macarena's Profile

What Apple NEEDS to do now... Apple has come a long way in the last 7 years - and today no one in their right mind would question the survival of Apple. But Apple and Steve Jobs still need to change their mentality, otherwise, they might still be in trouble some day in the future. Might be very hard to conceive at this point in time... Apple positions the Mac as a computer for the higher end of computing - and intentionally ignores the mass computer market - where margins and prices are low. Their attempt at a cheap computer begins and ends with the Mac Mini - and while the Mac Mini might be an interesting computer for some purposes, it is not really a cheap computer. Today Apple has the edge over Microsoft, because they have a great OS, and a suite of products like the iPod, the iPhone, AppleTV, etc. for which Microsoft has no adequate response. Even their high priced peripherals are tolerated because of fabulous design and usability. But if Apple does not use this opportunity to take significant market share in the computer market, they run the risk that some years into the future, MS gets its act right, and again becomes a potent force in the high end of the market as well. Vista is almost there - the gap between Mac OS and Windows is not as large as it was earlier. Leopard would widen the gap again, I guess, but still Apple should not rest. What should Apple do then - For one, stop acting too pricey - Apple should recognize that there is more money to be made if they have a greater marketshare. Makes it easier to win converts, as well as gives them huge leverage in buying components etc. Also makes it attractive for third party developers to develop applications targetting the Mac. I dont mean they go down the Dell route and commoditize the computer - they can still keep it a closed system, which you can buy only from Apple, but Apple should sell a much wider variety of computers, in a wider price/performance range. Dont ignore the low end - that is where the mass market is. Dont look for obscene profit margins - What Apple has done with the iPhone pricing model is likely to make the most hard core of Apple fans wince. You have the greatest product in the mobile space, the best possible publicity at and before launch. The best possible situation a company can hope for. And what did Apple do - converted what could be a mind boggling success into a PR disaster. It is very obvious Apple tried to milk the market for what the market would bear - and realized the market would not survive, so reduced prices. Even at these lower prices, Apple is still trying to milk the market way too much - with the monthly profit share that AT&T has to shell out. This monthly profit share that AT&T is shelling out, has significant costs to Apple - this is the reason why Apple could not embed iChat into the phone, or support VoIP (if Apple did not want these monthly payments, they could have release iPhone unlocked, and usable in any network - each network can choose to work with Apple to give better service to customers with Visual Voice Mail - and they would have chosen to work with Apple, just so that they would not miss out - Apple could have released a MUCH more powerful phone, and got many more customers if they werent so greedy). And Apple cant blame AT&T this time - AT&T does not profit share with ANY other manufacturer. Several design and usability decisions at Apple are made with very rigid rules. Apple makes the choices for the customer, and the customer has to live with those choices. For some things this is fine - but this is extended to way too many things. Might be good to have some flexibility. Let the main stream users use Apple's choices, and let the more geeky types customize things to their fancy. While Apple has always been a company that cared about its customers, this has always been conditional - we care about customers, but only if they are not too price-sensitive. If the customer is too price conscious, then we would rather not have that customer. We will give a great product, but you have to pay an arm and a leg for it. This approach might work if Apple just wants to be a high end niche in the market, but we have all seen how dangerous that approach can be to the survival of the company. Apple needs to take a leaf from Amazon's book - Amazon does what is best for the customer period, even if it is not in the immediate best interests of Amazon. They offer products from sellers who compete against Amazon at lower prices, on the same Product Page. They warn you if you are about to buy the same CD/book again - so that you dont buy it by mistake. They allow you to read huge swathes of books you are looking to buy, even recipes from recipe books, even if you dont ultimately buy the book at the end. All this is in enlightened self interest. That if you care for the customer, in the long run, it will benefit you. Apple goes only half way in this - might be worth trying to go all the way. At the end of the day - Apple will get a higher market share only if Apple WANTS a higher market share, and is willing to change its style of operation to get a higher marketshare. Today, the game is Apple's to win, if they want it. But if Apple sits on a high horse, and ignores the low end of the market, and tries to extract maximum profits from all their products, they might still lose it.