Archive for June, 2010

June 30, 2010

Apple, Market Laggard

Apple today announced that it sold its three millionth iPad™ yesterday, just 80 days after its introduction in the US. iPad is a revolutionary and magical product that allows users to connect with their apps, content and the Internet in a more intimate, intuitive and fun way than ever before. (June 22nd Apple Press Release)

Revolutionary? Magical? Are we talking about the iPad? The dirty screened, awkward-to-carry, odd-sized, camera-less, phone-less, text-less tablet. Try editing an EXCEL spreadsheet on an iPad. You need more than magic. You need an act of god.

Sorry Steve. Yes, a step forward. Yes, a brilliant marketing move. (Apple has defined a new market, and is forcing its hapless competitors into a catch-up game.) But this is not revolution. In fact, by some measures, the iPad is regressive. You left behind convergence (no telephone, text, or videochat capabilities), and you shied up way from the true target of the revolution, the TV.

Steve, unfortunately, Tim Beyers got it right in his open letter to you:

Dear Steve,

It’s time to end the charade. Apple TV was never a hobby, and it isn’t one now. You need to stop talking as if it is, because you’re out of time. Smart TV is here. Apple will either lead this market or be left behind. (By Tim Beyers  June 22, 2010)

Well, you retort…what about the millions sold! What about the wisdom of crowds.? Could so many be wrong?  Of course not, Apple is hot now. But mass hysterical acceptance of a new product is a poor predictor of future durability of a trend. Remember the Hula Hoop:

Wham-O trademarked the name Hula Hoop…and start manufacturing the toy in 1958….Twenty million Wham-O hula hoops sold for $1.98 in the first six months.

So back to the iPad. It is a transitional device, destined for your junk drawer. (Make room iPod shuffle.)  Either Apple moves decisively to conquer the living room, the large format screen, broadcast TV, or we will look back with our fascination with all things Apple in the same way that we now look back at the Hula Hoop.

June 7, 2010

Enemy of the future

Nintendo has designated Apple (AAPL) as the “enemy of the future.”

The Times Online reports that the video game company is “preparing to unleash the full force of its development and marketing artillery against Apple,” having come to the conclusion that it has already won its console game battle against the Sony (SNE) Playstation 3. The real threat, the company seems to think, is now from the iPhone and the iPad, which post a particular threat to the company’s DS handheld games.

Well,  I agree. The iPhone and iPad are existential threats to Nintendo.  Unfortunately the war is already over. The converged gaming, communication, computing, entertainment device has triumphed. And this is sad–because Shigeru Miyamoto, the design genius behind Nintendo, is a true visionary.

When Shigeru saw that the world had changed and video games were slipping from the computing  avant-garde to irrelevance, he  decided to target a new market that would  use the video game platform in a radically different way. Instead of over-caffeinated teenagers and aging executives who are experiencing mid-life crises, he targeted families, in particular women:

Eighteen months ago, just when video games were in danger of disappearing into the niche world of fetishists, Mr. Miyamoto and Satoru Iwata, Nintendo’s chief executive, practically reinvented the industry….Their idea was revolutionary in its simplicity: rather than create a new generation of games that would titillate hard-core players, they developed the Wii as an easy-to-use, inexpensive diversion for families (with a particular appeal to women, an audience generally immune to the pull of traditional video games).

The gesture-based interface that Shigeru pioneered with Wii will dominate gaming and home based communication and computing. Within three-years, families will routinely stand in front of their large format screens gesturing, talking, commanding, playing.  But Nintendo, unless it undergoes a radically transformation, will not be providing the experience.

The gesture, voice and touch memes will coalesce into an environmentally stable set. We will touch the devices that we hold. We will gesture to the devices that we hang on walls. We will command our devices to obey whenever it is convenient and effective. The company that realizes this vision wins.The contenders: Apple, Microsoft, Google, HP.

My top pick?

If Steve Jobs decides that Apple is smart enough to figure out how to turn Apple TV from a hobby into a real product, Apple wins. If not, the  field is wide-open for the converged device players.  Kindle, Nook, Wii they are all heading to extinction.

June 6, 2010

A chain letter needs a good supply of idiots

“I’ll tell you a secret. It began with the tablet. I had this idea about having a glass display, a multitouch display you could type on with your fingers. I asked our people about it. And six months later, they came back with this amazing display. And I gave it to one of our really brilliant UI guys. He got [rubber band] scrolling working and some other things, and I thought, ‘my God, we can build a phone with this!’ So we put the tablet aside, and we went to work on the iPhone.” (Steve Jobs at the D8 Conference, June 2nd)

When I read, and re-read this quote from Steve Jobs, I was most struck by the viral process that set loose the Touch  meme. In a flash of inspiration,  a foreign meme, Touch,  was injected  into the iPhone product development process.  And this meme, with prodigious speed and fidelity, replicated itself throughout the smartphone and computing eco-system, successfully competing with (and I predict ultimately crowding out) the mouse/keyboard meme.  However, one good meme is not enough.  As we explored in Galapagos, to have a lasting impact, we need a set of related, rapidly replicating memes to achieve evolutionary stability (i.e., have an enduring impact).

I think Apple with the iPhone/iPad has come close to achieving this “evolutionary stable set” with a few notable exceptions, most critically around a gesture-and voice-driven converged device that will compete with and ultimately replace TV.  And for those smug Apple acolytes who think the battle is over and Apple’s dominance is assured, read the following Steve Jobs’ quote below very carefully:

It’s not a problem with the technology, it’s a problem with the go-to-market strategy….I’m sure smarter people than us will figure this out, but that’s why we say Apple TV is a hobby. (Steve Jobs at the D8 Conference, June 2nd)

If smarter people do figure it out, I believe that Apple’s entire paradigm is at risk and the iPhone and the iPad will go the way of the hula-hoop and the get-rich chain-letter. A sobering thought for those who are hoping to ride their Apple stock to 10x its current value and retire worry-free.

See below for a list of what I believe are an evolutionary stable set of memes. And note that the iPad  scores poorly when rated against these criteria. (See The Next Big Thing for a discussion on why the iPad is only a transitional, not transformative, device.)

Evolutionary stable set of memes

  1. Voice.  Interfaces that use voice as an overlay technology to supplement touch and gesture.
  2. Touch. Multi-touch display that you can type on with your fingers
  3. Gesture. Gesture- driven display when touching is impractical or undesirable (e.g., Wii)
  4. Collaboration-enabled. Conferencing (including video), screen sharing, online-participation
  5. Location-aware.
  6. Mobile-enabled.
  7. Multi-purpose. Device becomes the preferred tool for at least three major functions (e.g., voice recorder, camera, gaming, book reader)
  8. Converged. Brings together telephone, TV, computing to a single hardware platform.
  9. Fast-evolving  devices. Devices change shape, size, portability to fill new niches in the eco-sytem. (Example: iPod, iPod shuffle, iPod nano)
  10. Fast-evolving symbiotic devices.  Add-on products (portable speakers, alarm clock docking stations, etc.) proliferate rapidly.
  11. Apps.  Nearly limitless supply of no-cost or low-cost self-contained applets that cater to specific needs, e.g., Point me to Mecca. What species of tree is in front of 220 Mott Street?)
  12. Single source distribution. Corporate-mediated single source distribution platform for  apps (e.g., App Store) and content.
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