Archive for ‘Sea Change’

September 17, 2011

A chicken in every pot, a car in every garage, a hologram in every living room

This summer Piper Jaffray (NYSE: PJC – News) analyst Gene Munster dug through component suppliers and found evidence that Apple is gearing up to produce a real TV set by late 2012. Venture capitalist Stewart Alsop, a former board member at TiVo (Nasdaq: TIVO – News), has published rumors that Apple has a television coming. And Steve Jobs himself hinted last year that Apple might build a real television unit.

“The television industry … pretty much undermines innovation in the sector,” Jobs said at the All Things Digital Conference in July 2010. “The only way this is going to change is if you start from scratch, tear up the box, redesign, and get it to the consumer in a way that they want to buy it.”

It’s been over a year since my last post. And not much has changed. RIMM is dying a slow death. Google still can’t build a product that can compete with Apple for consumer mind share. The iPad is still a deeply flawed, beloved device. And the next big thing is still the TV. If the rumors prove to be true and Apple executes with TV no better than it did with the iPad,  this company will dominate the entertainment and consumer electronics industry much like Standard Oil and General Motors did in their industries.

The potential  impact of  a  ”real” TV from Apple cannot be overestimated. The iPhone, iPod, iPad were momentous, like hurricane Irene. Real Apple TV will be much more like the Great East Japan Earthquake and Tsunami.

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.

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