Apple execs not enthusiastic about 'unattractive' online print market

[AppleInsider]

While rumors have suggested Apple is courting print publications to deliver content on its anticipated tablet device, company executives recently said they see problems with the current business model.

Analyst Mike Abramsky took part in a client event this week hosted by RBC Capital Markets. He spoke with numerous Apple executives: Peter Oppenheimer, chief financial officer; Eddy Cue, vice president of iTunes and Internet Services; and David Moody, vice president of Worldwide Mac Marketing. The three gave some insight into Apple's current direction, and their thoughts on the company's current status in the market.

They reportedly said that Apple was not enthusiastic about the online book and newspaper market, which was said to have an "unattractive industry structure."

A report earlier this week said that some publishers were not enthusiastic about the Amazon Kindle, because the hardware maker reportedly wanted to keep 70 percent of revenue from content sold on the device. That same report suggested that Apple would take a different direction and employ its current App Store business model, where it keeps only 30 percent of sales.

Apple in the past has been known to mislead just before a new product arrives. The company suggested it had no interest in the complex phone business model just before it debuted the iPhone, and it also said it could not create a sub-$1,000 Mac before the $400 Mac mini was unveiled.

Recent reports have stated that Apple has been courting print publications to make their content available on its forthcoming tablet. The 10-inch, 3G connected touchscreen device is expected to debut in the first quarter of 2010.

While officials said this week that while the Apple TV is still a "hobby," they believe it is well-positioned to benefit as people migrate to the Web for their video-watching needs. The Cupertino, Calif., company indicated it is looking to do for video what it did for music.

"Video content is expected to be the next 'exploding' opportunity, but requires overcoming industry rights dysfunctionality, competing with other subsidies (cable box, video), and developing the right consumer 'offer,'" Abramsky said.

Apple on Thursday debuted the Apple TV 3.0 software update. It features a redesigned main menu that makes navigating content easier, and also allows users to view iTunes Extras and iTunes LP content on their TV.

Company officials are also reportedly unfazed by the recent launch of Windows 7. They see Microsoft's operating system upgrade as an opportunity for them to create Mac buying opportunities, for users who do not want to go through the Windows 7 upgrade process. Executives said they see plenty of opportunities for the Mac market share to grow, despite the lack of a sub-$1,000 laptop.

RBC Capital Markets has reiterated its $275 price target for AAPL stock.

[ View this article at AppleInsider.com ]

[myapplelove]

Very interesting article there Neil. To actually listen to the executives themselves instead of the various commentators and speculators.

[X38]

Apple TV will continue to be stuck in 'hobby' status until they add a DVR. Apple showed a great concept for a DVR in a patent application some time back - where is it already??

iTunes distribution of pre-recorded content may be an acceptable model for some aspects of TV viewing, but a big purpose of a DVR is to time shift live broadcasts, for which Apple currently has no good answer.

[Rot'nApple]

Originally Posted by AppleInsider

They reportedly said that Apple was not enthusiastic about the online book and newspaper market, which was said to have an "unattractive industry structure."

While Apple may not have been the first to release a news source, e-book reader, e-zine, e-newspaper & video capable tablet / slate type device to put side by side with the Kindle or Nook, when Apple does, the industry will then have a device with "panache" for the other companies to create their "Apple Killer" product!

[11thIndian]

Originally Posted by X38

Apple TV will continue to be stuck in 'hobby' status until they add a DVR. Apple showed a great concept for a DVR in a patent application some time back - where is it already??

iTunes distribution of pre-recorded content may be an acceptable model for some aspects of TV viewing, but a big purpose of a DVR is to time shift live broadcasts, for which Apple currently has no good answer.

While I agree that aTV doesn't serve the needs of live sports or news broadcast, I think DVR functionality is incompatible with the aTV mandate of pushing iTunes content.

In terms of purchased content I personally use aTV for movie rentals exclusively- and that's made it worthwhile for me. TV content won't be as attractive until it has either a rental price or subscription model. I'm less inclined to re-watch a TV show even more than a movie- so "purchasing" TV shows makes no sense for me. I'm sure this functionality has been held back by rights issues with cable providers.

[DanielSW]

Apple's App Store has enjoyed its relative sweet spot due in part to what seems to me to be a fair 70-30 split of proceeds.

If this type of approach is applied to a new publishing effort centered around an Apple tablet, that would yet again serve to set yet another complacent industry on its ear and result in yet another flood of new business and activity under the broadening Apple umbrella.

If the competition doesn't already see this happening, they soon will, and their desperate hands already weary from all the wringing and white knuckles, will have no rest for the foreseeable future.

[naman34]

Well I think its obvious that apple TV is seriously just a hobby. Well actually it seems like a means to an end. Seems like its just a way that apple can support video on itunes. I guess maybe for the tablet, or to make something big out of video later. Something not yet developed i guess.

[Roc Ingersol]

Why the Apple TV is subservient to, and reliant on, a computer running iTunes elsewhere on the network is beyond me. When they re-envision the Apple TV as a stand-alone home media server, to which all other devices sync, they'll be serious.

[thespaz]

Apple makes a sub-$1,000 laptop!

The MacBook is $999 :-)

[pmz]

Just like everything Apple touches, the online print media magazine thingamajig will be re-invented with new interest being generated.

Picture: iTunes LP, really the starting point, the model, for whats to come. Magazines and "News" Publications will be able to design interactive interfaces that add more depth to the same content. Getting a new digital issue of "Magazine X Y & Z" will somehow be interesing, juicy, and fun. Every new issue will contain tons of new page styles, media, graphics....lots and lots of stuff to touch. And the advertising, OH the advertising. Ads don't get into your brain ANY FASTER than seeing and touching them.

[AppleStud]

Originally Posted by Roc Ingersol

Why the Apple TV is subservient to, and reliant on, a computer running iTunes elsewhere on the network is beyond me. When they re-envision the Apple TV as a stand-alone home media server, to which all other devices sync, they'll be serious.

you do not need an iTunes-enabled computer to run an aTV. If you want to sync your existing video collection from your computer, that's one thing. However, you're more than capable of downloading and storing content directly to the device.

[Dlux]

That article seemed to ramble all over the place. Why wasn't Apple enthusiastic about the online print market?

[xwiredtva]

Wasn't the same thing said about iTunes... And what place does it currently hold for music distribution?

Your welcome to be unhappy about it. But YOUR shareholders will scream if your not on it.

[801]

Originally Posted by Dlux

That article seemed to ramble all over the place. Why wasn't Apple enthusiastic about the online print market?

The same reason that they want to do to video what they did for music:

People don't read books anymore. ( Present company excluded)

[JeffDM]

Originally Posted by pmz

Just like everything Apple touches, the online print media magazine thingamajig will be re-invented with new interest being generated.

Picture: iTunes LP, really the starting point, the model, for whats to come. Magazines and "News" Publications will be able to design interactive interfaces that add more depth to the same content. Getting a new digital issue of "Magazine X Y & Z" will somehow be interesing, juicy, and fun. Every new issue will contain tons of new page styles, media, graphics....lots and lots of stuff to touch. And the advertising, OH the advertising. Ads don't get into your brain ANY FASTER than seeing and touching them.

I think we have a name for that idea: web pages.

PDFs can be interactive and contain flash, including video and audio. Not going to be very power efficient for portable devices.

Originally Posted by xwiredtva

Wasn't the same thing said about iTunes... And what place does it currently hold for music distribution?

Your welcome to be unhappy about it. But YOUR shareholders will scream if your not on it.

I think all the big shareholders will understand, the little ones that might be less likely to understand how complex these businesses can be, they can sell to people that do understand. I personally think all this is a misdirection anyway, Apple will get into it when they think the time is right.

[Wiggin]

Originally Posted by X38

Apple TV will continue to be stuck in 'hobby' status until they add a DVR. Apple showed a great concept for a DVR in a patent application some time back - where is it already??

iTunes distribution of pre-recorded content may be an acceptable model for some aspects of TV viewing, but a big purpose of a DVR is to time shift live broadcasts, for which Apple currently has no good answer.

Adding a DVR to AppleTV would be an even bigger "bag of hurt" than adding blu-ray to Macs. There are so many different sources for programming, there is no way to make a single device that would work for everyone. And for many people (ie, satellite subcribers), there is no way to make a 3rd party DVR of any kind.

Recording over-the-air signals is fairly straight forward, but how many people use antennas? You could also create a device that captures the unencrypted basic cable channels. But those channels seldom include HD channels, and the cable companies are encrypting more and more of those channels every day. There are CableCards that will allow you to tune into the encrypted channels, but there are multiple versions of CableCards and getting them working properly is tricky.

The 2.0 CableCards (aka True2Way) may finally clean up that mess, but it's still to early to tell. And you'll always be at the whim of the cable companies who have complete control over that standard. Also, the last draft of True2Way I looked at included a requirement that you allow the cable companies to install their software on your 3rd party box to enable the card. Think Apple would ever allow that? And even if they did, would YOU want that?

And this still leaves satellite subscribers out in the cold, and we haven't even begun to talk about how all that would work outside of the US. You'd also have no way of transferring your recorded TV to your computer or iPod for portable viewing. All-in-all, adding a DVR to Apple TV would be a god-awful mess.

The only thing that would elevate the AppleTV out of hobby status is getting more online content, primarily via iTunes (because Apple would hesitate to add too many options that compete with iTunes sales). Subscription or rental TV shows (which are cheaper than the current for-purchase prices) would be a good start. Expanding the currently pathetic HD movie library is also desperately needed.

And I still maintain that adding an optical drive (even if it's only DVD, not blu-ray) would make purchasing an AppleTV a much more attractive option. The future of the iTunes movie business is in movie rentals, not movie sales. So letting me play my currently owned DVDs would be a value added feature with minimal impact to iTunes Store business.

Wait, what was this thread about? Oh, yes, the online print market...

[christopher126]

Just thank all the blood-sucking lawyers for making the print, TV, music and movie industries dysfunctional with their archaic contracts and rights! The lawyers are going to 'protect' them right out of business!

In this day and age if you find yourself in a situation where you 'need' an attorney, you are already 'screwed.'

[anantksundaram]

Originally Posted by AppleInsider

"Video content is expected to be the next 'exploding' opportunity, but requires overcoming industry rights dysfunctionality, competing with other subsidies (cable box, video), and developing the right consumer 'offer,'" Abramsky said.

The most serious constraint with video is the quality and fatness of the pipes - cable, wireless, satellite, etc. Unless these get to the next level, there will be no 'explosion' other than for the Youtube/Hulu variety.

Originally Posted by AppleInsider

RBC Capital Markets has reiterated its $275 price target for AAPL stock.

I am an Apple optimist, but this is serious nosebleed territory, given growth opportunities already perhaps baked into the current price.

[djames42]

Originally Posted by 11thIndian

While I agree that aTV doesn't serve the needs of live sports or news broadcast, I think DVR functionality is incompatible with the aTV mandate of pushing iTunes content.

In terms of purchased content I personally use aTV for movie rentals exclusively- and that's made it worthwhile for me. TV content won't be as attractive until it has either a rental price or subscription model. I'm less inclined to re-watch a TV show even more than a movie- so "purchasing" TV shows makes no sense for me. I'm sure this functionality has been held back by rights issues with cable providers.

I agree about DVR functionality but for different reasons. I use my Apple TV in lieu of a cable TV subscription because it's cheaper. I believe that for non-channel surfers who have a list of programs they frequent, multiple season passes ends up saving a lot of money over $1200/year to Comcast... I still maintain a $14/month limited basic subscription for local news and network programming.

[Dlux]

Originally Posted by anantksundaram

The most serious constraint with video is the quality and fatness of the pipes - cable, wireless, satellite, etc. Unless these get to the next level, there will be no 'explosion' other than for the Youtube/Hulu variety.

Don't forget the HUGE online video segment that Apple has chosen to not support...

(Not that it isn't hinted at in many of the 'explicit' offerings already being sold in the iTMS.)

[DaveGee]

Originally Posted by myapplelove

Very interesting article there Neil. To actually listen to the executives themselves instead of the various commentators and speculators.

I'm not sure I understand you're comment... After rereading this article several times I don't see anything in it that could pass for substance...

Originally Posted by AppleInsider

While rumors have suggested Apple is courting print publications to deliver content on its anticipated tablet device, company executives recently said they see problems with the current business model.

Okay "company executives recently said they see problems with the current business model" this is one item that could pass for news since I don't remember too many instances where Apple employees have been directly sourced to have made any comments WRT the publication industry.

Originally Posted by AppleInsider

Analyst Mike Abramsky took part in a client event this week hosted by RBC Capital Markets. He spoke with numerous Apple executives: Peter Oppenheimer, chief financial officer; Eddy Cue, vice president of iTunes and Internet Services; and David Moody, vice president of Worldwide Mac Marketing. The three gave some insight into Apple's current direction, and their thoughts on the company's current status in the market.

They reportedly said that Apple was not enthusiastic about the online book and newspaper market, which was said to have an "unattractive industry structure."

Okay this is just saying what was already said in the introduction...

Originally Posted by AppleInsider

A report earlier this week said that some publishers were not enthusiastic about the Amazon Kindle, because the hardware maker reportedly wanted to keep 70 percent of revenue from content sold on the device.

While this has no real Apple related information a link to said report might have been helpful.

Originally Posted by AppleInsider

That same report suggested that Apple would take a different direction and employ its current App Store business model, where it keeps only 30 percent of sales.

Now this has some information that is related to Apple however this did not come from the Apple representatives interviewed but the mysterious report mentioned above.

Originally Posted by AppleInsider

Apple in the past has been known to mislead just before a new product arrives. The company suggested it had no interest in the complex phone business model just before it debuted the iPhone, and it also said it could not create a sub-$1,000 Mac before the $400 Mac mini was unveiled.

Where did this come from? Did I miss the part where one or all of the three Apple executives flat out denied the existence of a tablet that would act as an ebook reader?

Originally Posted by AppleInsider

Recent reports have stated that Apple has been courting print publications to make their content available on its forthcoming tablet. The 10-inch, 3G connected touchscreen device is expected to debut in the first quarter of 2010.

Old news randomly thrown in but okay...

Originally Posted by AppleInsider

While officials said this week that while the Apple TV is still a "hobby," they believe it is well-positioned to benefit as people migrate to the Web for their video-watching needs. The Cupertino, Calif., company indicated it is looking to do for video what it did for music.

Wait... was this intended to be included in a different story?!?! I though we were talking about the ebook oriented tablet and print media but somehow we've jumped the tracks and landed on AppleTV speculation.

Originally Posted by AppleInsider

"Video content is expected to be the next 'exploding' opportunity, but requires overcoming industry rights dysfunctionality, competing with other subsidies (cable box, video), and developing the right consumer 'offer,'" Abramsky said.

Apple on Thursday debuted the Apple TV 3.0 software update. It features a redesigned main menu that makes navigating content easier, and also allows users to view iTunes Extras and iTunes LP content on their TV.

We're still on the AppleTV train-tracks, which is fine except it has nothing to do with the subject of this story.

Originally Posted by AppleInsider

Company officials are also reportedly unfazed by the recent launch of Windows 7. They see Microsoft's operating system upgrade as an opportunity for them to create Mac buying opportunities, for users who do not want to go through the Windows 7 upgrade process. Executives said they see plenty of opportunities for the Mac market share to grow, despite the lack of a sub-$1,000 laptop.

Windows 7?!?! Sub-grand laptops??! Now this is getting even stranger...

Originally Posted by AppleInsider

RBC Capital Markets has reiterated its $275 price target for AAPL stock.

[ View this article at AppleInsider.com ]

Ummm... what happened to the content of this story?!!? All we got that wasn't either old news or really random bit of Apple history thrown in was this:

They reportedly said that Apple was not enthusiastic about the online book and newspaper market, which was said to have an "unattractive industry structure."

However it's still not clear if someone at Apple said "unattractive industry structure" or some random analyst/reporter/man-on-the-street.

The rest was pure filler...

[Gazoobee]

Originally Posted by 11thIndian

While I agree that aTV doesn't serve the needs of live sports or news broadcast, I think DVR functionality is incompatible with the aTV mandate of pushing iTunes content....

I totally agree with this.

A better fit would be adding an optical drive or the ability to rip optical media with iTunes. I'm not saying this will ever happen as everyone knows the huge legal power lined up to stop people from moving their purchased optical content to the hard drive, but conceptually it makes more sense.

I find most people who buy the AppleTV are the same people who previously purchased large amounts of content on physical media. Once you get the AppleTV you wish all your stuff was digital but the legal and technical hassles of converting it all are the problem.

[vinney57]

The stuff about print media is interesting. I suspect its a negotiating position - as in, 'Guys, you need us. Otherwise you're screwed. Now quit messing about'. Apple execs never say anything that isn't pre-programmed for effect.

[DaveGee]

Originally Posted by Wiggin

The 2.0 CableCards (aka True2Way) may finally clean up that mess, but it's still to early to tell. And you'll always be at the whim of the cable companies who have complete control over that standard. Also, the last draft of True2Way I looked at included a requirement that you allow the cable companies to install their software on your 3rd party box to enable the card. Think Apple would ever allow that? And even if they did, would YOU want that?

Agreed on all points... Apple DVR isn't going to happen... the time for that has passed. When TV and cable tv were a simpler world (pre-cable card) it could have been a reality but not now... too many mountains to climb and finally if the device was to be created it would be relegated to the lowest common denominator... CableCARD and that would rule out...

- Anyone but the US (at last count a WHOLE LOT of people)
- Anyone in the US with satellite
- Anyone in the US with fios* or other near-cable providers

* Unless fios is FCC mandated to support CableCARDs and I don't think they are.

Finally CableCARD 2.0 is DEAD DEAD DEAD DEAD!

Nobody is going to embrace it for the exact reason you pointed out... It's a trojan horse. It dictates that the cable provider would have the ability to replace the UI designed in the CE device (aka AppleTV, TiVO etc) with a monstrosity of their own creation.

Would you EVER in a million years think that TiVO would let cable companies $^(% with a UI that has proven so successful with it's very loyal customers!? An even bigger laugh would you ever think Apple would let some cable franchise put THIER FACE on Apples device?! Yea... perhaps when groves of grapefruit trees spontaneously cover the south pole.

So CableCARD 2.0 is never going to happen and in the end who suffers? The cable companies and only the cable companies. We don't hear any screams from the general public about not being able to access over priced and dated PPV content and the rest of what's only available via 2Way is for the most part useless crap... The cable industry isn't exactly known for it's creative visions.

Tho, think for just a minute if Apple WERE to run a cable franchise... could you imagine what they'd be offering that would demand 2way communications? Perhaps then people would be screaming for 2Way support.

Anyway.. The concept of an Apple PVR ever existing should be surgically removed from everyones mind at this point... That time has come and gone I'm afraid and I take no joy in saying it since I was a diluted hopeful for a very long time.

[cmf2]

Originally Posted by X38

Apple TV will continue to be stuck in 'hobby' status until they add a DVR. Apple showed a great concept for a DVR in a patent application some time back - where is it already??

iTunes distribution of pre-recorded content may be an acceptable model for some aspects of TV viewing, but a big purpose of a DVR is to time shift live broadcasts, for which Apple currently has no good answer.

DVR's and HD are mostly a no go right now (unless you buy direct from your service provider). I have yet to see a video card with HDMI in. Instead of HD being the next big thing in video, it has become the next big thing in DRM. Of course it makes perfect sense to punish your customers because they are paying you and not downloading the HD content freely available over the internet instead. Although, I'm sure Apple could negotiate some sort of solution if they wanted to.

What would really take Apple TV out of hobby status would be a SDK and maybe an app store. Or perhaps some live streaming services instead of only downloads, which could make it a cable alternative. Watching TV is often an impulse thing, there is nothing impulsive about waiting for a download and it doesn't work at all for time sensitive programs such as sports/news.

For example, being Canadian, I love my hockey. Nhl.com offers live streaming of every game on their website for $199. Put that in Apple TV and I would see immensely more value in it. I also love 24, but I'm not going to wait a day to watch it as the current iTunes setup requires. If they offered streaming of the current episode on the day it comes out (and downloading later on), I would be much more inclined to purchase the show through iTunes. I don't know if Apple could pull off something like that, but Apple TV would be immensely popular if it could provide an alternative to cable (with no real downside). Of course, the day internet video really takes off and cable dies, internet bills will be increased to account for the loss of cable revenue and the increased bandwidth required.

[DaveGee]

Originally Posted by vinney57

The stuff about print media is interesting. I suspect its a negotiating position - as in, 'Guys, you need us. Otherwise you're screwed. Now quit messing about'. Apple execs never say anything that isn't pre-programmed for effect.

But you have to wonder...


Could you imagine the people in the music business hearing Apple dictate to them how to save their empire? A 2nd rate computer company that was 'bailed out' by Microsoft and they are telling us how to run our business? It certainly took a great deal of salesmanship AND showmanship to pull it off... That I'm sure of.

Then could you imagine the people in the cellular industry hearing Apple, a computer company / wanna-be music seller... say that every phone they've been selling till now has been utter crap and they have a much better offering and can build a phone people will flock to.

Now while all this is going on Apple is trying to convince the Movie industry that they know how to run their business too... and thanks in part to the Music industry crying how Apple (the company that saved them) is too powerful... that things haven't gone so well on this front.

Finally Apple now has been making cold-calls to the Print media....

Really amazing if you stand back and take a good hard look at it... if they can pull off the print media and bring that industry back from the brink then my question is what's next? The broadcast industry??

[solipsism]

Originally Posted by DanielSW

Apple's App Store has enjoyed its relative sweet spot due in part to what seems to me to be a fair 70-30 split of proceeds.

If this type of approach is applied to a new publishing effort centered around an Apple tablet, that would yet again serve to set yet another complacent industry on its ear and result in yet another flood of new business and activity under the broadening Apple umbrella.

If the competition doesn't already see this happening, they soon will, and their desperate hands already weary from all the wringing and white knuckles, will have no rest for the foreseeable future.

I think it what is happening, too. Print magazines that have ad supported websites are struggling. The ones with paid access are struggling. I think a device for the kitchen table, living room, train, wherever for read digital media like you’d read a magazine or newspaper is what is needed to save their businesses. With Amazon charging so much and these companies losing so much money—Time is rumours to be doing massive layoffs soon—they may play ball with whatever light at the end of the tunnel Apple has to offer. The Kindle surely doesn’t offer that.

PS: I was against the idea of the tablet Mac because the only mockups had Mac OS X pasted to them. Something that clearly can’t work. Then later mockups had iPhone OS pasted to it. Something that won’t work for other reasons. Any Photoshop experts here want to envision an ideal Mac tablet UI?

Originally Posted by Roc Ingersol

Why the Apple TV is subservient to, and reliant on, a computer running iTunes elsewhere on the network is beyond me. When they re-envision the Apple TV as a stand-alone home media server, to which all other devices sync, they'll be serious.

They don’t. Since adding iTS support and YouTube and Flickr, you don’t need to ever connect to or sync with a Mac.

The one requirement is that it has to be connected to a TV to work. This seems obvious as it has it has no built-on display, but I know one person that want to use it to control and play music from their iPhone/Touch AppleTV remote. For that, no TV needs to be added.

[anantksundaram]

Originally Posted by DaveGee

But you have to wonder......... my question is what's next? The broadcast industry??

The education industry. Then, Google.

[JeffDM]

Originally Posted by solipsism

I think it what is happening, too. Print magazines that have ad supported websites are struggling. The ones with paid access are struggling. I think a device for the kitchen table, living room, train, wherever for read digital media like you’d read a magazine or newspaper is what is needed to save their businesses. With Amazon charging so much and these companies losing so much money—Time is rumours to be doing massive layoffs soon—they may play ball with whatever light at the end of the tunnel Apple has to offer. The Kindle surely doesn’t offer that.

PS: I was against the idea of the tablet Mac because the only mockups had Mac OS X pasted to them. Something that clearly can’t work.

I don't follow. What would be the specific problems? Maybe there are some issues that make it less than ideal, but you can use a tablet with Mac OS X, it does work. There is a third party tablet Mac, it's not multitouch though.

The one requirement is that it has to be connected to a TV to work. This seems obvious as it has it has no built-on display, but I know one person that want to use it to control and play music from their iPhone/Touch AppleTV remote. For that, no TV needs to be added.

That's a slick idea, I take it it doesn't work?

[anonymouse]

Originally Posted by christopher126

In this day and age if you find yourself in a situation where you 'need' an attorney, you are already 'screwed.'

My guess is that if you ever find yourself in a situation where you need an attorney, you'll change your view very quickly.

[JeffDM]

Originally Posted by anonymouse

My guess is that if you ever find yourself in a situation where you need an attorney, you'll change your view very quickly.

This is a bit off topic, but I wonder about that. What's the billing rate on a typical attorney anyways? How many people can afford a week's worth of their time? Even above that, even if you could afford that, how many people would rather they use that money for something else instead?

[vinney57]

Originally Posted by DaveGee

But you have to wonder...


Could you imagine the people in the music business hearing Apple dictate to them how to save their empire? A 2nd rate computer company that was 'bailed out' by Microsoft and they are telling us how to run our business? It certainly took a great deal of salesmanship AND showmanship to pull it off... That I'm sure of.

Then could you imagine the people in the cellular industry hearing Apple, a computer company / wanna-be music seller... say that every phone they've been selling till now has been utter crap and they have a much better offering and can build a phone people will flock to.

Now while all this is going on Apple is trying to convince the Movie industry that they know how to run their business too... and thanks in part to the Music industry crying how Apple (the company that saved them) is too powerful... that things haven't gone so well on this front.

Finally Apple now has been making cold-calls to the Print media....

Really amazing if you stand back and take a good hard look at it... if they can pull off the print media and bring that industry back from the brink then my question is what's next? The broadcast industry??

The US public health industry?

I also like the education industry comment.

There is going to be enormous wailing and gnashing of teeth when Apple end up as the 'gatekeeper to all media'.

[solipsism]

Originally Posted by JeffDM

I don't follow. What would be the specific problems? Maybe there are some issues that make it less than ideal, but you can use a tablet with Mac OS X, it does work. There is a third party tablet Mac, it's not multitouch though.

It’s the same problem with all the tablets out today. They use a desktop OS for interaction. An OS that was designed to have a physcial keyboard and some sort of mouse/trackpad. To utilize the Modbook or other tablet you really need a stylus. This is not ideal. To make a tablet OS feasible for the masses you need a hybrid OS that is designed for a 10” screen (not a 3.5” screen) —AND— is designed to have multi-touch interaction with fingers.

The on-screen keyboard on the Modbook is far from ideal. You can’t hold it with one or two hands and type on it (regardless of the need for a stylus). You have to cradle the device on your forearm so you have a hand free for typing on a typical QWERTY style keyboard. I think the best action is to hold it on both sides near the bottom and use two thumbs for typing. Similar to how you type on the iPhone, but with the keyboard seperated to both sides of the device and arched to allow your thumbs to access all keys without strain.

The pic on the left is a prototype WinCE-based UMPC and the image on the right is a patent from Apple.

• image: http://www.blogcdn.com/www.engadget....l_keyboard.jpg

This is only ideal for holding the device. if laid on a table or lap a typical virtual keyboard would seem to be ideal. It would be easy for such a device to sense the orientation your hand placement, or simply allow you to choose the right keybaord.

Another major issue is all the small elements in Mac OS X that a mouse pointer can easily access with precision, but your fingers cannot. Apple already went to the far end with the iPhone OS, so going back halfway for a tablet OS shouldn’t be a big deal.

That's a slick idea, I take it it doesn't work?

Nope, at least from what I’m told. I guess the component cables must auto-sense, too. I’m sure there is away to trick it, but I am not going to bother with that sense I don’t have to worry about it.

It would also be nice to remotely rent or buy videos on your iPhone while you are out and have it queued waiting for you when you get home. This also not affect me as my internet connection is fast enough, but I think that more HD rentals and purchases might be had if they the customers with slower broadband connections didn’t have to wait when they get in front of their AppleTV and if they could make impulsive buys. I know I use Netflix queuing all the time when I’m out and see our hear something that makes me want to get it immediately.

[Mister Snitch]

Originally Posted by xwiredtva

Wasn't the same thing said about iTunes... And what place does it currently hold for music distribution?

Yup. The model Apple can enable will be superior than anything that exists now. It will change everything, not just for Apple (which will absolutely clean up) but for many publishers, especially smaller, more nimble and innovative ones.

[mavfan1]

Originally Posted by DaveGee

I'm not sure I understand you're comment... After rereading this article several times I don't see anything in it that could pass for substance...
Okay "company executives recently said they see problems with the current business model" this is one item that could pass for news since I don't remember too many instances where Apple employees have been directly sourced to have made any comments WRT the publication industry.
Okay this is just saying what was already said in the introduction...
While this has no real Apple related information a link to said report might have been helpful.
Now this has some information that is related to Apple however this did not come from the Apple representatives interviewed but the mysterious report mentioned above.
Where did this come from? Did I miss the part where one or all of the three Apple executives flat out denied the existence of a tablet that would act as an ebook reader?
Old news randomly thrown in but okay...
Wait... was this intended to be included in a different story?!?! I though we were talking about the ebook oriented tablet and print media but somehow we've jumped the tracks and landed on AppleTV speculation.
We're still on the AppleTV train-tracks, which is fine except it has nothing to do with the subject of this story.
Windows 7?!?! Sub-grand laptops??! Now this is getting even stranger...
Ummm... what happened to the content of this story?!!? All we got that wasn't either old news or really random bit of Apple history thrown in was this:
However it's still not clear if someone at Apple said "unattractive industry structure" or some random analyst/reporter/man-on-the-street.
The rest was pure filler...

You're 100% right that this was a very poorly sourced and rambling article. Any journalism professor would have covered it in red ink, if they didn't throw it in the trash after the first few lines. Seriously AI, there no reason for such lazy writing. Give us links that back up your statements or at least clearly source them.

[JeffDM]

Originally Posted by solipsism

It’s the same problem with all the tablets out today. They use a desktop OS for interaction. An OS that was designed to have a physcial keyboard and some sort of mouse/trackpad. To utilize the Modbook or other tablet you really need a stylus. This is not ideal. To make a tablet OS feasible for the masses you need a hybrid OS that is designed for a 10” screen (not a 3.5” screen) —AND— is designed to have multi-touch interaction with fingers.

The on-screen keyboard on the Modbook is far from ideal. You can’t hold it with one or two hands and type on it (regardless of the need for a stylus). You have to cradle the device on your forearm so you have a hand free for typing on a typical QWERTY style keyboard. I think the best action is to hold it on both sides near the bottom and use two thumbs for typing.

I don't really think I can do the same with a notebook so well either though, hold it with one arm while typing or mousing with the other hand? Sounds pretty awkward.

[solipsism]

Originally Posted by JeffDM

I don't really think I can do the same with a notebook so well either though, hold it with one arm while typing or mousing with the other hand? Sounds pretty awkward.

It should be awkward because the OS and input methods weren’t designed for type of usage. A proper finger-based, multi-touch tablet needs to have a proper UI, not Mac OS X.

Even netbooks with 10” screens have UI problems despite having a keyboard and mouse because UI elements are too small to be as functional as on notebooks. The problem is obviously less severe as with a finger-based multi-touch device.

[Ireland]

Originally Posted by myapplelove

Very interesting article there Neil. To actually listen to the executives themselves instead of the various commentators and speculators.

You're foolish then. The only thing you can listen to really is product releases.

[myapplelove]

Originally Posted by Ireland

You're foolish then. The only thing you can listen to really is product releases.

By listening to I didn't mean taking them for granted or not taking them with a grain of salt. When you listen to insiders, execs and the like, you get a view of the workings and considerations of the companies, even a skewed one, unlike the often fanciful flights of commentators.

Product releases aren't physical presences that talk, you might mean people delivering keynotes about product releases...who knows what you mean, I would wager you probably don't either...In any case do you feel good about your self for throwing an insult at me after your completely missing the point.

[Ireland]

Originally Posted by myapplelove

Product releases aren't physical presences that talk,

Real innovations serve you brecky.