Is this the end of Apple Computers? 4

Well, at least the name. They are now officially Apple, Inc.
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The end of Apple Computers
So. Apple has finally given the consumers what they think they want, and as cool a product as no doubt all the blogs will say it is, it could well turn out to be one of the disastrous decisions in history.

First things first: Apple Computer Inc. is now, legally, Apple Inc.

The other change in the keynote at Mac world was a series of absences:

No iLife update.
No iWork update.
No Demo of OS 10.5.
No new desktop machines.
No new laptops.
Most significantly, no “one more thing“.
Apple has put all of its metaphorical eggs into the basket of producing its own smart phone, which will, of course, be a truly wonderful piece of kit. It beats any current handheld or telephone, of that one can be almost sure.

Yet to do it, it has clearly had to divert a huge amount of developer (hardware and software) time into the creation of its new product, an iPod with phone and data.


(Via .)


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4 thoughts on “Is this the end of Apple Computers?

  • Steve

    Interesting that this blog you reference has described this new product as “an iPod with phone and data.”

    This really is going to be the deciding point for this product. Is it an iPod with stuff, or a smartphone with an MP3 player? That drives so many other market positioning and pricing issues.

    Of course, based on our conversation, I had to blog on this myself.


  • cbrady

    Meh. I don’t think people are going to say, “Wow, want an expensive iPod” and walk away. They may walk away, a lot of people will because it is Cingular (read some of the comments here), and because they don’t want or need a phone with all of this. But I bet lots of them will still buy an iPod.

    Based on our conversation, (good grief! I just saw your post, it is a novel!) I still don’t see your complaint or consternation. The point is that Apple is creating its own market. Yes, they compare themselves to smart phones (that Jobs says now don’t look “so smart”) and obviously they grow out of the iPod, etc. There were audio players before the iPod, but Apple made a new market when they introduced their player. I think they are trying to do the same thing here.

    You ask

    All that said, I still think the price points they had established for their high end iPods make sense. These are “Nanos” with smartphone features added. An 8 gb Nano runs (today) for $249. Is the phone feature worth another $350?

    Yes, because it is not just a “phone feature.” I suppose, if we want a comparison it is to Windows CE because something that not many folks are commenting on yet is that the iPhone is running a version of OSX and will run “desktop-class applications and software.” Link So far, no MS Office or even the iLife/iWork apps, so far as I can tell, but I bet it won’t be long before there are plenty of apps. As for the cost, I compared it to the Treo and Blackberry because they are the only other true multi-function communication devices (although the Blackberry still lacks WiFi). Their prices are comparable and I think it will succeed. As you point out, Apple has never competed for the massive government or corporate contracts (outside of media and education), but they have still managed to be extremely profitable and the most highly valued brand in tech.
    Only time will tell, but if I had the cash, I would buy AAPL.

  • Steve

    You wrote:

    “As for the cost, I compared it to the Treo and Blackberry because they are the only other true multi-function communication devices (although the Blackberry still lacks WiFi). Their prices are comparable and I think it will succeed.”

    Well, let’s see… according to the Cingular website, the prices (after rebate, and with 2 year plan–so comparable to Apple’s “product”) are:

    Blackjack — $199
    Blackberry Pearl — $199
    Cingular 8525 — $399
    Palm Treo 680 — $199
    Palm Treo 750 — $199

    It looks like a “comparable” price point would be about $199. Assuming an Apple Premium for “cool features” we are again looking at $349 being nearly twice as expensive.

    I am not saying that they won’t sell, or be successful. I am saying that I think it is priced too high for the product offering.

    It’s about price and sales points, and marketing. It’s about matching the product to the proper demographic.

    It’s about defining your product.