Apple: We are attending fewer trade shows each year

Filed under: Apple Corporate, AppleMacworld is reporting that Apple will not attend the Apple Expo in France this year. This year's expo is scheduled to take place on September 17 - 20. An Apple spokesperson was quoted by Macworld saying, "Apple is participating in fewer trade shows every year, because often there are better ways for us to reach our customers."Macworld notes that this was the same excuse given by Apple when they decided not to attend the NAB (National Association of...

Filed under: Apple Corporate, AppleMacworld is reporting that Apple will not attend the Apple Expo in France this year. This year's expo is scheduled to take place on September 17 - 20. An Apple spokesperson was quoted by Macworld saying, "Apple is participating in fewer trade shows every year, because often there are better ways for us to reach our customers."Macworld notes that this was the same excuse given by Apple when they decided not to attend the NAB (National Association of Broadcasters) tradeshow. Apple has, however, started using their Cupertino campus to host several special announcements including last year's iMac announcement and the recent iPhone SDK announcement.Read | Permalink | Email this | Comments
  • ★ How Leander Kahney Got Everything Wrong by Being a Fucking Jackass

    A decade ago, Wired was my favorite magazine. Today, they print mind-numbing tripe like Leander Kahney’s 3,500-word “How Apple Got Everything Right by Doing Everything Wrong”. Kahney’s central premise, insofar as there is a premise, is that Apple has succeeded either despite or because it operates in ways that are contrary to conventional wisdom. Kahney writes: Everybody is familiar with Google’s famous catchphrase, “Don’t be evil.” It has become a shorthand mission statement for Silicon Valley, encompassing a variety of ideals that — proponents say — are good for business and good for the world: Embrace open platforms. Trust decisions to the wisdom of crowds. Treat your employees like gods. What do any of these things have to do with “evil”? Who, prior to Leander Kahney here in this piece, has decided that this is what Google means by not being evil? These three things may well be apt descriptions of Google’s corporate strategies (although it’s debatable), but they’re unrelated to Google’s “Don’t be evil” mantra. Mediocre employee cafeterias are evil? It’s ironic, then, that one of the Valley’s most successful companies ignored all of these tenets. It’s particularly ironic given that Apple had been in business for two decades prior to Google’s existence. Google and Apple may have a friendly relationship — Google CEO Eric Schmidt sits on Apple’s board, after all — but by Google’s definition, Apple is irredeemably evil, behaving more like an old-fashioned industrial titan than a different-thinking business of the future. “Irredeemably evil”. Because they’re secretive and develop closed platforms. Think about that. What’s more, Google’s engineers have unprecedented autonomy; they choose which projects they work on and whom they work with. And they are encouraged to allot 20 percent of their work week to pursuing their own software ideas. The result? Products like Gmail and Google News, which began as personal endeavors. So Google employees just stroll into the office and work on whatever they want. Uh-huh. And there certainly aren’t any projects from Apple that started as side-projects by one inspired engineered. Nothing like, say, iMovie ’08. Jobs, by contrast, is a notorious micromanager. No product escapes Cupertino without meeting Jobs’ exacting standards, which are said to cover such esoteric details as the number of screws on the bottom of a laptop and the curve of a monitor’s corners. There’s certainly no one at Google who sweats the details and approves every change, no matter how minor, to the Google.com home page. No one like, say, Marissa Mayer. Kahney’s point seems to be that it’s somehow surprising that Apple has succeeded despite being different than Google, and but also that Google is somehow representative of a typical Silicon Valley company. The truth is obvious: Google and Apple are both very atypical companies. And in many ways, particularly the specific ways Kahney claims they’re so very different, they’re actually alike. With regard to “open platforms”, neither Google nor Apple are dogmatic either way. So, yes, it’s true that Apple’s strategy is not to be open by default out of the belief that “openness” is inherently good or inherently leads to success. But nor is it to be closed by default, either. Apple simply tries to do what’s best for Apple. In some cases that is closed (Mac OS X, iPhone OS), and in others it is open (WebKit, Darwin). The same goes for Google. They are a huge contributor and proponent of open source software, but last I checked, they haven’t released the source code for Gmail or their algorithms for web search and ad relevance. Apple’s WebKit is the perfect example: open source code implementing open web standards, and acting as the built-in web rendering engine for numerous mobile platforms that compete directly against the iPhone — including Google’s Android. The whole contrast-with-Google angle makes no sense, doesn’t hold up to the least amount of scrutiny, and serves no purpose other than to reach the punchy conclusion that Apple is “irredeemably evil”. By Kahney’s logic, any company that is different from Google — and clearly most companies are far more different from Google than Apple is — is evil. The simple, obvious truth is that both Apple and Google have atypical strategies and cultures, and both companies have achieved atypical results. Imagine that. Here’s Kahney’s analysis regarding Apple’s lack of internal openness: Apple’s secrecy may not seem out of place in Silicon Valley, land of the nondisclosure agreement, where algorithms are protected with the same zeal as missile launch codes. But in recent years, the tech industry has come to embrace candor. Microsoft — once the epitome of the faceless megalith — has softened its public image by encouraging employees to create no-holds-barred blogs, which share details of upcoming projects and even criticize the company. Facelessness is not secrecy. Microsoft has never been all that secretive as a company. In fact, they’re (in)famous for the opposite — leaking product details far in advance for competitive advantage. As for Google’s complete and utter lack of secrecy, ask them to tell you the details of their data centers. Sun Microsystems CEO Jonathan Schwartz has used his widely read blog to announce layoffs, explain strategy, and defend acquisitions. What with Sun’s stock price losing 97 percent of its value over the last seven years, it’s hard to believe any company wouldn’t model themselves after Sun. Layoffs are fun when the CEO blogs about them. Apple’s relationship with the press is dismissive at best, adversarial at worst; Jobs himself speaks only to a handpicked batch of reporters, and only when he deems it necessary. (He declined to talk to Wired for this article.) What kind of secretive crackpot wouldn’t want to speak to a writer working on a piece that labels your company “irredeemably evil” and whose best-known work is a book that literally brands your customers as cultists? What a jerk. Forget corporate blogs — Apple doesn’t seem to like anyone blogging about the company. Guess we’ll have to take Kahney’s word for that. And Apple appears to revel in obfuscation. For years, Jobs dismissed the idea of adding video capability to the iPod. “We want it to make toast,” he quipped sarcastically at a 2004 press conference. “We’re toying with refrigeration, too.” A year later, he unveiled the fifth-generation iPod, complete with video. The gall of the man, refusing to lay bare Apple’s competitive plans in public a year in advance. There’s an old poker adage: Look around the table, and if you can’t tell who the sucker is, it’s you. One gets the feeling that if you see Leander Kahney at your table, you can stop looking. Here’s the best part of the piece though: Secrecy has also served Apple’s marketing efforts well, building up feverish anticipation for every announcement. In the weeks before Macworld Expo, Apple’s annual trade show, the tech media is filled with predictions about what product Jobs will unveil in his keynote address. Consumer-tech Web sites liveblog the speech as it happens, generating their biggest traffic of the year. And the next day, practically every media outlet covers the announcements. Harvard business professor David Yoffie has said that the introduction of the iPhone resulted in headlines worth $400 million in advertising. What makes this so great is that just seven paragraph prior, Kahney retraces the saga of Apple vs. Think Secret publisher Nick Ciarelli1 thusly: Most companies would pay millions of dollars for that kind of attention — an army of fans so eager to buy your stuff that they can’t wait for official announcements to learn about the newest products. But not Apple. Over the course of his run, Ciarelli received dozens of cease-and-desist letters from the object of his affection, charging him with everything from copyright infringement to disclosing trade secrets. In January 2005, Apple filed a lawsuit against Ciarelli, accusing him of illegally soliciting trade secrets from its employees. One can argue (as I would) that Apple’s product secrecy is worth tens of millions of dollars in publicity every year. Or, one can argue that Apple spitefully pissed away even more valuable publicity by shutting down Think Secret. (You’d be wrong, but you can reasonably argue that.) But Kahney, in the course of seven paragraphs in a single article, argues both. It boggles the mind. Kahney’s own source claims the secrecy surrounding the iPhone introduction alone was worth $400 million dollars in publicity. Even if that’s off by an entire order of magnitude, that’s a lot of dough. And yet in the very same article Kahney presents it as a mystery for the ages why Apple would take an adversarial position against Think Secret, a for-profit enterprise dedicated to spoiling exactly that sort of surprise product introduction. Does anyone at Wired even read this shit before publishing it? As part of the can you believe what these heartless bastards did this poor kid setup, Kahney writes, “At heart, though, Think Secret wasn’t a financial enterprise but a personal obsession.” I wonder if Ciarelli tried that line on the IRS. ↩

  • Apple Expo '08 dates announced, events detailed

    Filed under: Apple Corporate, Other Events, iPhoneThe Apple Expo is Europe's Apple conference -- similar to the Macworld expo in the US. Apple Expo '08 has posted details about the expo, including dates for this year's conference: Wednesday, September 17 through Saturday, September 20, in Paris, France.Currently, there are only two iPhone events scheduled out of the over 30 planned events. It is a nice change to see that the iPhone will not "steal the show" in Europe like it does at Apple conferences in the US. You can see all of the details, exhibitors, and scheduled events on the Apple Expo website. As we noted earlier, Apple will not be attending this year's Apple Expo.Read | Permalink | Email this | Comments

  • 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,â€? 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 “bloggersâ€? in a front page article in Forbes that screamed, “they destroy brands and wreck lives. Is there any way to fight back?â€? 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.â€?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.â€? 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,â€? 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,â€? 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 Microsoftâ€? 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,â€? 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!â€?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.â€?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 “suckersâ€? 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.â€?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,â€? 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,â€? 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.â€?[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,â€? 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?â€? 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.â€? Scary, uncertain, and doubtful! “No longer is Apple the plucky underdog out to save the world,â€? 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.â€?If Apple sold 250,000 units of the Apple TV, “it's already doubled the amount of new customers Tivo made last year,â€? 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.â€?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 “suckersâ€? blubbering? Where's the reporting that “Microsoft regularly betrays its partners?â€? 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,â€? 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 Brotherâ€? 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!

  • Macworld 2009 to Be Apple’s Last

    Today, Apple announced that the upcoming Macworld Expo (Jan. 5-9, 2009) will be the last Apple attends. On Tuesday, January 6, Phil Schiller will give the opening keynote and, according to Apple, it will be the last keynote given at a Macworld. Apple says that trade shows have become a “very minor” part of their marketing efforts and as such they are scaling back on their attendance of such events. Each year the Macworld Expo is practically the Mecca of Apple users with Steve Jobs giving a keynote that both satisfies and blows rumors out of the water. With Apple no longer attending Macworld events, I would imagine that attendance to the events will dramatically decrease as many users and journalists make the trip primarily to find out what Apple will announce. On top of that, the fact that Phil Schiller will be the primary person delivering the keynote, as opposed to Jobs, is a new source for rumors in itself. We've written about a world without Jobs before, but this seems to solidify the company's position even more. What are your thoughts? Would you attend a Macworld without Apple? Concentric Hosted IT Solutions and Web Hosting Click here to save cost on your IT demands

  • Adobe trimming Expo budget, 600 jobs [updated]

    Filed under: Macworld, Rumors, Software, Graphic DesignMacworld notes today that Adobe won't have a booth at Macworld Expo, but will still be offering training sessions at the conference. Traditionally, Adobe's booth has been a major presence on the show floor. The bad news might not end there: A tipster with purported connections inside Adobe told us that the company is considering laying off a significant fraction of its nearly 7,000 employees, including management. Update 4 p.m.: The axe fell a few hours ago at Adobe, according to two three former employees, but we don't know how widespread the damage is. Update 5 p.m.: Mike Downey, principal evangelist for the Flash, Flex and AIR products is "no longer with Adobe." Update 5:10 p.m.: Adobe issued a press release: "Adobe also announced the implementation of a restructuring program, and has taken steps to reduce its headcount by approximately 600 full-time positions globally. The restructuring will result in anticipated pre-tax charges totaling approximately $44 million to $50 million. The Company expects approximately $28 million to $30 million of the restructuring charges to be recorded in the fourth quarter of fiscal year 2008." Read the full press release here. This points to some serious, knee-jerk cost-cutting at Adobe, since Macworld Expo has been so valuable to Adobe's relationship with the Mac user base in the past. "Adobe has decided to shift its focus at the Macworld trade show this year," the company said in a statement given to Macworld magazine. "Macworld [Expo] is a valuable industry show and we will still be an active part of it with members of our product team involved in Macworld tracks, including a full day of CS4 demo sessions with Adobe evangelists on Wednesday, January 7." Adobe Creative Suite 4 was released in October. [Via O'Grady's PowerPage.]TUAWAdobe trimming Expo budget, 600 jobs [updated] originally appeared on The Unofficial Apple Weblog (TUAW) on Wed, 03 Dec 2008 11:15:00 EST. Please see our terms for use of feeds.Read | Permalink | Email this | Comments

  • Macworld '09 registration opens today

    Filed under: MacworldPull out your credit cards, Apple fans. Registration has officially opened for next January's Macworld Expo in sunny California. There are eight tracks of events to follow this year, including graphic design, digital photography, digital music, IT and more. Plus, Steve Jobs usually shows up with an announcement or two.We'll be covering the events at Macworld '09, so make sure you've got TUAW bookmarked.Read | Permalink | Email this | Comments

  • What's Happening at Apple: Trade Shows

    By now, everyone knows that Apple (AAPL) is pulling out of MacWorld Expo after this year. More importantly, Steve Jobs won't be delivering his annual keynote speech. Instead, Philip Schiller, Apple's senior vice president of Worldwide Product Marketing, will deliver the keynote address. Following a year of rampant speculation on Steve Jobs' health, it is quite worrisome to note that Philip Schiller also presented in Steve Jobs' stead at Macworld Expo when Jobs had pancreatic cancer in 2004. The health and continued presence of Steve Jobs aside, this is the first time that Apple's shift away from trade show marketing has manifested itself to the general public. While unexpected to most, the decision to leave MacWorld Expo is not entirely out of character. Apple has been slowly pulling out of trade shows all year. Apple pulled out of the National Association of Broadcasters Conference in February, and it also pulled its appearance at Apple Expo in September.

  • The Silent Keynote Campaign

    Filed under: Macworld, Analysis / Opinion, AppleThe Apple keynote address at Macworld Expo is usually a boisterous affair, full of cheering, applause, and anxious chatter about new products. With 2009 being the last year of Apple's attendance at Macworld Expo, Lesa Snider King thinks that a silent protest might send a message to Apple's leadership: On Tuesday, Dec. 16 Apple Inc. announced that Steve Jobs would not do the keynote at the 2009 Macworld Conference & Expo. That's okay. They also announced that they would no longer attend the conference in the future. That's not okay. For 25 years, a very loyal and passionate Mac community has descended upon the halls of Moscone Center in San Francisco, CA to see, hear, and learn more about the computers they love. By announcing their departure from this beloved show hosted by IDG, Apple is sending a message to the entire community -- professionals, hobbyists, media, Mac User Groups, and even IDG themselves--that they care nothing for the community who supported them through thick and thin.If you're attending the Macworld Expo keynote on Tuesday, Jan. 6, you can send a message to Apple by remaining silent during the 2009 keynote. While Phil Schiller is on the stage, let there be no applause, no whistling... just utter and complete silence.My name is Lesa Snider King and I'm mad at Apple.My personal opinion is that Apple can do whatever it wants, and that IDG and the Mac community can decide to do whatever they want to. If Apple announces something really insanely great at Macworld Expo '09, would you really stay silent? Let's hear your opinion of the Silent Keynote Campaign. TUAWThe Silent Keynote Campaign originally appeared on The Unofficial Apple Weblog (TUAW) on Fri, 19 Dec 2008 09:00:00 EST. Please see our terms for use of feeds.Read | Permalink | Email this | Comments

  • 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!

  • ★ Macworld Expo Predictions

    Predictions and advance commentary for tomorrow’s Macworld keynote, some based on consensus rumors, some based on no more than wishful thinking on the part of yours truly. This is all conjecture and tea-leaf-reading (well, mostly), so, please, no wagering. I keep two questions in mind when evaluating Apple product ideas: Would people run out to stand in line to buy this immediately? If not, is there a long-term strategic reason for Apple to start selling this now? If the answer to both questions is “no”, then Apple isn’t going to do it. The iPhone is a perfect example of a #1; the Apple TV is a #2. New Sub-Notebook MacBook: Yes Apple hasn’t had a small notebook in its lineup since the 12-inch PowerBook G4, which I still see in wide use. If you’re using a portable as a portable, smaller size and lighter weight make a tremendous difference. The demand for a good notebook smaller and lighter than standard MacBooks is strong; I think it’s a sure thing that Apple is set to announce one. (Of course, I said so before last year’s Macworld, too.) I say the consensus rumors are right: super-thin, no built-in optical drive, widescreen 12-inch display. It will use a hard drive, not flash memory, for storage. (Look no further than the iPod Classic to see how hard drives don’t keep a device from being super-thin). Rumors are already running strong that it’ll be called MacBook Air. (I like it, not sure though if Nike would.) Newton-y Tablet Thing: No I am nearly convinced that this product exists, at least as a project in development. My hunch is that AppleInsider has it spot-on: it’s in development, but not yet ready to launch, and, perhaps, never will if Apple can’t get it right. (Recall Steve Jobs’s statement to Walter Mossberg that he’s as proud of some of the products Apple decided not to ship as he is of the ones they did.) Like the iPhone, it runs “OS X” but not Mac OS X, does not run Mac apps, and will not be called a “Mac”. The big problem with a “tablet” computer of any sort is that 15 years of industry history indicate that people do not want to buy tablet computers. But the iPhone, arguably, is a tablet computer — a sub-tablet, if you will. The key mistake with failed efforts like Microsoft’s Tablet PC (and even Apple’s own Newton) was that these devices attempt to do too much. It’s seen as a feature that Tablet PCs run the full version of Windows. But why force software UI’s designed for traditional hardware form factors upon a totally different device? A successful tablet-like device from Apple, I think, would clearly be designed as a secondary computing device — a satellite attached and synched to a Mac or PC (probably, of course, through iTunes). There’s still the “what would I use it for?” factor. It seems to me it would need to be something more than just an iPod Touch with a larger screen — if that’s all it is, then what’s the point of buying one instead of a smaller, poctetable, iPod Touch or iPhone? I simply lack the cleverness to imagine what that hook might be — but I can’t imagine Apple releasing such a product without an obvious “Oh I gotta buy that” hook. Anyway: I do think something like this is in the works, but I don’t think it’s coming out now. I’d love to be wrong. Ubiquitous Wireless Networking for MacBooks: Please After using my iPhone for a few months, it started feeling weird that my PowerBook doesn’t have ubiquitous wireless networking: Wi-Fi when available, and seamless, instant switchover to something else when it isn’t. Just what that “something else” is, I don’t know. EVDO? WiMax? A Bluetooth connection to share an iPhone’s EDGE connection? I don’t care. But I’d pay for it. Ubiquitous networking is certainly the most intriguing thing about Amazon’s Kindle. It just feels crippled that I can’t get a network connection — even a slow one — once I’m outside the range of Wi-Fi. Wireless Time Machine Backups: Yes Time Machine is very cool; the first backup that qualifies as “you don’t have to do anything, it just works”. But currently it only works using a storage device connected via USB or FireWire. Tethered backups are irritating with notebooks — and MacBooks are the fastest-growing segment of Apple’s Mac hardware sales. The problem is that when you want to use your portable away from your desk, it’s a pain to disconnect mounted USB and FireWire drives. You can’t just pulled the plugs — you’ve got to unmount them in the Finder first. And, once you do so, to get Time Machine backups running again, you’ve got to re-tether your storage drive. Leopard developer seeds all supported network backups to USB drives connected to an AirPort base station. The feature was also demoed at WWDC. It was removed (or, better said, disabled) very late in Leopard’s development, supposedly because of a security problem that was discovered, but I expect the feature to return, perhaps in 10.5.2. It’s a terrific idea, perfect for multi-Mac homes and small offices. But so why not sell a device as a dedicated product — a big 500 GB or larger hard drive (or array of them) with built-in AirPort networking. No need to attach it to a separate AirPort base station, no temptation to use the device for anything other than one purpose: backing up via Time Machine. Just plug it into a power outlet, run through a simply configuration tool a la AirPort Utility, and it’s ready. When it first appears on your network, your (Leopard-running) Mac could prompt to ask if you’d like to use it for Time Machine, the same way it prompts when you first plug in a new USB or FireWire drive. iTunes Movie Rentals: Yes This one seems like such a done deal that it barely qualifies as a rumor. It seems obvious: Unlike with music, there’s been a strong market for movie rentals for as long as there’s been a home video market. Most movies aren’t worth watching more than once. Reports (based on leaks from studio executives) indicate rentals will cost $3-5, and will expire after 24 hours. If true, presumably that means they’ll expire 24 hours after you beginning playing them, not 24 hours after downloading. It’d be nice if the terms were a bit more flexible than that. One of the best things about Netflix, and something which makes it far more appealing than traditional brick-and-mortar Blockbuster-style rentals, is that you can watch movies on your own terms. A Netflix-style iTunes movie subscription service that lets you keep a certain number of unlocked movies open at the same time would be killer. Apple TV 2.0: Yes Jobs has called Apple TV a “hobby” for Apple. I think they have high hopes for it, but calling it a hobby is a practical way to buy time for it. What Apple did with the iPod was start as small and simple as they could — one device, in one configuration, only for the Mac, and all it did was play recorded audio — and then build the platform slowly from there. Things like Windows support, color screens, video playback, and expanding to a range of form factors all came incrementally. I think that’s the plan with Apple TV. Start simple and humble, and build from there, year after year. One obvious improvement (albeit contingent upon another rumor) would be to allow us to buy (or rent) movies and TV shows directly from the iTunes Store, right from the Apple TV. If the iPhone can do it, the Apple TV should too. I still think it’d be good business for Apple to sell their own HDTV sets with Apple TV built-in — more money for Apple, one fewer device spewing cables behind the display. DRM-Free iTunes Plus Music From the Other Major Music Labels: No I think Apple would love to have this, but it seems pretty clear that the major labels — other than EMI, of course — are convinced that it’s in their interest to withhold DRM-free music from Apple, in the hopes of helping Amazon gain market share. It actually agree that it’s in the music labels’ interest for Amazon’s music store to succeed. I’m not sure, though, that withholding DRM-free music from Apple is spiting anyone other than iTunes customers. I suspect the vast majority — an overwhelming majority — of iTunes music purchases are made by people who have at best only a vague inkling of what “DRM” is. If there’s any actual logic to it, it’s PR — withholding DRM-free music from Apple makes it easier to paint Apple as a company bent on using iTunes as a competitive cudgel to lock customers in to iPod hardware. Only a hack reporter would buy into that line, given Steve Jobs’s unequivocol “Thoughts on Music” open letter last year. One thing that would dispel any negative stories on the state of the iTunes empire, of course, would be the long-awaited debut of The Beatles catalog, exclusively at iTunes, perhaps with an on-stage visit from Paul McCartney. New iPhone Hardware: No, With a Minor Exception Apple announced the original iPhone a year ago, but they didn’t ship it until six months ago. They’re not going to announce new iPhones six months in advance again. (It was to their advantage last year to cause people to postpone phone purchases until the iPhone appeared; that’s not the case now that the iPhone is on the market.) If anything, I don’t expect new iPhones to appear until next fall, at the yearly iPod/iTunes pre-holiday season special event, leaving the original iPhone on the market for over a year. Why revise hardware for a product that, by all accounts, is selling remarkably well as-is? The only exception I could see would be a 16 GB iPhone that’s otherwise unchanged from the current 8 GB model. iPhone SDK News: No I can see the upcoming iPhone SDK getting a mention from Jobs on stage, a reminder that it’s coming and that’s it’s going to be great, but Macworld isn’t WWDC, and SDKs don’t make for splashy presentations. If I’m wrong, it’ll be because they have a demo queued up from a third-party developer with early access to the SDK. Actual third-party software (written against the actual official SDK) is demoable. Games, perhaps? The apparently-leaked 1.1.3 firmware might make for a good demo, what with the jiggly icons and whatnot. Cinema Displays With Better Resolution, Brighter Screens, and Built-In Cameras: Yes If I keep predicting it, eventually I’ll be right.

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