Thursday, June 14, 2007

Is Apple Phasing Out Their Computer Business?

Hot of the heels of the WWDC, I have a comment on Apple's computer business

OK, want I'm about to say may be controversial but hear me out for a second. If you look at Apple over time, when they were just a computer company they were floundering, directionless, and heading to lost even more market share, and possibly die. If you look at Apple, pre-Ipod (I call this the PI era), then they we ready to hit the skids.

Then Jobs said "Let There Be A Consumer Electronics Company Here", instead of a computer company. They launched, iPod and iTunes and saved Apple from the brink of extinction. As the company saw more and more success from the non-computer related divisions, and more and more profit, they have further strayed from the computer by launching Apple TV and soon now the iPhone. Apples profits come less and less from Macbooks and more and more from devices. When the computer business is less than 5% of their business, but 50% of their support and engineering costs, what do you think will happen?

At some point - and here comes the prediction from the Future Hall Of Predictions - Apple will discontinue, or severely restrict, or even allow their computer business to become niche. What is the market share of the Macbook now? 5%? 4%? Barely a blip, barely a market. Sure the Mac faithful will disagree, but look at the overall picture - the overall direction for Mac. When iPod and iTunes and iPhone make up 90%+ of their revenues, what would YOU do if you ran Apple?

1 comment:

GME said...

Considering the amount of software Apple supports which is highly successful; such as FCP, Aperture, Logic, Shake, etc. the path you suggest is... simply ludicrous.