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Maybe you’ve seen some form of the 230 ads. If you haven’t, we’ve embedded it below. The ad – in its various forms – features a bouncing, smiling, and winking electrical outlet that ends up representing the number “zero” after numbers 2 and 3. All of these appear above the numbers “8-11.” So what the heck is it all about?
We all love Apple. Well, most of us do. The last few years, especially since the Vista launch, modern media has pushed on us the virtues of owning a Mac. Most of the top names in the tech blogosphere use Macs, and support almost all of Apple’s products. Leo Laporte, Ryan Block, and Peter Rojas are all self-admitted Macs (though they all come clean to using PCs). The “in” thing to do in the industry is to be a Mac. While this may put Apple in a position to become the leader in the PC industry, there are several reasons as to why Apple doesn’t want to and cannot do so.
Apple has long been the underdog of the PC industry. Right before Steve Jobs’ return as iCEO, we can see that this was for a good reason. Apple’s product line-up was a mess and the company was suffering through its worst years ever. Apple started out as a company that was all about the ability to “Think Different.” With Jobs’ return to Apple, this concept was embraced again, and the company started producing computers for the people. The original iMac and iBook are perfect examples: a colored and translucent computer was all about style and appealed to a younger audience. On the other hand, Windows PCs of the day were still considered the computers of choice amongst the tech elite and the business world.
Cut to today
Apple’s lineup of computers is amazing, to say the least. An Apple computer represents the latest and greatest in hardware: processors, graphics cards, RAM, connectivity technology, and enclosure engineering are all top-notch. The Mac lineup caters to both personal and business users and does so with extreme precision. Yet Apple is still the underdog of the personal computer market, having approximately 10% of U.S. market share. And this is exactly where the company needs to and wants to be, give or take a few percentage points.
One of Apple’s greatest strengths is its ability to manufacture both the software and the hardware that combine to make an amazing piece of machinery which outperforms all competition. But this level of performance comes at a price: the company’s second-greatest strength is the margin it enjoys. The last bevy of financial reports have pegged profit margin in the area of 30% or higher. Compared to rival companies such as Dell and HP, that’s an astounding number! It has turned Apple into a company that’s not only debt-free, but one that also enjoys tens of billion of dollars in the bank (and other short-term investments). But why can Apple charge so much more for its computers while other companies try so hard to earn even a 5 percent margin? Read more »
There is no doubt that the killer app for the iPhone and iPod Touch is the iTunes App Store. Downloads have surpassed 100 million apps back in September, only a few months after the launch of the store. The success of the App Store has been a benefit for everyone involved, a symbiotic relationship of sorts that’s so desirable in business: developers make money selling applications while Apple takes a cut of sales revenue; developers focus on making awesome apps and let Apple take care of billing, distribution, and bandwidth. This much we know.
But the real beauty behind the app store is its simplicity and convenience: find an app you like, hit the install button, and the next moment the app is ready to use; it’s really that simple! Looking ahead, the time is right for the success of the app store to be translated to desktop computing: I believe that Apple will release a version of the App store for the Mac in the next year. Read more »
After a long and drawn-out battle by many a tech enthusiast and digital rights management opponent, the utopia that is DRM-free music has finally arrived. Proponents of a DRM-free music world finally sighed a breath of relief when Apple announced early in January that the entire iTunes music catalog will be void of the restricting and inconvenient technology. But what about DRM-free video? It looks like that’s an entirely different bowl of spaghetti: consumers aren’t interested in downloading video as much as they are in consuming it via streaming. Here’s the lowdown. Read more »
On a grand time line, podcasting today is still in its infancy. Looking down the road, however, can listening to podcasts become a requirement to landing a job? Read on to find out. Read more »
‘Tis the time again. WWDC is coming in less than 12 hours (that’s half a day!), and the Apple fan club here at TechNest Report and around the world is waiting… waiting what shiny new gadgets uncle Steve will give us the opportunity to buy. What useful, sexy, and Apple-branded products will we learn of tomorrow? Here is Alex’s prediction run-up so far:
iPhone/iPod Touch:
iPhone take 2.
New, slimmer form factor with colored back-covers.
3G HSDPA/UMTS, built-in GPS, 16-32GB of storage space.
Subsidized through ATT and world-wide partner carriers: $200 (with a contract). Price unlocked directly from Apple:$400+.
Copy and paste, App Store (obviously), and a non-recessed head-phone jack.
A2DP Bluetooth goodness for listening to music with a wireless headset (I’m surprised the current iPhone still doesn’t have it).
iPhone take 1 and iPod Touch gets the 2.0 firmware and all the features that come with that.
Plethora of 3rd party iPhone/iPod Touch software.
Rebranded and re-written .Mac service
New name: .Me.
Over-the-air (OTA) sync of calendars, address book, bookmarks, pictures, documents.
Push email
Here’s the punchline: avaialble API. Developers can write their own plugins for the new .Me. For example: AWS, developers of the great 1Password application will give me an app that will sync my 1Password keychain from my iBook to .Me and to my iPhone, and the other way as well. What this will do is directly compete with Microsoft’s new Mesh service, which is striving to accomplish the same thing also with an open programming architecture. By the way, .Me is now also available for Windows.
Pricing for the .Me is going to determine its success. Purchased with an iPhone, .Me is free for a year, discounted yearly rate thereafter. Purchased separately from an iPhone (with an iPod Touch, for example), users pay a monthly or a yearly fee, one that is less than the current $100 per year (one can only hope that’s the case). Storage plans for current features of .Mac, such as website hosting and back-up are to increase while keeping plan prices the same as they are today. For example, Apple will charge $4 a month, $40 a year for .Me when purchased separately from an iPhone. This basic plan will have 10GB of storage space on .Mac and thus 10GB of bandwidth to sync between devices. For $6 a moth, $65 a year, users will get 30GB of storage and bandwidth space. And so on.
Another feature of the new .Me: the ability to pipe through to your Time Capsule and any Mac/PC on the network. This way, users can retrieve any file from a home Mac or PC, as well as browse and listen to streaming music/video from an external drive attached to the Time Capsule.
Mac
Preview of next version of OS X.
Intel only.
Not as many new features and changes as Leopard. The focus of this release is code optimization and efficiency.
One of the new prominent features: ZFS.
Improved Spaces functionality with the ability to assign a desktop to each space.
New MacBook. This relaunches the MacBook and the MacBook Pro lines.
13, 15, and 17″ models.
Aluminum and glass.
GPS, WWAN, Wireless USB, WiMax built-in.
Price is no longer directly tied to screen size as it is now.
Prices start at $999, $1099, and $1199, for the respective screen sizes.
Each notebook size is configurable exactly to the liking of the customer. The Pro versions will have top-of-the-line hardware and will be differentiated by being all black. This means that I will be able to get a MacBook Pro 13″ with a real GPU – like a GT8800 for ~$1600, and I will be able to configure a 15″ or 17″ MacBook without a GPU for ~$1099 and ~$1199, respectively.
There is a enough demand for both of these examples and will introduce the Mac to markets that have been looking at the product but discouraged by the $2000 price tag of the current 15″ MacBook Pro. The attractiveness of the lower price point of Mac notebooks will far outweigh the lowered margins. And here is a plea from myself: please don’t charge $2000 for the same hardware that Dell charges $1500 for. It’s a blatant rip off. (MacBook Pro 15″ vs. Dell XPS 1530 come to mind).