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Analysts and Apple or the iPod is not a Mac

Usually, I don't believe analyst statements about Apple. Just remember how often they told us that Apple won't survive and will be bought or even disappear from the market. A couple of weeks ago, Joe Wilcox from Jupiter research wrote in his weblog, that Apple might not realize and understand the iPod platform potential or how to extend it. Well, I believe that Joe simply sees Apple like those people who have fun using old clichés. Just think about the wrong comparisons which pop up every day on the internet: Apple failed with the Mac because they did not want to license the Operating System and ROM to others. Now it is Fairplay, the digital rights management in iTunes, and the iPod platform which could face the same destiny like the Mac 20 years ago.

Joe, listen, this comparison does not make sense at all. First. In 1984, there was already a dominant player on the market and Apple's problem was that they had no real business apps for their Macintosh. The iPod is the dominant player in the market and there are more platform actions going on right now: podcasting, iPod photo and flickr et cetera.

Second: Apple uses the Windows and the Mac market as marketing areas. iTunes works in both worlds. The Mac OS in 1984 had no platforms to rely on. iTunes is free and available for more than 100 million potential users.

Third: In 1984, Apple was still Apple and not a Mac company. Now, Apple is not just a Mac company anymore. A lot of internal processes and decisions are focused on the iPod platform. Apple created an iPod division to create even more effective internal structures. Apple separated the iPod's retail and marketing strategies from the Mac. You will find iPods at places where you couldn't be sure if they had known the Apple brand 5 years ago. In other words, Apple is ready for the iPod success and knows how to inter-connect it to its Mac business.

Fourth: The iPod is a consumer product and the Mac wasn't (it least it did not attract mostly consumers). Consumers are more volatile and rely on other sources than corporate markets (where analysts play an important role). What matters is having the right product with the right set of cultural values. Now, we live in a world of brands and branded identities. In a world where products and labels tell your friends who you are. Why else would be white earplugs such a big deal? Welcome to Apple Country!

And finally the questions: Can Apple pull it off and generate more Mac business with the iPods? Errrrrrrgggg! Wrong question. The iPod might increase the Mac sales to some degree, but Apple is growing into a company with different product lines and into a company where the Mac might be (revenue-wise) the less important product in the long run. However, there are lots of products and innovations to be made and to be announced in the area of home entertainment, computer integration, and useful consumer applications. This is where Apple is the innovator and the most powerful player. iPod and Mac are just labels for current ideas and products. Watch out!

Posted: Tue - December 28, 2004 at 12:59 AM           |

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