty of legit reasons to rip a DVD. Backup copies of kids’ movies for the minivan, watching Glee on your iPod touch while you’re on the bus, or even just saving battery power on your laptop (playing back a file from a hard drive is much more efficient than spinning a DVD).RipIt's simple interface makes ripping DVDs seamless and easy.Once the domain of übernerds, DVD ripping is a one-click affair thanks to RipIt ($19.95, The Little App Factory, ripitapp.com). And since it makes full rips, all of the menus, bonus features, and subtitles remain intact. You can play back the resulting files with DVD Player on your Mac or use a freeware tool like Handbrake to convert your rips into iPod-friendly formats. Delicious LibraryWe love the iTunes Store, but we still end up accumulating books, DVDs, console games, and, yes, even CDs. Delicious Library ($40, Delicious Monster Software, www.delicious-monster.com) helps catalog your collections by--get this--taking snaps of UPCs via your webcam and then automatically organizing your meatspace content onto virtual shelves for easy sorting and browsing. You can track loans to friends, post items for sale on Amazon, and publish Web catalogs formatted for your iPhone. That way, you can avoid buying another copy of John Hodgman’s More Information Than You Require. Connect360We’re Apple-faithful, but that doesn’t stop us from engaging in a little Modern Warfare 2 on our Xbox 360. And since the 360 is much more than a simple gaming machine, we also use it to stream iTunes tracks to our entertainment center and view pictures from our iPhoto library on our HDTV--with the help of Connect360 ($20, Nullriver Inc, www.nullriver.com), that is. It works over wired or wireless networks, and it even streams H.264 video straight from our MacBook. Sweet! PeelPack rats, beware: Peel ($14.95, Hjalti Jakobsson, www.getpeel.com) can get really overwhelming, really fast. But if you’re an avid follower of music blogs, Peel can automagically grab new tracks as they’re posted. So forget all that pesky right-clicking and manually adding to iTunes. Just feed Peel a list of your favorite music blogs, and then kick back as tons of new, free tunes get downloaded straight to your Mac. You may never have to buy (or pirate) music again. CoverScoutCover Flow is one of those features that looks great in a demo but doesn’t quite translate at home. iTunes can attempt to find the album art that makes Cover Flow actually useful, but it’s limited in scope and can’t make fuzzy matches. CoverScout ($39.95, equinox USA, www.equinux.com) scours the Internet to find your missing album art and presents you with multiple options to let you choose the best images. Don’t Cover Flow without it. TuneUpFor all of those untitled and mistitled tracks in your music library, there’s TuneUp ($19.95/one year, $29.95/lifetime; TuneUp Media; www.tuneupmedia.com). Like CoverScout, TuneUp can find and download missing album art, but its best trick is cleaning up your ID3 tags--the artist, title, and album info displayed in iTunes. A quick search is all it takes to clear up all those Track 1s and Unknown Artists in your library. It sure beats cleaning up metadata by hand.Next Page: Productivity Apps >> ProductivityTakin' care of business, every day. Takin' care of business, every way. Workin' on a Mac, it's all right. This productivity software is workin' overtime.WriteRoomBlocks distractions so you can write in peace.Proving the tired adage that “less is more,” WriteRoom ($24.95, Hog Bay Software, www.hogbaysoftware.com) is a light text editor with a full-screen mode. Start a new document, and everything else fades away--your Dock, your menubar, and other windows on your Desktop. You’re left with a black screen and friendly green text for a clutter- and distraction-free experience. The Escape key toggles between full-screen mode and windowed mode, which resembles TextEdit with a live word count.WriteRoom can save your work as plain text, rich text, or Microsoft Word’s .doc format. The preferences offer tons of customization: auto-save, character counts, the appearance of text in full-screen mode, and more. But WriteRoom’s real magic is how it gets out of your way and lets you focus on what you’re doing.BusyCalOne calendar application to rule them all.BusyCal ($40, BusyMac, www.busymac.com) is iCal on steroids. It dances circles around iCal, chanting, “Everything you can do, I can do better.” And it’s right. Sharing is a snap: You can set up two-way syncing with your Google Calendar or with other BusyCal calendars on your local network or the wide-open Internet. But even aside from sharing, BusyCal offers tons of calendaring bells and whistles: customizable views, sticky notes, weather forecasts, moon phases, graphical icons, a to-do list, notes, tags, and much more. And since it uses the Sync Services built into Mac OS X, your BusyCal calendars can sync with MobileMe and your iPhone. You can even switch back to iCal anytime without losing any of the events or to-dos you entered in BusyCal.So what if iCal is free? BusyCal is better.ThingsFlexible to-do list syncs with iCal and the iPhone. For busy people like us, a good to-do list is beyond essential. But some that we’ve tried are so complicated that just managing your tasks becomes a chore in itself. So the light, easy-to-understand Things ($49.95, Cultured Code, www.culturedcode.com) is a breath of fresh air. You can go the full Getting Things Done route, adding contexts, priority levels, a tickler file, and so on. Or you can keep it simple, with one-off and repeating tasks and multistep projects. iCal syncing can get your deadlines on your calendar, and Things on the Mac can sync wirelessly with Things on the iPhone ($9.99 in the App Store). We’ve tried multiple task-managment systems, from Web-based ToodleDo to iPhone apps like ToDo to Mail’s built-in To-Do list to good old paper and pencil. Things is the cream of the crop for its good looks, quick entry, and easy syncing.Things uses tags to organize your projects in a million ways--or you can ignore the tags altogether and just work.Express ScribeTranscriptions made easy... well, easier.Transcribing an interview, lecture, or other recording is hard enough, just with the listening and typing. Toss in the extra arm movement as you frantically click from your text editor to your audio-playback application every time you want to pause the recording or rewind a few seconds, and your transcribing job just got tougher and more frustrating. Express Scribe (free, NCH Software, www.nch.com.au/scribe) lets you set system-wide hotkeys for audio playback so you can stay in your text editor, fully control the audio, and never need to reach for your mouse.Express Scribe can also slow down your audio without changing the pitch, supports video, works with lots of file types, loads recordings from analog or digital audio recorders, and more. Plus, it’s completely free. Wahoo!NoteBookThe Mac is silly with note-taking applications (Evernote, Yojimbo, ShoveBox, MacJournal…shall we go on?), but Circus Ponies’ NoteBook ($49.95, Circus Ponies, www.circusponies.com) is a standout. If you subscribe to “a place for everything, and everything in its place,” NoteBook can be the place for notes, Web clippings, bookmarks, documents, voice memos, photos, and more. It struts its flexibility with ready-made templates for planning a trip, writing a research paper, collecting recipes, keeping a journal, and so on, while its fun spiral-notebook interface is a nice touch. TextExpanderA thousand monkeys at a thousand typewriters could produce Hamlet a lot faster if they knew how to use TextExpander ($29.95, SmileOnMyMac, www.smileonmymac.com). This wonder app installs as a System Preferences pane and lets you define shortcuts for your most commonly used words and phrases. Abbreviate long URLs, your email signoff, even your own photo or scanned signature file. Then as you type those shortcuts, they’re automagically expanded to what you really wanted to say. Brilliant. iFinance 3Sure, Quicken is popular and Mint.com is free, but iFinance 3 ($29, Synium Software GmbH, www.synium.de) was built from the ground up just for Macs, and it shows. The intuitive interface makes it a cinch--dare we say a pleasure?--to track your accounts, keep an eye on your cash flow, set up a budget, and graph your expenses. It can also import from CSV and QIF files for easier data entry. Plus, a companion iPhone app lets you enter transactions on the go.FlexTimeThis charming timer app ($18.95, Red Sweater Software, www.red-sweater.com) lets you set up multistep routines that run once or repeat ad nauseam. Each step can be marked by a sound, spoken text, or even running a script. Once your routine is perfect, you can export the audio to iTunes--great for following a recipe’s carefully timed steps or taking your favorite yoga routines on the road. DEVONthink PersonalAnother great catch-all for storing, sorting, organizing, and searching information, DEVONthink ($49.95, DEVONtechnologies, www.devon-technologies.com) can take almost anything you can throw at it. Documents, PDFs, photos, multimedia files, bookmarks, webpages, iChat logs--all of those can be imported, sorted, and read right in DEVONthink. Searching is easy, and you can cobble together a brand-new document from items in your DEVONthink database and export it to your favorite text editor for printing or as HTML for posting. Next Page: Internet Apps >> InternetIt's a wild place, that Interweb, so there's nothing like a few primo apps to tame everything from blogging to FTPs to Twitter and Flash banners.TransmitTraveling the two-lane FTP highway.FTP has been around forever. Social networking and cloud computing may come and go, but FTP is in it for the long hall. Fortunately, there are a wealth of great FTP clients for the Mac, and the best of those is Transmit ($29.95, Panic, www.panic.com/transmit). The client utilizes a split directory window that shows the path on your computer and the path on the FTP site. With in-app search and the ability to sync folders on your Mac and on the FTP site, Transmit helps alleviate the search and drag-and-drop blues of other clients. The sync feature is especially helpful for Web developers and designers. You can even create desktop droplets for quick uploads to heavily used sites.Two-window FTP FTW.Mac-JournalWeb-based apps suck.Blogging about your life is a faux pas. Blogging about anything else that people actually care about is the proper way of utilizing of the blogging systems available out there. The ongoing problem is that most blogging platforms are bit of a pain to use because they’re Web-based. Plus, if you’re somewhere without Internet access, you can’t start laying out your blog posts for your site. MacJournal ($39.95, Mariner Software, www.marinersoftware.com) solves that problem with an easy-to-use multiplatform blogging client. Lay out your articles offline with images, video, and audio, then save them for later posting. The app includes the ability to both write in full-screen mode so you won’t be interrupted by your Twitter friends, and to record an audio podcast in the client.Create blog posts quickly and without browser issues.TweetieMulti-account Twitter action.After wowing the world with its iPhone Twitter app, atebits decided to release a desktop version of Tweetie ($19.95, atebits, www.atebits.com/tweetie-mac/). The app can handle multiple Twitter accounts, compose tweets in a separate window, allow you to change the account you’re sending a tweet from on the fly, and let you drag and drop pics and videos right into the Compose window. Don’t have the perfect media on your Mac for a tweet? Record a video or shoot a pic from your iSight camera directly in Tweetie. And since Twitter conversations can be difficult to follow, Tweetie displays the conversation you’re having in a timeline if you just double-click one of the pertinent tweets. The Tweetie bookmarklet in Safari also allows you to share links quickly from your browser.Have an actual conversation on Twitter with Tweetie.DropboxStop, drop, and roll on home.Transferring large files can be a huge pain. Where the hell did you leave that thumb drive? External hard drives leave an unsightly bulge in your pocket, and all those cables are always getting tangled in your shoes. That’s a safety hazard, son. Dropbox (2GB storage for free, 50GB for $9.99/month; Dropbox; www.dropbox.com) is a cloud-based storage drive that you can access from any computer or iPhone. Just pop files into the Dropbox folder on your Mac, and it automatically syncs up with the online disk (which you can view on Dropbox’s website) and with any other machines you have the application installed on. You can even share folders and files with other Dropbox users. If the free 2GB box doesn’t cut it, you can upgrade to 50GB for $10 a month.Access your files from anywhere in the universe (with an Internet connection).LogMeInIf you need to remotely access a Mac or (gasp) a PC with Windows on it, LogMeIn (free, LogMeIn, logmein.com) allows you to peer into your remote computer from anywhere. You can launch apps, move files, and adjust your preferences via a Web-based interface, as if you were sitting at that computer. For $29.99, you can get your iPhone in on the action too. TweetDeckIf you’re a Twitter power user, TweetDeck (free, TweetDeck, www.tweetdeck.com) should be in your arsenal of Twitter apps. The interface is a series of columns that displays info like your friends’ feeds, saved searches, mentions, direct mentions, and Facebook updates. You can also keep up with trending topics with just a quick glance. If there’s something you need to track on Twitter, TweetDeck can make a column for it. VuzeAllegedly, BitTorrent steals medication from senior citizens, but isn’t it time to forget about all the evil things it supposedly does? Instead, focus on the greatness of Vuze (free, Vuze, www.vuze.com) and its ability to download legally available video files. After you’ve done the downloading, Vuze can convert your files for use on the iPhone, Apple TV, iPod, Xbox 360, TiVo, and PlayStation 3. It’ll even stream videos to your set-top boxes. Nice! BannerZestCreating Flash banners is difficult, especially when you don’t know or own Flash. BannerZest ($49, Aquafadas, www.aquafadas.com) takes the pain out the process and gives you a simple way to create quick, beautiful Flash banners. From a standard gallery to an interactive experience, BannerZest comes with a collection of themes for different uses, and it uploads your banners to your FTP or MobileMe disk. FileChuteSending large files over email can result in the dreaded bounced email. FileChute ($17.95, Yellow Mug Software, www.yellowmug.com) works with your MobileMe-, FTP-, or WebDAV-accessible Web server. Drop your file into the app, and it uploads it to your online server of choice and then creates a URL to add to your email. If you drop more than one file, you get an archive uploaded to your server. Adios, bounced emails! Next Page: Content Creation Apps >>Content CreationSure, Adobe's stuff is the gold standard, but you don't want to have to count on a good night at the poker table to pay for it, right? Cue these killer applications, which let you effectively draw, edit photos, render, animate, and even scratch for a very fair price.djay 3Budgeted beats to grow on.You want to spin phat beats, but your slim bank keeps you from purchasing the high-end DJ equipment and software. That’s okay, young DJ-in-training, djay 3 ($49.95, algoriddim, www.djay-software.com) gives you everything you need to rock the house without losing your shirt. This surprisingly robust audio-mixing software integrates with your iTunes library and puts all the usual mixing and scratching right on your desktop. The application supports multitouch trackpad scratching and fading between tracks, so it’s especially perfect for the last few generations of MacBooks. And as you grow as a DJ, the application will grow with you thanks to its support for MIDI controllers. That means when you get the cash for those fancy digital mixers and turntables, djay will be right there with you.With your iTunes catalog at your fingertips, you'll find some pretty interesting mashups.AudacityFree audio editor extraordinaire.Audio editing seems simple at first. Then suddenly, you’re knee-deep in samples, frequencies, and bitrates. Sound editing really is part science, part black magic, so we’re thankful that Audacity (free, SourceForge, audacity.sourceforge.net) removes one of the biggest obstacles: choosing a quality application and figuring out how you’re going to pay for it. Audacity is both terrific and free, which is kinda hard to beat. An audio-recording and -editing application, it captures up to 16 channels at once from multiple sources, features noise removal, includes a metadata editor, and supplies unlimited undos. It can handle most of the audio files out there, and it’ll work with multiple files types in the same project. Audacity is also is cross-platform, so if you’re a recent Mac arrival, you may already know about its awesome power.So many features, you'll second-guess the price: free.SketchUp3D for you and me.Maya, 3D Studio Max, and SketchUp--all of these will let you create magical 3D worlds. Only one will do it for free, and you probably nailed it in one--it’s Google’s SketchUp software (free, Google, sketchup.google.com) that brings the world of 3D to the average Joe. You can create your own items or utilize Google’s 3D warehouse to find models created by other SketchUp users. With all those models at your fingertips, you can create floor plans for your home, build a level for your favorite FPS, or export the files to animation software or Photoshop. The application includes tutorials that’ll get you up and rendering in no time at all… so now nothing stands between you and virtual-world domination!Build a virtual man-cave for you and your stuff.RingerWham-bam ringtone, ma'am.We get tons of people asking us, “How do I make a ringtone for my iPhone?” Until recently, we told them to launch GarageBand, cut a ringtone, and export it to iTunes. Now we recommend Ringer ($15, Pixel Research Labs, pixelresearchlabs.com/ringer) as the quickest and easiest way to create ringtones from your favorite songs and audio files. Ringer has access to your entire iTunes library and works with MP3, AAC, MOV, MP4, M4V, and QuickTime files. Yeah, you can make a ringtone from a video file. A super-simple editor with waveform information makes it a snap to select the perfect section of audio, and you can fade in and out of the file and preview the ringtone before cropping it and sending it to iTunes for a sync with your iPhone. AcornUsing an image editor doesn’t have to cost you hundreds of dollars. In fact, with Acorn ($49.95, Flying Meat, www.flyingmeat.com/acorn), you’ll get features like layers, AppleScript support, 64-bit support, drawing, and filters in a package that’s easy on the wallet. This easy-to-use software strips away most of the features most people don’t use and gives you a clean image-editing tool. InkscapeWhile raster-based image editors like Photoshop are great at pushing pixels around, the vector-based drawing programs are where all the real action happens. The open-source application Inkscape (free, Inkscape, www.inkscape.org) is similar to powerhouses like Illustrator and CorelDraw, but with one important difference--it’s free. The app utilizes the Scalable Vector Graphics (SVG) file format and includes a nice 3D drawing tool that allows you to set your vanishing points. ScreenflickWith Snow Leopard, Apple introduced screen-capture into QuickTime, and it’s a nice feature if you’re looking to make a quick full-screen screencast. But if you want something that has features like fixed location output at up to 60 fps, Screenflick ($25, Araelium Group, www.araelium.com/screenflick) is an application you can get behind. It’ll highlight mouse clicks and keyboard events, adding a nifty visual cue into your screencasts that highlights what you’re doing. BracketeerWhile your eye can take in an amazing range of light to dark, your camera cannot. In order to help create images that include a tonal range that the average camera can’t capture, HDR applications and plug-ins have appeared on the market. These applications take a series of images that have been bracketed from dark to light and combine them to include the darkest darks to the lightest lights in one HDR image. Bracketeer ($29.95, Pangea Software, pangeasoft.net/pano/bracketeer) is a standalone application that does just that. Adjust the saturation, the contrast, and exposure from within the application. The application will even auto-align your images in case you got the hiccups while taking your pics. iStopMotion 2 HomeMost animators’ first animation was probably a stop-motion piece with Star Wars action figures. And whether those childhood lightsaber battles have you hoping to become the next Brad Bird, or you just love the look of stop-motion, iStopMotion ($49, Boinx Software, www.boinx.com/istopmotion/overview) is a quick, easy way to create simple stop-motion animations. Use your iSight or connect a camera to your Mac and start making your own Wallace and Gromit short. You’ll feel the Force, Lu… sorry. Next Page: Utility Apps >>UtilitiesSlick utilities can add crucial functionality to your Mac, so we've selected the best options for everything from secure password managers and system-troubleshooting tools to an app that will let you play Windows games on your Mac... without Windows!AppZapperCompletely trash applications.Unlike using Windoze, installing and uninstalling apps on a Mac is painless. Drag an application’s icon into your Applications folder, and you’re pretty much good to go. Deleting them is just as simple--just grab them and toss them into the Trash. But if you’ve ever dug around Library or System folders on your Mac, you’ll see that even after you Trash an app, many of them leave crumbs in different parts of your machine. For cleaning up those last little bits, AppZapper ($12.95, Austin Sarner and Brian Ball, www.appzapper.com) is a must-have utility that’s also great for troubleshooting problems. Wiping out all of an application’s preferences and other random files can often turn a troublesome app into a perfectly behaved one after a clean reinstall. Completely remove unwanted applications with a simple drag and drop.HazelClean and organize your Mac--automatically.Hazel ($21.95, NoodleSoft, www.noodlesoft.com) is kind of like Rosie the Robot for your Mac. Or it’s like OS X’s Folder Actions… if they were super-awesome, easy to use, and perfect for helping you keep your Mac’s folders and files organized. Hazel installs as a pane in System Preferences, monitoring locations that you choose, and performs actions on files based on your criteria. By creating simple rules, you can delegate repetitive and annoying file-management tasks to Hazel--for example, automatically add downloaded MP3s to iTunes or move DMGs to an archive on an external drive. Hazel can delve deep into metadata for complex actions like copying images into subfolders by ISO settings or reorganizing music files according to bitrate. You can even set up simple rules for auto-deleting items that have been in the Trash longer than a certain amount of time.1PasswordKeep all your confidential info on lockdown.You’ve heard it before--secure, unique passwords are the way to go. Yet there you are, still using the same password for everything from your maclife.com login to your Gmail and your bank account. Do we even have to tell you again why that’s a colossally bad idea? 1Password ($39.95, Agile Web Solutions, agilewebsolutions.com) can help clean up your online act, creating and managing complex passwords for every online account and then logging you in with a keyboard shortcut. The app can also be used to securely store personal information like credit card numbers and addresses for use in Web forms. And since all of your passwords are unique, you won’t have to worry about your banking info being compromised because of a data breach at that sketchy Russian website you used to download MP3s for a penny.1Password securely stores Web passwords, logins, software licenses, and other important information.iPhone ExplorerStore & browse files on your iPhone.Breaking tradition with the iPods of yore, Apple doesn’t provide the ability to use your iPhone as a USB drive. iPhone Explorer (free, myPod Apps, www.mypodapps.com) is a simple app that will let you drag and drop files onto your phone for easy portability. The app itself is lightweight, and all it takes is a USB cable to view your iPhone’s folder structure. In addition to storing files, iPhone Explorer can be used to restore iTunes tracks from your iPod to a Mac or to rescue photographs from the depths of your iPhone’s memory. No jailbreaking is required, but more adventurous users with jailbroken phones can also recover contacts, messages, email, and other data. It’s a powerful tool, but it’s simple to use for the careful novice.AppleJackAppleJack (free, The Apotek, applejack.sourceforge.net) is one of those things you’ll install once and never think about again—if everything goes right. But if, god forbid, your Mac starts acting weird one day--or stops acting, period--it’ll be AppleJack to the rescue. It’s a command-line utility for diagnosing and repairing problems with your computer. Use the menu-driven system to repair permissions, validate preferences files, and remove screwy cache files.SuperDuperWith Time Machine built into OS X, there’s really no good reason not to have an automatic backup. But Time Machine has its limits--a big one being the lack of bootable backups. SuperDuper ($27.95, Shirt Pocket, www.shirt-pocket.com) easily handles creating and updating bootable clones of your Mac’s hard drive so you’ll be ready to go when disaster strikes. Just plug in your clone, restart, and you’re up and running again. CrossOver GamesPC fanboys like to slag the Mac for having fewer games, but with CrossOver Games ($39.95, CodeWeavers, www.codeweavers.com), Mac users--and Linux fans too--can easily play games coded for Windows machines. The list of officially supported games is hundreds deep, and since CrossOver is based on Wine, you don’t even need a copy of Windows just to play Team Fortress 2. Clean My MacHard drives are never big enough. Whether you have a MacBook Air or a Mac Pro, there always comes a point when there’s just not enough space on your internal disks. Clean My Mac ($29.95, MacPaw, macpaw.com) can help with that problem, scouring your Mac’s drive and tossing out all sorts of gunk you don’t need. Use it to toss unneeded language files, scrub extraneous code from universal binaries, and thoroughly clean up after deleted applications. rooSwitchOS X’s Fast User Switching is handy for juggling multiple user accounts and their corresponding settings, but rooSwitch ($19, Rocket, rooswitch.com) allows you to maintain different settings on a per-application basis. Use it to manage Home and Work browser profiles, for example, or to have different profiles in your word processor for writing or editing documents. rooSwitch works with nearly any application, and it supports Automator and AppleScript for the ultimate in customizability. Next Page: Wild Card Apps & Staff Picks >> Wild CardsNot all Mac apps fall into your neat little categories. These five break the mold and completely deserve a place on your hard drive.BricksmithVirtual bricks you can't lose or step on? Sold!Legos are the official plastic brick of Mac|Life--we’ve had many discussions about the empires we built in our childhood bedrooms and how much we miss “playing Legos” as the soulless adults we are today. Bricksmith (free, donations accepted; Allen Smith; bricksmith.sourceforge.net) lets you recapture the magic in a highly geeky way. It’s a 3D Lego-model creator, offering drag-and-drop construction using thousands of parts in every color of Lego’s rainbow. Tutorials and the one finished model that’s included show you the ropes, and once you’re done with your virtual creation, you can export step-by-step instructions to build it for real. There’s even a mini figure generator where you can design and outfit a matching Lego man and insert him into your model. This software couldn’t be cooler.We can't believe an application this sweet is donationware.CameraBag DesktopGive your photos a new identity or some old-timey charm.We named the iPhone version of CameraBag one of our “101 Essential Apps for 2008,” and now the same fun can be had on your Mac, thanks to CameraBag Desktop ($19, Nevercenter, www.nevercenter.com). You drag in a digital image, and the app re-creates the look of a real film photograph--choose from Helga, Lolo, Mono, 1962, 1974, Instant, Magazine, Cinema, or Colorcross.For more variations, click the Reprocess button, and all the options will change their look and coloring just slightly. Or check the Multi-filter box and experiment with adding multiple filters to a single photo. Of course, you can export your altered images back to your hard drive without affecting the original file. The novelty of taking an everyday digital snapshot and making it look like a Polaroid image or washed-out 1974 photograph never gets old.Your digital photos, plus extra personality.SousChefRecipe database + shopping list + cooking assistant = one kitchen lifesaver.SousChef ($30, Acacia Tree Software, acaciatreesoftware.com) edges out MacGourmet ($49.95, www.marinersoftware.com) in the cooking-assistant category for its cloud database of recipes. Every time a SousChef user enters a recipe (133,000-plus at press time), it’s synced to the cloud, and you can search those and import them into your own library. You can also opt out of sharing your own recipes so Aunt Erma’s secret matzo ball soup stays in the family.Once a recipe’s in your library, you can edit, print, email, or blog it--or even add its ingredients to your grocery list. Click the Cook button for a full-screen view of the instructions that you can read from across the room, keeping your Mac out of the splatter zone. The Mac’s built-in speech recognition lets you advance the recipe’s steps with your own voice, or you can use the Apple Remote or a Keyspan Front Row Remote.TemporisAttractive, drag-and-drop timelines make it easy to "show, don't tell."Everyone loves a good infographic, or at least geeky types like us do. (And the geeks shall inherit the earth, don’cha know?) Temporis ($24.99, Bartas Technologies, www.bartastechnologies.com) makes it easy to create neat-looking timelines on your Mac, which you can then print or export as PDF or TIFF files that are ready for importing into your presentation software, word processor, or page-layout app.Adding new events is just a Command-click away, and it’s a snap to drag the start and end dates around on the timeline. The Arrange button will automatically stagger your timeline’s events into the most logical and easy-to-read order, and the Inspector lets you tweak fonts, colors, titles, labels, and your timeline’s span and intervals. You can even export the event data separately as an XML or CSV file.Manga Studio Debut 4Create your own comics and manga, and even manga-fy your photos.Manga Studio Debut 4 ($49.99, Smith Micro, my.smithmicro.com) is a must-have for fans of Japanese manga or anyone who wants to make their own comic books. Its ingenious Beginner’s Assistant groups together the tools by processes so you can intuitively wind your way through a typical manga workflow: sketch, panel, draw, tone, and add character dialogue.You can scan or draw your own art (graphics tablets supported, natch), play with the included samples, purchase manga content from www.contentparadise.com, or even import your own digital photos and watch Manga Studio make them all comicky-looking. Draw speed lines, add dialogue bubbles, move your pages around, and then print or export your finished comic book. Manga Studio Debut 4 is the younger brother to professional-level Manga Studio EX 4 ($299.99), but Debut has plenty of advanced features too, including layers, templates, customizable patterns, and more.Mac|Life Staff PicksBass TunerI’m a beginning bass player--like, very beginning. So it’s a huge help that I don’t have to worry about staying in key. This terrific, simple, and streamlined little app ($9, www.rustykat.com) lets me quickly get in tune in front of my MacBook using the built-in mic. With that necessity sorted, I can fire up some tracks and tablature and focus on struggling to play along.MultiwiniaMultiwinia ($19, www.ambrosiasw.com) offers crazy replayability. You devise a strategy for your stick-figure army, then watch them take on up to four other teams in six game types on 40 vector-graphic maps. Online multiplayer against Mac and Windows players works flawlessly and keeps me coming back for more. No Napoleon complex necessary. MetaXIf you need to tag a large amount of MP4 files, you could use iTunes’ painfully slow process. Instead I found MetaX (free, www.kerstetter.net) for all my tagging needs. The app will search the IMDB catalog and plug the information into the appropriate fields, then share that info via tagChimp. You can even scan DVD barcodes via iSight! BeanFor a word dork like me, word processors are a big deal. Bean (free, www.bean-osx.com) is a lightweight, open-source word processor. It’s missing many of the blinky lights and thingamajigs of the big boys, and that’s exactly the point. Fewer distractions equals better writing, faster. And for anyone who needs to hit a certain length, the live word count rocks. FluidI often find that Firefox has the tendency to crash when I have too many Web applications running. But Fluid (free, fluidapp.com) lets me create a site-specific browser out of my most essential websites, like Google Docs and Flickr. Simply plug in the URL, and voilà! You have a separate application running that won’t go down if something else does. Next Page: More Gaming Bang for 50 Bucks >> More Bang for 50 BucksSome of the Mac's best games are also its cheapest? Sweet!Fifty bones won’t buy you even one new Xbox 360 or PS3 game, but on the Mac, you can snap up a stack of premier games for less than that. Or at least, that was our theory when we gave Florence, our new associate online editor, 50 whole American dollars and asked her to max out her Mac with the best gaming that short stack of money could buy. Man, did she score--check out the results of her diligent “research.”Plants Vs. Zombies$16, amazon.comLine up perilous peashooters and sun-soaking sunflowers against an abominable horde of zombies in Plants vs. Zombies.This animated tower-defense favorite pits you against a horde of zombies with one thing on their (decaying) minds--invading your home for brains! Pit your arsenal of zombie-fighting plants, each with their own spectacular organic weaponry, against 26 zombies and 50 levels of adventure. Fair warning: Once you start playing this excellent game, it’s incredibly hard to stop. World of Goo$10, amazon.comStack up adorable globs of goo to build structures and watch them band together as you help transport them across various levels.World of Goo is another addictive and totally adorable puzzle game. Created around the idea that circular goo balls make adequate building materials (naturally), the game has you solving puzzles by dragging and dropping goo to create all kinds of crazy structures that enable you to transport your goo across the level. The oh-so-cute googly-eyed blobs pack the game with charm, and you can also connect online and play against other Goo architects around the world.Braid$15, playgreenhouse.comBraid's aesthetically appealing backdrop and profound storyline will keep you engrossed until the very end.Some games defy description, and Braid might be easy to pass over because it appears to be just a mix of platforming and time control set against a gorgeous backdrop. But it subverts and transcends those two well-worn clichés with brilliant design and an absorbing story that packs a twist that you’ll never see coming. Watch the YouTube videos if you need help solving its puzzles, but just make sure you see this masterpiece through to the end.Balcassa$8, openplanetsoftware.comBalcassa has a mountain of exciting brainteasers for the puzzle fiend.Balcassa feeds off those nightmares you still have about attempting to master that archaic, rainbow-colored Rubik’s cube. And while most of you probably never cracked the damn thing (we didn’t!), Balcassa gives you a second chance. The objective of the game is to slide the cubes into a specific sequence, pattern, or orientation. It may sound like a simple task, but much like fiddling with a Rubik’s cube, figuring it all out is the real reward.Freeware FunIf you’re interested in first-person shooters and MMORPGs, Quake Live and Second Life can give you hours of entertainment at our favorite price: $0.00. Both games perform smoothly on Mac OS 10.4 or later. Quake Live doesn’t require beefy hardware because it runs through your Web browser. But that doesn’t stop it from delivering all the fast-paced action of the classic first-person shooter. Second Life, while not as packed with storyline as World of Warcraft, offers a similar massively multiplayer world where you can meet people, customize your character’s look, and participate in a virtual world that’s just like our own. You don’t even have to watch the clock to make sure you’re on time for a player-versus-player raid!You don't need fancy computer hardware to frag your way through this beloved shooter.Vital Statistics on Our 50 Killer AppsTotal cost if you bought all 50 apps: $1219.83Number of apps that are free: 13Apps that have an iPhone counterpart: 15Whaddaya waiting for? (apps that have a free demo): 39Number of countries these apps were born in: 7Apps named "iSomething": shockingly... just 3!Apps that require Snow Leopard: 1Apps that require Leopard: 14Apps that promise "iLife integration!": 9
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EU Urged to Open Microsoft's Monopoly Billions to Free Market Competition
Daniel Eran DilgerAfter the European Court of First Instance upheld its antitrust decision against Microsoft, professional Windows Enthusiasts all worked to spin Microsoft's setback as bad news for Apple. They hoped and prayed Apple might be similarly restricted by the EU courts--but immediately, rather than after ten years of deliberation as was the case with Microsoft.In reality, Apple would like nothing better than for the EU courts to reign in upon the music labels that carve up Europe into a complex landscape of territorial licensing and pricing, and force them to allow Apple to offer their music to Europeans from a single iTunes Store at a uniform price. [Thoughts on Music - Apple]Distracted by their malice toward Apple, these wags were likely unprepared to hear the latest recommendation from the Globalisation Institute in Brussels, which submitted a report to the European Commission outlining why the "bundling of Microsoft Windows with computers is not in the public interest, and prevents meaningful competition in the operating system market."[What's next for EU competition policy?][Unbundling Microsoft Windows (PDF) - Globalisation Institute]Tear Down This Wall.While Windows Enthusiasts love to suggest that Apple should be either forced to license Microsoft's Windows Media DRM on the iPod, or at least should be forced to license its own FairPlay DRM to other online music stores and media players, the Globalisation Institute's report turned that idea on its head by noting that PC makers shouldn't be forced to license Windows for users who don't want it.Alex Singleton, the author of the report, noted that "cheaper competitors are unable to benefit from their lower cost because consumers have already been forced to buy Windows. Windows’ dominant position both has slowed technical improvements and prevented new alternatives entering from the marketplace."Neelie Kroes, the European Commissioner for Competition, earlier observed that "innovation in high technology markets" has come "largely in areas that Microsoft does not control.? The Commission's existing case against Microsoft centered on the bundling of Windows Media Player with Windows on new PCs. However, Singleton's report urged the Commission "to go to its logical conclusion and support the 'unbundling' of Windows from desktop computers."Component Computers.Singleton noted that there are competitive markets that supply all of the hardware components inside PCs, from processors to memory chips and hard drives, adding, "there is no reason why there should not be diversity in operating systems, too."The report continued, "There is no meaningful competition between operating systems for commodity computers. Microsoft’s dominant position is not in the public interest. It limits the market and has slowed technical development to the prejudice of consumers."Rather than causing support problems for PC users, "competition would encourage open standards and interoperability as vendors would, for competitive reasons, want their products to interact with other vendors’ products."Recommended Solutions.The report outlined various options for unbundling Windows from PC sales, including mandating that computer manufacturers always offer consumers a choice of bundled operating system, or that they be given the option for a refund. Both ideas were dismissed due to possible logistical problems or bureaucratic issues.Instead, the group recommended that PCs simply be sold separately from an operating system, requiring that consumers buy their own. Since Microsoft already uses software activation in its Windows products, there would be no piracy issues for the company. That would give consumers a real choice in determining the cost and features of their operating system software. “For two decades, Microsoft has enjoyed monopolistic power in the operating system market. We are calling for the European Commission to liberalise the market and let consumers benefit from cheaper prices, greater competition and more innovation,? Singleton concluded.Opening the Stranglehold on PC Operating Systems.The American monopoly case against Microsoft uncovered a similar pattern of evidence that Microsoft's monopoly position in PC operating systems was harming consumers, inflating prices, and delaying or defeating technical progress by erecting barriers to competition. The US failed to act however. A variety of states sued Microsoft over using its monopoly position to overcharge consumers for Windows and Office, but neither the federal nor state governments have acted to stop the ongoing abuse of Microsoft’s monopoly status in the US.In contrast, the EU is demanding results in its antitrust case against Microsoft. Acting to unbundle Windows licensing from PC sales would have an immediate effect of revealing the true cost of Microsoft's software while advertising the availability of much less expensive--or even free--alternatives.The First Competitive Market in Desktop Computing.Opening the PC operating system market to competition would also allow new vendors to compete, including Apple. Over the last twenty years, alternative commercial operating systems including NeXTSTEP, OS/2, BeOS, and the AmigaOS were all unable to penetrate the closed software market created by Microsoft through its exclusive contracts with PC makers.Today, there are few alternatives for PC users apart from the free BSD and Linux; obtaining a PC with either system is difficult or impossible without also having to buy a bundled copy of Windows. By unbundling Windows from new PC sales, Apple and other new rivals would have an opportunity to sell their software to PC buyers at the time of purchase, not after the customer has already bought Windows by default. Right now, the limited sales Apple could achieve in offering Mac OS X at retail would largely only eat into the company’s own hardware sales. Even Linux, which is available for free, has had a difficult time establishing any significant share of the PC desktop because the demand for PC software is monopolized by Microsoft’s exclusive agreements. [Why OS X is on the iPhone, but not the PC]$15,000,000,000 Up For Grabs.Such a decisive move by the EU would crack open an equal opportunity to compete for revenues that are currently guaranteed to Microsoft. Exposed to real competition, the company would no longer be able to rake in 81% profit margins on sales of its half-decade old Windows XP software, as it reported doing last year. Apple--along with IBM, Novell, and other companies supporting Linux--would be free to earn an completive share of the nearly $15 billion operating system market that Microsoft now controls. Existing products could immediately offer consumers better prices, better features, and better performance.The distribution of all that money would rest with the purchasing decisions of businesses and consumers--a free market--rather than back room deals between Microsoft and a few big PC makers. Vendors offering better technology at a better price would be rewarded with more revenues to continue their development work, resulting in further advances.No doubt the Windows Enthusiasts advocating that the courts take action against Apple and the European music labels to insist upon fair and free trade throughout the EU would similarly support plans to open up the decades long monopoly that has prevented users from being able to select an operating system when they buy PC hardware.[Office Wars 2: Microsoft’s Outrageous Office Profits][Office Wars 3: How Microsoft Got Its Office Monopoly][BBC’s Bill Thompson Prints Irresponsible Rubbish on Apple][Forbes Prints Insanely Self Serving Attack on iTunes by MediaNet CEO Alan McGlade]What do you think? I really like to hear from readers. Comment in the Forum or email me with your ideas. Like reading RoughlyDrafted? Share articles with your friends, link from your blog, and subscribe to my podcast! 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