I expect Apple to make cell phones and tablets for the rest of my life... and remain profitable. If Apple never came out with another "new" category... they'd still be in business.
In contrast... ask RIM how their tablet effort turned out. They tried to go into a new product category... and failed miserably. Same for Palm/HP.
Plus... is Apple really "riding on the back" of categories that they defined?
As a consumer electronics company... Apple is already in computers, MP3 players, phones, tablets, and media and content delivery.
If the Apple TV rumors are true... that will be another category.
I can't think of much else... unless you mean game consoles, home appliances, car stereos and clock radios...
A better way to put it is that Apple should continue carving out and creating new markets through its pioneering spirit while maintaining its current strengths. The iPad and the iPhone were and are good cash cows. But when your business model requires that you bring shareholder value through consistent rises in quarterly earnings, you can't just stand still and expect a couple of products to keep growing in terms of sales. At some point, you can only sell so many iPads and iPhones to so many people. It's great that the smartphone and tablet markets are still maturing. But the biggest danger of standing still is running headlong a saturated market. I don't think this will happen for at least a few more years. But before that happens, Apple will probably consider other new product markets to enter. Apple TV could be one of them.
Apple needs a new product category. They can't ride on the back of the iPhone and iPad forever.
The iPhone and iPad get better and cheaper and the market gets bigger over time, this is a huge market. And yes, iTV will be another market. The 15" Air and a cheaper 13" Air will be interesting too.
A better way to put it is that Apple should continue carving out and creating new markets through its pioneering spirit while maintaining its current strengths. The iPad and the iPhone were and are good cash cows. But when your business model requires that you bring shareholder value through consistent rises in quarterly earnings, you can't just stand still and expect a couple of products to keep growing in terms of sales. At some point, you can only sell so many iPads and iPhones to so many people. It's great that the smartphone and tablet markets are still maturing. But the biggest danger of standing still is running headlong a saturated market. I don't think this will happen for at least a few more years. But before that happens, Apple will probably consider other new product markets to enter. Apple TV could be one of them.
I understand growth is important to corporations and shareholders... but so is selling a ton of products and making a ton of cash from those products.
Sony is having trouble selling TVs... LG and Motorola aren't making any money selling phones... aren't they in a little more danger than a company like Apple?
I guess what I'm asking is.... if Apple can't sit still and expect a couple of products to keep growing in terms of sales... what hope is there for everyone else?
Aren't the other guys expected to do just as much?
I understand growth is important to corporations and shareholders... but so is selling a ton of products and making a ton of cash from those products.
Sony is having trouble selling TVs... LG and Motorola aren't making any money selling phones... aren't they in a little more danger than a company like Apple?
I guess what I'm asking is.... if Apple can't sit still and expect a couple of products to keep growing in terms of sales... what hope is there for everyone else?
Aren't the other guys expected to do just as much?
I'd hate to sound condescending, but sadly, that's how corporations operate. Try reading some articles on the Wallstreet Journal to see what I mean. This isn't about having expectations too high. Apple operates on this model and is no exception to the rule, hence the trend toward churning out new products since the very first iPods and Macbooks were first introduced. It's reality. Otherwise, if we took your line of reasoning, Apple shouldn't have even developed the first iPhone or iPad. They should've just stuck with making iPods only. If they'd stuck with only iPods, many shareholders would've fled a very long time ago. But they haven't because they've had faith in Apple's ability to enter new markets. The iPod as we all know is a dying market of its own...but Apple has done a good job of recognizing that early on and establishing new markets to replace it.
I'd hate to sound condescending, but sadly, that's how corporations operate. Try reading some articles on the Wallstreet Journal to see what I mean. This isn't about having expectations too high. Apple operates on this model and is no exception to the rule, hence the trend toward churning out new products since the very first iPods and Macbooks were first introduced. It's reality. Otherwise, if we took your line of reasoning, Apple shouldn't have even developed the first iPhone or iPad. They should've just stuck with making iPods only. If they'd stuck with only iPods, many shareholders would've fled a very long time ago. But they haven't because they've had faith in Apple's ability to enter new markets. The iPod as we all know is a dying market of its own...but Apple has done a good job of recognizing that early on and establishing new markets to replace it.
I'm not suggesting that Apple stops making new products. Nor am I saying Apple is perfectly fine sticking to their current course.
I was just asking what else can they do? We think they are gonna break into the TV business. But, the TV business is pretty much a commodity right now. Hopefully Apple will put their unique spin on it, leveraging their existring iTunes media store.
Other than TV... where else can a consumer electronics company go?
And like I said before... if Apple must continue to break into new markets in order to stay successful... doesn't everybody else?
We know Apple is the king of reinventing themselves... what hope is there for everyone else?
I don't think smartphone sales really impact GPS sales, for one. I've seen one person use his phone as a GPS in his car, it was a total pain in the ass. I use mine sometimes, but I also have a regular GPS. The data usage, the battery drain (even when plugged in), the small screen size and the risk of an incoming call all make the phone a poor car GPS right now.
Well, I don't look into other people's cars, but I do know that I use my iPhone as a GPS, and it's great! I use the MotionX app, which is $1, and $25 for voice for a year. I hook it up to an adapter I installed, by Peripheral Electronics, which used to play my iPod thru the stereo. They are constantly improving it, and the voice directions means I never have to look at the screen, though the screen view is good. It's as large as those old 3.5" GPS screens, but it's far higher res, than those old QVGA things.
I don't get battery drain since it's connected, and the data use is minimal. And, incoming calls fade out iTunes just like you'd expect. I just don't see the downside at all. It's far better than any GPS I've seen anyone else use, though I admit I haven't seen that many, since I usually do the driving!
I used to have a built-in GPS in my BMW back when it costs $2000, and used CDs, and it was fine, but the price makes it a non-starter, when Garmins and TomToms are so cheap. But, like P&S cams, you just don't feel you need it when you have an iPhone. I don't worry about having to hide it in case of thieves smashing my window, since I always take my phone with me.
I've used EDGE in China on China Mobile. It's fine. The signal is incredibly strong even in the countryside. I don't want to know how many watts their towers are transmitting! And, throughput is not bad considering how slow DSL is in most homes. Most people are used to slower internet speeds to begin with.
I'd hate to sound condescending, but sadly, that's how corporations operate. Try reading some articles on the Wallstreet Journal to see what I mean. This isn't about having expectations too high. Apple operates on this model and is no exception to the rule, hence the trend toward churning out new products since the very first iPods and Macbooks were first introduced. It's reality. Otherwise, if we took your line of reasoning, Apple shouldn't have even developed the first iPhone or iPad. They should've just stuck with making iPods only. If they'd stuck with only iPods, many shareholders would've fled a very long time ago. But they haven't because they've had faith in Apple's ability to enter new markets. The iPod as we all know is a dying market of its own...but Apple has done a good job of recognizing that early on and establishing new markets to replace it.
I don't think you can learn too much from reading the WSJ. All of those companies are trailing Apple, not leading it.
I don't think the original poster was saying that Apple wouldn't continue doing what it's doing, but that it would survive if it did not.
Comments
Why not?
I expect Apple to make cell phones and tablets for the rest of my life... and remain profitable. If Apple never came out with another "new" category... they'd still be in business.
In contrast... ask RIM how their tablet effort turned out. They tried to go into a new product category... and failed miserably. Same for Palm/HP.
Plus... is Apple really "riding on the back" of categories that they defined?
As a consumer electronics company... Apple is already in computers, MP3 players, phones, tablets, and media and content delivery.
If the Apple TV rumors are true... that will be another category.
I can't think of much else... unless you mean game consoles, home appliances, car stereos and clock radios...
A better way to put it is that Apple should continue carving out and creating new markets through its pioneering spirit while maintaining its current strengths. The iPad and the iPhone were and are good cash cows. But when your business model requires that you bring shareholder value through consistent rises in quarterly earnings, you can't just stand still and expect a couple of products to keep growing in terms of sales. At some point, you can only sell so many iPads and iPhones to so many people. It's great that the smartphone and tablet markets are still maturing. But the biggest danger of standing still is running headlong a saturated market. I don't think this will happen for at least a few more years. But before that happens, Apple will probably consider other new product markets to enter. Apple TV could be one of them.
Apple needs a new product category. They can't ride on the back of the iPhone and iPad forever.
The iPhone and iPad get better and cheaper and the market gets bigger over time, this is a huge market. And yes, iTV will be another market. The 15" Air and a cheaper 13" Air will be interesting too.
A better way to put it is that Apple should continue carving out and creating new markets through its pioneering spirit while maintaining its current strengths. The iPad and the iPhone were and are good cash cows. But when your business model requires that you bring shareholder value through consistent rises in quarterly earnings, you can't just stand still and expect a couple of products to keep growing in terms of sales. At some point, you can only sell so many iPads and iPhones to so many people. It's great that the smartphone and tablet markets are still maturing. But the biggest danger of standing still is running headlong a saturated market. I don't think this will happen for at least a few more years. But before that happens, Apple will probably consider other new product markets to enter. Apple TV could be one of them.
I understand growth is important to corporations and shareholders... but so is selling a ton of products and making a ton of cash from those products.
Sony is having trouble selling TVs... LG and Motorola aren't making any money selling phones... aren't they in a little more danger than a company like Apple?
I guess what I'm asking is.... if Apple can't sit still and expect a couple of products to keep growing in terms of sales... what hope is there for everyone else?
Aren't the other guys expected to do just as much?
I understand growth is important to corporations and shareholders... but so is selling a ton of products and making a ton of cash from those products.
Sony is having trouble selling TVs... LG and Motorola aren't making any money selling phones... aren't they in a little more danger than a company like Apple?
I guess what I'm asking is.... if Apple can't sit still and expect a couple of products to keep growing in terms of sales... what hope is there for everyone else?
Aren't the other guys expected to do just as much?
I'd hate to sound condescending, but sadly, that's how corporations operate. Try reading some articles on the Wallstreet Journal to see what I mean. This isn't about having expectations too high. Apple operates on this model and is no exception to the rule, hence the trend toward churning out new products since the very first iPods and Macbooks were first introduced. It's reality. Otherwise, if we took your line of reasoning, Apple shouldn't have even developed the first iPhone or iPad. They should've just stuck with making iPods only. If they'd stuck with only iPods, many shareholders would've fled a very long time ago. But they haven't because they've had faith in Apple's ability to enter new markets. The iPod as we all know is a dying market of its own...but Apple has done a good job of recognizing that early on and establishing new markets to replace it.
I'd hate to sound condescending, but sadly, that's how corporations operate. Try reading some articles on the Wallstreet Journal to see what I mean. This isn't about having expectations too high. Apple operates on this model and is no exception to the rule, hence the trend toward churning out new products since the very first iPods and Macbooks were first introduced. It's reality. Otherwise, if we took your line of reasoning, Apple shouldn't have even developed the first iPhone or iPad. They should've just stuck with making iPods only. If they'd stuck with only iPods, many shareholders would've fled a very long time ago. But they haven't because they've had faith in Apple's ability to enter new markets. The iPod as we all know is a dying market of its own...but Apple has done a good job of recognizing that early on and establishing new markets to replace it.
I'm not suggesting that Apple stops making new products. Nor am I saying Apple is perfectly fine sticking to their current course.
I was just asking what else can they do? We think they are gonna break into the TV business. But, the TV business is pretty much a commodity right now. Hopefully Apple will put their unique spin on it, leveraging their existring iTunes media store.
Other than TV... where else can a consumer electronics company go?
And like I said before... if Apple must continue to break into new markets in order to stay successful... doesn't everybody else?
We know Apple is the king of reinventing themselves... what hope is there for everyone else?
I don't think smartphone sales really impact GPS sales, for one. I've seen one person use his phone as a GPS in his car, it was a total pain in the ass. I use mine sometimes, but I also have a regular GPS. The data usage, the battery drain (even when plugged in), the small screen size and the risk of an incoming call all make the phone a poor car GPS right now.
Well, I don't look into other people's cars, but I do know that I use my iPhone as a GPS, and it's great! I use the MotionX app, which is $1, and $25 for voice for a year. I hook it up to an adapter I installed, by Peripheral Electronics, which used to play my iPod thru the stereo. They are constantly improving it, and the voice directions means I never have to look at the screen, though the screen view is good. It's as large as those old 3.5" GPS screens, but it's far higher res, than those old QVGA things.
I don't get battery drain since it's connected, and the data use is minimal. And, incoming calls fade out iTunes just like you'd expect. I just don't see the downside at all. It's far better than any GPS I've seen anyone else use, though I admit I haven't seen that many, since I usually do the driving!
I used to have a built-in GPS in my BMW back when it costs $2000, and used CDs, and it was fine, but the price makes it a non-starter, when Garmins and TomToms are so cheap. But, like P&S cams, you just don't feel you need it when you have an iPhone. I don't worry about having to hide it in case of thieves smashing my window, since I always take my phone with me.
And with EDGE as the maximum cellular data tech.
I've used EDGE in China on China Mobile. It's fine. The signal is incredibly strong even in the countryside. I don't want to know how many watts their towers are transmitting! And, throughput is not bad considering how slow DSL is in most homes. Most people are used to slower internet speeds to begin with.
I'd hate to sound condescending, but sadly, that's how corporations operate. Try reading some articles on the Wallstreet Journal to see what I mean. This isn't about having expectations too high. Apple operates on this model and is no exception to the rule, hence the trend toward churning out new products since the very first iPods and Macbooks were first introduced. It's reality. Otherwise, if we took your line of reasoning, Apple shouldn't have even developed the first iPhone or iPad. They should've just stuck with making iPods only. If they'd stuck with only iPods, many shareholders would've fled a very long time ago. But they haven't because they've had faith in Apple's ability to enter new markets. The iPod as we all know is a dying market of its own...but Apple has done a good job of recognizing that early on and establishing new markets to replace it.
I don't think you can learn too much from reading the WSJ. All of those companies are trailing Apple, not leading it.
I don't think the original poster was saying that Apple wouldn't continue doing what it's doing, but that it would survive if it did not.