god i wish i remember where i read it, but when asked about market-share, his (jobs) reply was "we have the same market-share in our industry that mercedes and BMWs have in theirs."
the implication seems to be, in order to gain market-share apple would have to "dumb" down the product. as long as they are profitable that's all that matters.
maximum profitability should be more important than market share to a stockholder, especially since increased market-share does not mean increased profits.
i think he should stay in his job as long as he's happy and successful at it. the danger is does the company continue to run smoothly if something happened to him? is the company set up to not miss a beat the day he decides to walk away?
No its not. I really believe Steve is an obstacle in reversing Apple's fortunes.
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This is about making sure that the Mac remains the computer for the rest of us, and trying to get that computer into the hands of the rest of us.
Bingo! Perhaps I wasn't clear enough. Getting the mac into the hands of the rest of us. Growth, marketshare, competitiveness are all factors that Jobs refuses to addresses if you want the mac to be the computer for the rest of us.
Marketshare isn't everything, especially if it can't translate into profitability. Take a look at HP, who's #1 or 2 in Personal computer sales for the last quarter.
The company met two goals for the quarter: profitability in its personal systems division, which includes PCs and handheld computers, and profitability in its enterprise system division, which includes servers and storage systems.
The personal systems division reported revenue of $6 billion, a 19 percent increase, with operating profit of $21 million.
Whereas Apple made operating profit of $31 million in their last financial quarter on revenue of $1.715 billion.
I'm not sure that Jobs hasn't addressed competitiveness... give it a little time and see what crops up in the consumer space now that they have something to work with, namely the G5, which will hopefully be put into the other products this year(i.e. better iMacs, Powerbooks, etc.)
Bingo! Perhaps I wasn't clear enough. Getting the mac into the hands of the rest of us. Growth, marketshare, competitiveness are all factors that Jobs refuses to addresses if you want the mac to be the computer for the rest of us.
I can't even fathom how he isn't addressing those things. Do you even know what Apple is up against? Network effects suck.
Apple can't just do what Windows OEMs do, because they're all competing to offer what amounts to exactly the same thing. Apple is offering something different, and worse, something that is widely perceived as been so different as to be threatening and incompatible and difficult (because, as I've heard so many times, you have to "learn a whole new operating system," and the benchmark for doing that is Windows). There is no silver bullet. There is no easy marketing solution. There is no single thing anyone can do to catapult the Mac's market share. Apple is pushing on all fronts - iTMS, iTunes and the iPod, remember, exist to sell Macs - and trying to ensure that when something does go their way, they're ready to take advantage of that opportunity. If there is anyone with the commitment to excellence, the charisma, and the sheer ability to keep thousands of brilliant engineers on task, it's Steve Jobs. Apple can't afford to not have that skill.
No matter what, though, it's going to be slow going. The Mac has been considered a non-option for almost a decade now.
Jobs is trying to increase marketshare, he's not dismissing it. I tend top think people who say that Jobs isn't concerned are those who think that cheaper = more market share. It's a lot different when you're at 2% worldwide marketshare or even 10% then when you have 30%. More advertising might help though.
Look how aggressively they're attacking the digital music market: software, hardware, etc. Apple's approach to the iPod, iTMS, iTunes, etc. shows what they're capable of, and how hard the company and Jobs is working at this stuff. The OS and computer market is another beast obviously, but I don't think we can declare Jobs inept at this point. 2003 was a year that I felt Apple got it going on nearly all cylinders. It still has to prove that its hardware can continue to compete on a consistent basis after so many years of lagging, its consumer desktop iMac is now long in the tooth relatively speaking, but really it had a banner year. In a way, the success with digital music buys Jobs more time for the rest of Apple.
Like I said before, I think Apple is focusing on growth in the American market first, where they are strongest. That makes sense to build on your strengths, but it is obviously frustrating for non-US customers or would-be customers.
Khung Fu Guy I have to wonder if you've been living under a rock.
Just because technological development might move at brake neck speed that doesn't translate over into how a market develops or how mindshare is gained.
Hell Jobs has well exceeded my expectations for what I think was possible in the time he's had.
Even only a few years ago, there were many poeple who if you mentioned Apple they would have said something like "didn't they go out of business?"
Compare that to now. In less than six months we've gone from trying to justify owning a Mac because they're so slow to arguing over whether they're as fast as the fastest PC. Lack of marketing? Well 6000 mentions through various media outlets around the world in the pre Xmas iPod frenzy ain't a bad bit of marketing IMO. Especially when it didn't cost a bean.
I think you're looking for Apple to employ traditional marketing models that they know won't work. They've got a lot more sophisticated than that.
Thanks Amorph for your great posts. You seem to get it. There is not one thing that is keeping Apple back. It's not just a cheap geek box, err, headless Mac, marketing, international presence, or any other single factor.
And I'd wager that marketing plays a bigger factor than the rest. It's a very real, very tangible thing. Apple currently doesn't sell a system that can't run the OS well, run the iApps well, provide Internet/e-mail/wireless/FireWire capability.
So spec-wise, the needs of probably over 90% of the general public are MORE than met.
I contend that the fact that so many (most, even) of that 90% currently NOT using Macs simply don't give the platform a passing thought when it comes time for their next purchase. Or worse, they sit and struggle with things, pissed off they can't make a cute video of their son's kindergarten graduation or whatever, BUT because they've never been exposed to Macs really (or their knowledge of them is of a little Mac Classic running System 7 or whatever in college a decade ago), they simply trudge ahead, accepting "oh, well this must be part of the deal I suppose...I wish this stuff wasn't such a pain-in-the-butt...".
Unless these people have a friend or co-worker preaching the Apple gospel to them on any sort of semi-regular basis, they're just going to go down to Best Buy or Circuit City and buy another HP or get on the phone to Gateway or Dell.
So I truly believe marketing - over the other things mentiond (headless this, Gthat, cache, bus, GPU, tablet this, mini-tower that, etc.) is the one major stumbling block or thing out there. I don't think the typical consumer just wanting to surf, e-mail, do the whole iTunes and digital camera thing is going to give a damn about bus and cache. They don't even know. It's what amorph said the other day: specs show us what is theoretically possible with this stuff, even though most people - particularly consumers and newbies - never even remotely approach those thresholds. They just want to plug the damn digital camera in, have it work without a bit pain-in-the-balls fuss, see a gallery, pick and choose, print what they want, e-mail a few, maybe make a slide show, etc.
Macs, OS X and the iApps - right out of the box - do EXACTLY those kinds of things...the kinds of things most people ostensibly buy a computer to do. But it doesn't do a bit of good if people are unaware of this, and the only people knowing about it are us.
This is proven to me again and again because whenever I show a PC-using friend or family member something on the Mac (currently, it's my Mom...she's got my old iMac DV and is slowly learning the Mac in anticipation of getting an eMac soon), their eyes TOTALLY widen and a smile or a "holy cow" type of comment never faiils to come from them. I show them the iApps, show them how cool and easy it all works, show them Safari's pop-up blocker, Mail's "Junk" filter, iCal, Sherlock, etc. and they dig it to no end and then start asking/calling ME about it all the time (I currently have 2, possibly 3, switches underway!).
If I, inarticulate dork that I can be, can make these lifelong PC users sit up and take notice and truly consider an all new, completely different platform, then I'd imagine that a well-made, snazzy and hard-hitting marketing campaign would do that on a much larger, more compelling scale.
Some people just need to be pointed and shown. Some people need to just be gently led by the hand (or physically turn their head to look in the other direction).
There's no true, technological-based reason on God's green earth that my Mom, your sister, amorph's neighbor, Matsu's co-workers, murbot's in-laws, etc. shouldn't - and couldn't - be using Macs.
Other than they simply don't even appear on their radar when the time comes to buy a new computer, or replace that 5-year-old Compaq in the family room. As is, they'll most likely just go buy another one because that's all they know or see.
If THAT'S not a marketing/awareness/PR issue (and with very real, true-life and meaningful consequences), then you tell me what is.
Well, overall marketshare is still down. But if you take institutions out of the mix, Apple is doing better. They're up with consumers. Leading the way with music, and they have a set of really attractive software technologies.
I look at Apple today and it sounds a lot like a certain company did a few years back, energetic, full of good ideas, delivering products and solutions, executing, getting noticed above a lethargic class of competitors -- that company was Microsoft!
I remember when they were the good guys bringing you a whole whack of products at a better price than anybody else. Maybe they were stealing with more originality back then, but they still delivered leaps and bounds ahead of other companies.
Fact is, Jobs is putting the pieces in place. Value added services like iTunes and iTMS/iPod, a great OS and cool apps for the rest of us, a network of stores, and professional multi-media credibility -- everything that goes with FCP, DVD studio pro, Shake, and the eventual release of "GarageBand Pro". If they ever find a way to stir in a reasonably priced headless machine and some real intense marketting, things will slowly turn around for them.
Microsoft has never been about creating solutions, it's always been about making a buck no matter how. That's the difference between Apple (Steve Jobs) and Microsoft. Even back in the days when Microsoft was "energetic", yes energetic about taking control of the market by using other peoples solutions, making a half workable copy of it and sell it for cheap. They have never been good guys and doubt they ever will be.
Some people just need to be pointed and shown. Some people need to just be gently led by the hand (or physically turn their head to look in the other direction).
iTunes, iTMS, iPod - big pointy arrows that all have Apple written on them.
Somewhere (?) recently I came across an article arguing that Apple's approach is really more about shifting (or maybe gently leading?) than switching. From this perspective, marketing moves they've made (or haven't made as the case may be) start to make more sense.
Maybe they didn't expect anyone to switch when they saw a switch ad. They'd have been mad if they thought they would. For one, the ads were pretty weak and PC users aren't going to just up and buy a Mac.
But what if the real purpose of the switch ads was effectively Apple waving it's arms in the air and going "Look at me, look at me". A consciousness raising exercise and nothing more. In fact, most of they're mainstream advertsing doesn't amount to much more than this.
Gradually people started to pay a little more attention. In the meantime, Apple continues to tidy the house (OS X, G5). Then they invited the neighbours over for a look around (iTunes for Windows). Not all will accept the invitation. Not all who visit will decide to stay. But some undoubtedly will and every little bit helps.
I guess what I'm trying to say is iTMS, iPod and iTunes for Win (and soon HPiPods in stores everywhere) are marketing. But a form that's designed to slowly burrow its way into people's minds.
Yeah, I understand - and appreciate - that. The whole iPod/iTunes/iTMS is a wonderful "ambassador" from our side, no doubt.
But is it enough? Does Apple just only dangle that in front of people and hope they take a further, deeper look? Some will, for sure.
But I don't know if I'm nuts on the idea of Apple's apparent sole marketing tool and tactic being the iPod/iTMS thing.
It doesn't speak to, or reflect, the larger experience. Just a small chunk of the pie. Albeit cool as can be, but the OS, the other iApps, .Mac, the hardware, etc. all get left in the cold for the few curious to seek out or learn on their own.
I don't think that's enough. I really don't.
I mean, look at all this attention Apple has been getting lately from JUST the whole iPod/iTMS thing. Imagine if the other aspects of Apple were promoted or marketed just 1/5th as much? I'm not asking for anything ridiculous here.
In any case, believe it or not, lots of people either aren't that in to music or, for whatever reason, have no interest in the iPod or buying music online from Apple. So putting all the eggs in the iPod/iTMS basket certainly isn't attracting or inflluencing those people.
It's everything, taken as a whole (with the OS being the prime component), that makes up the experience. I just find focusing on one small component to carry all the water a bit baffling. Again, Apple and Jobs kinda started up this whole notion of the "digital hub", but three years later, all these other companies are jumping on that wagon, borrowing the phrase and positioning themselves as the company to turn to for that stuff.
When we all know they're but a pale, half-ass imitation and knockoff.
Hell, people...the fact that iLife (and now iLife 04) comes FREE and PREINSTALLED on every new Mac cannot be ignored or understated. That is a HUGE benefit and trump card over the other side. Where else, on the PC side, are you going to get 5 programs of this quality and integration and gorgeous ease-of-use for free (or $49)?!?!
Nowhere! Hell, there needs to be a massive campaign on iLife 04 alone. And I'll be shocked if there isn't. And part of me, going on history, is already prepared to be let down and bummed at how Apple won't push it either.
I really don't even think a big marketing push is the problem. The problem is the popular perception of the Mac, and of how difficult it is to switch.
If you want to see what Apple marketing can do with a clean slate, look at iPod. There's no legacy there, there are no preconceptions except for Apple's rep for cool. There are no ads showing off the capabilities or the interface, just people dancing. And it went from zero to owning the market despite a top-of-the-line price faster than anyone would have guessed. And it's staying there, outselling Dell's answer by more than 10 to 1 despite the fact that the Dell is cheaper and has twice the claimed battery life, and despite the fact that it's offered by a much bigger vendor with serious name recognition.
Sorry, pscates, but I think Apple marketing kicks ass, and my proof is what they're able to do with something that doesn't come with a lot of baggage from 1995. Even OS X has benefited greatly from not being Mac OS.
The fact is that if they mention "Macintosh," people will flash back to those crashy proprietary things that got driven off the radar by Windows 95, or the Performa 5200s rotting in some elementary school. Macintosh are those things designers use that can't run office or use the internet. Apple is in the position where they need to offer new stuff that's so compelling that people will overcome all that resistance and set aside all those preconceptions and pick up an iBook. And that's what they're doing.
Bill Palmer notes on his site that with the HP deal, Apple is setting people up to buy a Mac with their next purchase, which could be 3 or more years from now. They've even got Carly Fiorina, the head of the #2 PC vendor, talking about eliminating the gap between Windows and Macintosh. This is gold, because it's not coming from Apple. It's coming from Hewlett-Packard. But even though we won't see the fruits of this for some time yet, it's the sort of thing that Apple has to do. They're up against barriers that will take a good long while to break down.
Funny. Messageboards are a persons "soapbox" to discuss. I'm intrigued by the posters point but other than a vague "Steve Jobs is holding Apple back" I have nothing.
1. How is he holding Apple back?
2. Who could do a better job?
3. What strategy could be used to affect the largest growth.
It's easy to say "replace xxx person" but a bird in the hand is better than two in a bush.
I'm convinced that Apple has been doing the right things. Success comes from preparaton and execution. The iPod was the WRONG product is what I thought when it was announced. I was wrong Steve was right. Perhaps that's why he's worth millions and I'm not.
iTMS was a bold decision that could have hurt Apple but the risk was ameliorated by the success. I'm buying an iPod late this year probably so there's one more sale coming.
Apple is moving in the right direction. 2004 has just begun but I promise you by the end of 2004 you will be singing a new tune. What's happened the last 2-3 years is merely setting up the infrastructure for future success. OSX is mature. Apple has the engineering talent on board and best of all they have direction. They realize that complacency will simply marginalze the platform as a slow erosion happens.
There simply is not CEO with the charisma and mystique. Bill Gates is nowhwere close. PocketPC, xbox, TabletPC....nothing groundbreaking there. Bill does his best when he's following Steves lead.
That's cool, amorph. But won't/can't good advertising and marketing crush those misconceptions and actually convey the good? That's the whole point, isn't it? Marketing and all?
And won't it spur even faster adoption? Why would we have to wait ANOTHER three years, when 2004 could be an even bigger, better year than 2003?
It's very cool that Carly and HP are in our corner, so to speak. That'll be great, but they're never going to do more the Mac than Apple themselves would or could. I mean, they're not going to flagwave for Apple to the detriment of HP tower and monitor sales.
Maybe I'm just a tad impatient. However, it has been a good two years since the whole "digital hub" thing and I just don't know why Steve's enthusiasm and RDF has to be limited strictly to us Mac users, once or twice a year. If all this stuff is good enough for us...
Again, are they purposely hanging EVERYTHING on the iPod? Sure seems so.
I'd like to think most everyone has the potential to get as excited and passionate about all the same crap we do (because it's "real" and not geeky or limited appeal...it's our lives: movies, photos, music, etc.), given a chance and shown what's what.
I just have a sad feeling that if we met back here in 2007 or so and Apple was still at 3% and, despite the iPod and iTMS, people still weren't using the Mac in as large numbers as we'd expect. And then to hear you or Eugene or someone say "we need to give it another few years, pscates, because...".
I'd jump out a window. One thing for sure: this is definitely the platform of "oh yeah, well just wait until...". Always seems like we're waiting: for the next Macworld, the next keynote, the next update, the next G-whatever, the next "there's just one more thing", the next rumor, the next OS X, the next commercial, the next retail opening, etc.
Apple is poised for growth now, but they can't rush it. Amorph pointed out all of the intangible aspects that are keeping Apple back. I can also vouch from personal experience that these are a significant problem. Every day I had to try and overcome these myths, but they are so well ingrained in people's mind. For a considerable number of people the last time they used a Mac was in the early 90's, if they ever used a Mac at all. 96% reject the Mac. There is not single silver bullet that is going to magically change these people's minds.
Now, that's not to say that 96% of people are going to continue to reject the Mac. Apple's consumer market share has doubled since Steve came back and I'm sure will continue to grow. This is likely attributable to ARS's, the digital hub, and former Mac users coming back into the fold, as well as other contributing factors. Similarly, the Pro community is in the early process of rebounding. However, most importantly Apple finally has a solution that is not going to be laughed at by IT departments. Sure, Apple is just dipping its toe in the pond, but it's the first time ever that Macs can be purchased for any department except "Art". OSX is a rock solid solution, despite its warts. With the continuing presence of worms, virii, and all that other nasty stuff that we don't have to deal with OSX becomes a more viable solution. In the same vein, Microsoft's new licensing terms are turning off customers. Apple's leadership has recognized this and hired some Oracle sales people, known in the industry as being some of the best, to continue their push into the corporate space.
We also have to recognize that Apple is breaking into markets that they never had a real presence in before, like the scientific community. Bio-tech is exploding and Apple not only recognized it early, but if actively engaging the community to find out what is lacking the Apple's current offering that is holding up adoption. They are also starting to have a product line for the super computing area. How many more $5 million sales does Apple need to start making a dent in their earnings?
But the one thing that shows that Apple is trying that they are now engaging their customer base in a conversation to see what is holding back adoption. This is so important. One quick personal example. I went to the Final Cut Pro User Group party/seminar at MacWorld Expo NYC last year. There were quite a few people from the FCP group there furiously taking notes on all the requests. Even taking the time to give out their telephone numbers so people could get back to them. This sort of engagement would never have happened before Steve came back. Apple has a humility now that is unprecedented.
I really don't even think a big marketing push is the problem. The problem is the popular perception of the Mac, and of how difficult it is to switch.
If you want to see what Apple marketing can do with a clean slate, look at iPod. There's no legacy there, there are no preconceptions except for Apple's rep for cool. There are no ads showing off the capabilities or the interface, just people dancing. And it went from zero to owning the market despite a top-of-the-line price faster than anyone would have guessed. And it's staying there, outselling Dell's answer by more than 10 to 1 despite the fact that the Dell is cheaper and has twice the claimed battery life, and despite the fact that it's offered by a much bigger vendor with serious name recognition.
Sorry, pscates, but I think Apple marketing kicks ass, and my proof is what they're able to do with something that doesn't come with a lot of baggage from 1995. Even OS X has benefited greatly from not being Mac OS.
The fact is that if they mention "Macintosh," people will flash back to those crashy proprietary things that got driven off the radar by Windows 95, or the Performa 5200s rotting in some elementary school. Macintosh are those things designers use that can't run office or use the internet. Apple is in the position where they need to offer new stuff that's so compelling that people will overcome all that resistance and set aside all those preconceptions and pick up an iBook. And that's what they're doing.
Bill Palmer notes on his site that with the HP deal, Apple is setting people up to buy a Mac with their next purchase, which could be 3 or more years from now. They've even got Carly Fiorina, the head of the #2 PC vendor, talking about eliminating the gap between Windows and Macintosh. This is gold, because it's not coming from Apple. It's coming from Hewlett-Packard. But even though we won't see the fruits of this for some time yet, it's the sort of thing that Apple has to do. They're up against barriers that will take a good long while to break down.
Thanks, that's what I was trying to say. Despite the fact they've done very little traditional marketing in Oz in the last year they're in the news again bigtime all on the back of the iPod (& remember that's without iTMS).
People have been saying for years if you can only get people to try Apple's software then they'll understand. But they can't hand over the OS 'cause that's the jewel in the crown. But they can give them a taster. Now the PC community is busy tasting Apple's iTunes, Apple's iPod, Apple's iTMS and soon Apple's thinly disguised HP iPod. And THAT'S a pretty big change from even a year ago, don't you think?
Give it time. Have faith. It might be subtle but it's also extremely elegant and will be far more effective in the long run.
That's cool, amorph. But won't/can't good advertising and marketing crush those misconceptions and actually convey the good? That's the whole point, isn't it? Marketing and all?
There are two problems, though: One is that all the marketing in the world doesn't help if your audience tunes out when they hear the brand name; and the other is that Apple can't advertise its capabilities without sounding exactly like Microsoft and Sony and Dell and everyone else.
There's a jazz saying that once you have someone in your car you can drive them wherever you want to. The trick is to get them in your car. Now, Apple offers things that nobody else has. Some things that nobody else can even claim to have. Once people are hooked, they're more willing to get in your car. And you know what? That's what the Apple Stores are mostly for. The best way to get acquainted with a Mac - to see what they really are like - is to sit down in front of one and play with it, or have a Mac user show off its capabilities.
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It's very cool that Carly and HP are in our corner, so to speak. That'll be great, but they're never going to do more the Mac than Apple themselves would or could. I mean, they're not going to flagwave for Apple to the detriment of HP tower and monitor sales.
Maybe not, but merely closing the gap between Windows and Macintosh is a direct shot at a huge obstacle confronting Apple: Compatibility. If Apple claims interoperatibility with Windows, that's one thing. If a Windows vendor claims it, that's another thing entirely. It helps that HP has, in fact, offered historically solid Mac support.
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Again, are they purposely hanging EVERYTHING on the iPod? Sure seems so.
Right now, sure. Can you blame them? It's a runaway hit. You'd want to latch as much onto it as you possibly could! Apple announced OS X, and the tech press and the geeks took notice. They announced the iApps and the Digital Hub, and so did all the PC vendors. They ran the Switch campaign, and nothing much happened. They announced iPod, and nobody has an answer for it, and people are hopping in Apple's car by the millions. With success like that, you don't ask too many questions.
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I'd like to think most everyone has the potential to get as excited and passionate about all the same crap we do (because it's "real" and not geeky or limited appeal...it's our lives: movies, photos, music, etc.), given a chance and shown what's what.
Sure, just like every PC has the potential to be as easy to use as a Mac. PCs are saddled with Windows; people are saddled with fear.
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I just have a sad feeling that if we met back here in 2007 or so and Apple was still at 3% and, despite the iPod and iTMS, people still weren't using the Mac in as large numbers as we'd expect. And then to hear you or Eugene or someone say "we need to give it another few years, pscates, because...".
You know what? It'll take as long as it takes. I'm not going to set any timelines, because network effects are self-reinforcing and nearly impossible to predict once disturbed. They're feedback loops. There are promising signs, though: The huge sales to schools, and the record-setting sales to higher ed. The growing share of the consumer market. This will hit an inflection point, somewhere, and then Apple will have its own feedback loop, and then things will get interesting.
It helps that Microsoft will essentially be sitting on its thumbs until 2006 or whenever.
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I'd jump out a window. One thing for sure: this is definitely the platform of "oh yeah, well just wait until...". Always seems like we're waiting: for the next Macworld, the next keynote, the next update, the next G-whatever, the next "there's just one more thing", the next rumor, the next OS X, the next commercial, the next retail opening, etc.
I believe I've been pretty consistent in saying that it's not going to be the next anything. Besides the network effect, which is pushing back against Apple's every effort, there's simple unpredictability. The iPod's biggest asset, from a marketing perspective, is the telltale white headphone cord - not even Jon Ive predicted that. He just thought it looked right. The PowerMac G5's biggest coup was its rapid, successful assembly into a supercomputer running OS X, which shocked Apple to its corporate toenails. I'm sure there are still high-fives in Cupertino over the HP deal. The point is that there's a lot out of their control that can turn to their advantage, and the possibility exists that they can get a big break simply by releasing great stuff and paying attention to little details, like the color of headphone cords, that nobody else would care about.
Comments
the implication seems to be, in order to gain market-share apple would have to "dumb" down the product. as long as they are profitable that's all that matters.
maximum profitability should be more important than market share to a stockholder, especially since increased market-share does not mean increased profits.
i think he should stay in his job as long as he's happy and successful at it. the danger is does the company continue to run smoothly if something happened to him? is the company set up to not miss a beat the day he decides to walk away?
This is a cloning / OS X on x86 rant in disguise
No its not. I really believe Steve is an obstacle in reversing Apple's fortunes.
This is about making sure that the Mac remains the computer for the rest of us, and trying to get that computer into the hands of the rest of us.
Bingo! Perhaps I wasn't clear enough. Getting the mac into the hands of the rest of us. Growth, marketshare, competitiveness are all factors that Jobs refuses to addresses if you want the mac to be the computer for the rest of us.
Consequently every major computer company now claim:
?their systems is a digital hub,
? a clone of iApps that work around this hub
?online music service because now suddenly everyone believes in "honesty and karma"
?a portable music device
Give it a month, and we'll see GarageBand knockoffs coming out of the woodworks.
Quote from C|Net article:
http://news.com.com/2100-7341-5109542.html
The company met two goals for the quarter: profitability in its personal systems division, which includes PCs and handheld computers, and profitability in its enterprise system division, which includes servers and storage systems.
The personal systems division reported revenue of $6 billion, a 19 percent increase, with operating profit of $21 million.
Whereas Apple made operating profit of $31 million in their last financial quarter on revenue of $1.715 billion.
I'm not sure that Jobs hasn't addressed competitiveness... give it a little time and see what crops up in the consumer space now that they have something to work with, namely the G5, which will hopefully be put into the other products this year(i.e. better iMacs, Powerbooks, etc.)
Originally posted by Kung Fu Guy
Bingo! Perhaps I wasn't clear enough. Getting the mac into the hands of the rest of us. Growth, marketshare, competitiveness are all factors that Jobs refuses to addresses if you want the mac to be the computer for the rest of us.
I can't even fathom how he isn't addressing those things. Do you even know what Apple is up against? Network effects suck.
Apple can't just do what Windows OEMs do, because they're all competing to offer what amounts to exactly the same thing. Apple is offering something different, and worse, something that is widely perceived as been so different as to be threatening and incompatible and difficult (because, as I've heard so many times, you have to "learn a whole new operating system," and the benchmark for doing that is Windows). There is no silver bullet. There is no easy marketing solution. There is no single thing anyone can do to catapult the Mac's market share. Apple is pushing on all fronts - iTMS, iTunes and the iPod, remember, exist to sell Macs - and trying to ensure that when something does go their way, they're ready to take advantage of that opportunity. If there is anyone with the commitment to excellence, the charisma, and the sheer ability to keep thousands of brilliant engineers on task, it's Steve Jobs. Apple can't afford to not have that skill.
No matter what, though, it's going to be slow going. The Mac has been considered a non-option for almost a decade now.
Look how aggressively they're attacking the digital music market: software, hardware, etc. Apple's approach to the iPod, iTMS, iTunes, etc. shows what they're capable of, and how hard the company and Jobs is working at this stuff. The OS and computer market is another beast obviously, but I don't think we can declare Jobs inept at this point. 2003 was a year that I felt Apple got it going on nearly all cylinders. It still has to prove that its hardware can continue to compete on a consistent basis after so many years of lagging, its consumer desktop iMac is now long in the tooth relatively speaking, but really it had a banner year. In a way, the success with digital music buys Jobs more time for the rest of Apple.
Like I said before, I think Apple is focusing on growth in the American market first, where they are strongest. That makes sense to build on your strengths, but it is obviously frustrating for non-US customers or would-be customers.
Just because technological development might move at brake neck speed that doesn't translate over into how a market develops or how mindshare is gained.
Hell Jobs has well exceeded my expectations for what I think was possible in the time he's had.
Even only a few years ago, there were many poeple who if you mentioned Apple they would have said something like "didn't they go out of business?"
Compare that to now. In less than six months we've gone from trying to justify owning a Mac because they're so slow to arguing over whether they're as fast as the fastest PC. Lack of marketing? Well 6000 mentions through various media outlets around the world in the pre Xmas iPod frenzy ain't a bad bit of marketing IMO. Especially when it didn't cost a bean.
I think you're looking for Apple to employ traditional marketing models that they know won't work. They've got a lot more sophisticated than that.
Steve is not the problem.
And I'd wager that marketing plays a bigger factor than the rest. It's a very real, very tangible thing. Apple currently doesn't sell a system that can't run the OS well, run the iApps well, provide Internet/e-mail/wireless/FireWire capability.
So spec-wise, the needs of probably over 90% of the general public are MORE than met.
I contend that the fact that so many (most, even) of that 90% currently NOT using Macs simply don't give the platform a passing thought when it comes time for their next purchase. Or worse, they sit and struggle with things, pissed off they can't make a cute video of their son's kindergarten graduation or whatever, BUT because they've never been exposed to Macs really (or their knowledge of them is of a little Mac Classic running System 7 or whatever in college a decade ago), they simply trudge ahead, accepting "oh, well this must be part of the deal I suppose...I wish this stuff wasn't such a pain-in-the-butt...".
Unless these people have a friend or co-worker preaching the Apple gospel to them on any sort of semi-regular basis, they're just going to go down to Best Buy or Circuit City and buy another HP or get on the phone to Gateway or Dell.
So I truly believe marketing - over the other things mentiond (headless this, Gthat, cache, bus, GPU, tablet this, mini-tower that, etc.) is the one major stumbling block or thing out there. I don't think the typical consumer just wanting to surf, e-mail, do the whole iTunes and digital camera thing is going to give a damn about bus and cache. They don't even know. It's what amorph said the other day: specs show us what is theoretically possible with this stuff, even though most people - particularly consumers and newbies - never even remotely approach those thresholds. They just want to plug the damn digital camera in, have it work without a bit pain-in-the-balls fuss, see a gallery, pick and choose, print what they want, e-mail a few, maybe make a slide show, etc.
Macs, OS X and the iApps - right out of the box - do EXACTLY those kinds of things...the kinds of things most people ostensibly buy a computer to do. But it doesn't do a bit of good if people are unaware of this, and the only people knowing about it are us.
This is proven to me again and again because whenever I show a PC-using friend or family member something on the Mac (currently, it's my Mom...she's got my old iMac DV and is slowly learning the Mac in anticipation of getting an eMac soon), their eyes TOTALLY widen and a smile or a "holy cow" type of comment never faiils to come from them. I show them the iApps, show them how cool and easy it all works, show them Safari's pop-up blocker, Mail's "Junk" filter, iCal, Sherlock, etc. and they dig it to no end and then start asking/calling ME about it all the time (I currently have 2, possibly 3, switches underway!).
If I, inarticulate dork that I can be, can make these lifelong PC users sit up and take notice and truly consider an all new, completely different platform, then I'd imagine that a well-made, snazzy and hard-hitting marketing campaign would do that on a much larger, more compelling scale.
Some people just need to be pointed and shown. Some people need to just be gently led by the hand (or physically turn their head to look in the other direction).
There's no true, technological-based reason on God's green earth that my Mom, your sister, amorph's neighbor, Matsu's co-workers, murbot's in-laws, etc. shouldn't - and couldn't - be using Macs.
Other than they simply don't even appear on their radar when the time comes to buy a new computer, or replace that 5-year-old Compaq in the family room. As is, they'll most likely just go buy another one because that's all they know or see.
If THAT'S not a marketing/awareness/PR issue (and with very real, true-life and meaningful consequences), then you tell me what is.
I look at Apple today and it sounds a lot like a certain company did a few years back, energetic, full of good ideas, delivering products and solutions, executing, getting noticed above a lethargic class of competitors -- that company was Microsoft!
I remember when they were the good guys bringing you a whole whack of products at a better price than anybody else. Maybe they were stealing with more originality back then, but they still delivered leaps and bounds ahead of other companies.
Fact is, Jobs is putting the pieces in place. Value added services like iTunes and iTMS/iPod, a great OS and cool apps for the rest of us, a network of stores, and professional multi-media credibility -- everything that goes with FCP, DVD studio pro, Shake, and the eventual release of "GarageBand Pro". If they ever find a way to stir in a reasonably priced headless machine and some real intense marketting, things will slowly turn around for them.
This is all work that's setting the stage.
A more affordable product will come, it has to.
Originally posted by pscates
Some people just need to be pointed and shown. Some people need to just be gently led by the hand (or physically turn their head to look in the other direction).
iTunes, iTMS, iPod - big pointy arrows that all have Apple written on them.
Somewhere (?) recently I came across an article arguing that Apple's approach is really more about shifting (or maybe gently leading?) than switching. From this perspective, marketing moves they've made (or haven't made as the case may be) start to make more sense.
Maybe they didn't expect anyone to switch when they saw a switch ad. They'd have been mad if they thought they would. For one, the ads were pretty weak and PC users aren't going to just up and buy a Mac.
But what if the real purpose of the switch ads was effectively Apple waving it's arms in the air and going "Look at me, look at me". A consciousness raising exercise and nothing more. In fact, most of they're mainstream advertsing doesn't amount to much more than this.
Gradually people started to pay a little more attention. In the meantime, Apple continues to tidy the house (OS X, G5). Then they invited the neighbours over for a look around (iTunes for Windows). Not all will accept the invitation. Not all who visit will decide to stay. But some undoubtedly will and every little bit helps.
I guess what I'm trying to say is iTMS, iPod and iTunes for Win (and soon HPiPods in stores everywhere) are marketing. But a form that's designed to slowly burrow its way into people's minds.
But is it enough? Does Apple just only dangle that in front of people and hope they take a further, deeper look? Some will, for sure.
But I don't know if I'm nuts on the idea of Apple's apparent sole marketing tool and tactic being the iPod/iTMS thing.
It doesn't speak to, or reflect, the larger experience. Just a small chunk of the pie. Albeit cool as can be, but the OS, the other iApps, .Mac, the hardware, etc. all get left in the cold for the few curious to seek out or learn on their own.
I don't think that's enough. I really don't.
I mean, look at all this attention Apple has been getting lately from JUST the whole iPod/iTMS thing. Imagine if the other aspects of Apple were promoted or marketed just 1/5th as much? I'm not asking for anything ridiculous here.
In any case, believe it or not, lots of people either aren't that in to music or, for whatever reason, have no interest in the iPod or buying music online from Apple. So putting all the eggs in the iPod/iTMS basket certainly isn't attracting or inflluencing those people.
It's everything, taken as a whole (with the OS being the prime component), that makes up the experience. I just find focusing on one small component to carry all the water a bit baffling. Again, Apple and Jobs kinda started up this whole notion of the "digital hub", but three years later, all these other companies are jumping on that wagon, borrowing the phrase and positioning themselves as the company to turn to for that stuff.
When we all know they're but a pale, half-ass imitation and knockoff.
Hell, people...the fact that iLife (and now iLife 04) comes FREE and PREINSTALLED on every new Mac cannot be ignored or understated. That is a HUGE benefit and trump card over the other side. Where else, on the PC side, are you going to get 5 programs of this quality and integration and gorgeous ease-of-use for free (or $49)?!?!
Nowhere! Hell, there needs to be a massive campaign on iLife 04 alone. And I'll be shocked if there isn't. And part of me, going on history, is already prepared to be let down and bummed at how Apple won't push it either.
If you want to see what Apple marketing can do with a clean slate, look at iPod. There's no legacy there, there are no preconceptions except for Apple's rep for cool. There are no ads showing off the capabilities or the interface, just people dancing. And it went from zero to owning the market despite a top-of-the-line price faster than anyone would have guessed. And it's staying there, outselling Dell's answer by more than 10 to 1 despite the fact that the Dell is cheaper and has twice the claimed battery life, and despite the fact that it's offered by a much bigger vendor with serious name recognition.
Sorry, pscates, but I think Apple marketing kicks ass, and my proof is what they're able to do with something that doesn't come with a lot of baggage from 1995. Even OS X has benefited greatly from not being Mac OS.
The fact is that if they mention "Macintosh," people will flash back to those crashy proprietary things that got driven off the radar by Windows 95, or the Performa 5200s rotting in some elementary school. Macintosh are those things designers use that can't run office or use the internet. Apple is in the position where they need to offer new stuff that's so compelling that people will overcome all that resistance and set aside all those preconceptions and pick up an iBook. And that's what they're doing.
Bill Palmer notes on his site that with the HP deal, Apple is setting people up to buy a Mac with their next purchase, which could be 3 or more years from now. They've even got Carly Fiorina, the head of the #2 PC vendor, talking about eliminating the gap between Windows and Macintosh. This is gold, because it's not coming from Apple. It's coming from Hewlett-Packard. But even though we won't see the fruits of this for some time yet, it's the sort of thing that Apple has to do. They're up against barriers that will take a good long while to break down.
1. How is he holding Apple back?
2. Who could do a better job?
3. What strategy could be used to affect the largest growth.
It's easy to say "replace xxx person" but a bird in the hand is better than two in a bush.
I'm convinced that Apple has been doing the right things. Success comes from preparaton and execution. The iPod was the WRONG product is what I thought when it was announced. I was wrong Steve was right. Perhaps that's why he's worth millions and I'm not.
iTMS was a bold decision that could have hurt Apple but the risk was ameliorated by the success. I'm buying an iPod late this year probably so there's one more sale coming.
Apple is moving in the right direction. 2004 has just begun but I promise you by the end of 2004 you will be singing a new tune. What's happened the last 2-3 years is merely setting up the infrastructure for future success. OSX is mature. Apple has the engineering talent on board and best of all they have direction. They realize that complacency will simply marginalze the platform as a slow erosion happens.
There simply is not CEO with the charisma and mystique. Bill Gates is nowhwere close. PocketPC, xbox, TabletPC....nothing groundbreaking there. Bill does his best when he's following Steves lead.
And won't it spur even faster adoption? Why would we have to wait ANOTHER three years, when 2004 could be an even bigger, better year than 2003?
It's very cool that Carly and HP are in our corner, so to speak. That'll be great, but they're never going to do more the Mac than Apple themselves would or could. I mean, they're not going to flagwave for Apple to the detriment of HP tower and monitor sales.
Maybe I'm just a tad impatient. However, it has been a good two years since the whole "digital hub" thing and I just don't know why Steve's enthusiasm and RDF has to be limited strictly to us Mac users, once or twice a year. If all this stuff is good enough for us...
Again, are they purposely hanging EVERYTHING on the iPod? Sure seems so.
I'd like to think most everyone has the potential to get as excited and passionate about all the same crap we do (because it's "real" and not geeky or limited appeal...it's our lives: movies, photos, music, etc.), given a chance and shown what's what.
I just have a sad feeling that if we met back here in 2007 or so and Apple was still at 3% and, despite the iPod and iTMS, people still weren't using the Mac in as large numbers as we'd expect. And then to hear you or Eugene or someone say "we need to give it another few years, pscates, because...".
I'd jump out a window. One thing for sure: this is definitely the platform of "oh yeah, well just wait until...". Always seems like we're waiting: for the next Macworld, the next keynote, the next update, the next G-whatever, the next "there's just one more thing", the next rumor, the next OS X, the next commercial, the next retail opening, etc.
Now, that's not to say that 96% of people are going to continue to reject the Mac. Apple's consumer market share has doubled since Steve came back and I'm sure will continue to grow. This is likely attributable to ARS's, the digital hub, and former Mac users coming back into the fold, as well as other contributing factors. Similarly, the Pro community is in the early process of rebounding. However, most importantly Apple finally has a solution that is not going to be laughed at by IT departments. Sure, Apple is just dipping its toe in the pond, but it's the first time ever that Macs can be purchased for any department except "Art". OSX is a rock solid solution, despite its warts. With the continuing presence of worms, virii, and all that other nasty stuff that we don't have to deal with OSX becomes a more viable solution. In the same vein, Microsoft's new licensing terms are turning off customers. Apple's leadership has recognized this and hired some Oracle sales people, known in the industry as being some of the best, to continue their push into the corporate space.
We also have to recognize that Apple is breaking into markets that they never had a real presence in before, like the scientific community. Bio-tech is exploding and Apple not only recognized it early, but if actively engaging the community to find out what is lacking the Apple's current offering that is holding up adoption. They are also starting to have a product line for the super computing area. How many more $5 million sales does Apple need to start making a dent in their earnings?
But the one thing that shows that Apple is trying that they are now engaging their customer base in a conversation to see what is holding back adoption. This is so important. One quick personal example. I went to the Final Cut Pro User Group party/seminar at MacWorld Expo NYC last year. There were quite a few people from the FCP group there furiously taking notes on all the requests. Even taking the time to give out their telephone numbers so people could get back to them. This sort of engagement would never have happened before Steve came back. Apple has a humility now that is unprecedented.
Wow, I think this has gone on long enough
Originally posted by Amorph
I really don't even think a big marketing push is the problem. The problem is the popular perception of the Mac, and of how difficult it is to switch.
If you want to see what Apple marketing can do with a clean slate, look at iPod. There's no legacy there, there are no preconceptions except for Apple's rep for cool. There are no ads showing off the capabilities or the interface, just people dancing. And it went from zero to owning the market despite a top-of-the-line price faster than anyone would have guessed. And it's staying there, outselling Dell's answer by more than 10 to 1 despite the fact that the Dell is cheaper and has twice the claimed battery life, and despite the fact that it's offered by a much bigger vendor with serious name recognition.
Sorry, pscates, but I think Apple marketing kicks ass, and my proof is what they're able to do with something that doesn't come with a lot of baggage from 1995. Even OS X has benefited greatly from not being Mac OS.
The fact is that if they mention "Macintosh," people will flash back to those crashy proprietary things that got driven off the radar by Windows 95, or the Performa 5200s rotting in some elementary school. Macintosh are those things designers use that can't run office or use the internet. Apple is in the position where they need to offer new stuff that's so compelling that people will overcome all that resistance and set aside all those preconceptions and pick up an iBook. And that's what they're doing.
Bill Palmer notes on his site that with the HP deal, Apple is setting people up to buy a Mac with their next purchase, which could be 3 or more years from now. They've even got Carly Fiorina, the head of the #2 PC vendor, talking about eliminating the gap between Windows and Macintosh. This is gold, because it's not coming from Apple. It's coming from Hewlett-Packard. But even though we won't see the fruits of this for some time yet, it's the sort of thing that Apple has to do. They're up against barriers that will take a good long while to break down.
Thanks, that's what I was trying to say. Despite the fact they've done very little traditional marketing in Oz in the last year they're in the news again bigtime all on the back of the iPod (& remember that's without iTMS).
People have been saying for years if you can only get people to try Apple's software then they'll understand. But they can't hand over the OS 'cause that's the jewel in the crown. But they can give them a taster. Now the PC community is busy tasting Apple's iTunes, Apple's iPod, Apple's iTMS and soon Apple's thinly disguised HP iPod. And THAT'S a pretty big change from even a year ago, don't you think?
Give it time. Have faith. It might be subtle but it's also extremely elegant and will be far more effective in the long run.
Originally posted by pscates
That's cool, amorph. But won't/can't good advertising and marketing crush those misconceptions and actually convey the good? That's the whole point, isn't it? Marketing and all?
There are two problems, though: One is that all the marketing in the world doesn't help if your audience tunes out when they hear the brand name; and the other is that Apple can't advertise its capabilities without sounding exactly like Microsoft and Sony and Dell and everyone else.
There's a jazz saying that once you have someone in your car you can drive them wherever you want to. The trick is to get them in your car. Now, Apple offers things that nobody else has. Some things that nobody else can even claim to have. Once people are hooked, they're more willing to get in your car. And you know what? That's what the Apple Stores are mostly for. The best way to get acquainted with a Mac - to see what they really are like - is to sit down in front of one and play with it, or have a Mac user show off its capabilities.
It's very cool that Carly and HP are in our corner, so to speak. That'll be great, but they're never going to do more the Mac than Apple themselves would or could. I mean, they're not going to flagwave for Apple to the detriment of HP tower and monitor sales.
Maybe not, but merely closing the gap between Windows and Macintosh is a direct shot at a huge obstacle confronting Apple: Compatibility. If Apple claims interoperatibility with Windows, that's one thing. If a Windows vendor claims it, that's another thing entirely. It helps that HP has, in fact, offered historically solid Mac support.
Again, are they purposely hanging EVERYTHING on the iPod? Sure seems so.
Right now, sure. Can you blame them? It's a runaway hit. You'd want to latch as much onto it as you possibly could! Apple announced OS X, and the tech press and the geeks took notice. They announced the iApps and the Digital Hub, and so did all the PC vendors. They ran the Switch campaign, and nothing much happened. They announced iPod, and nobody has an answer for it, and people are hopping in Apple's car by the millions. With success like that, you don't ask too many questions.
I'd like to think most everyone has the potential to get as excited and passionate about all the same crap we do (because it's "real" and not geeky or limited appeal...it's our lives: movies, photos, music, etc.), given a chance and shown what's what.
Sure, just like every PC has the potential to be as easy to use as a Mac. PCs are saddled with Windows; people are saddled with fear.
I just have a sad feeling that if we met back here in 2007 or so and Apple was still at 3% and, despite the iPod and iTMS, people still weren't using the Mac in as large numbers as we'd expect. And then to hear you or Eugene or someone say "we need to give it another few years, pscates, because...".
You know what? It'll take as long as it takes. I'm not going to set any timelines, because network effects are self-reinforcing and nearly impossible to predict once disturbed. They're feedback loops. There are promising signs, though: The huge sales to schools, and the record-setting sales to higher ed. The growing share of the consumer market. This will hit an inflection point, somewhere, and then Apple will have its own feedback loop, and then things will get interesting.
It helps that Microsoft will essentially be sitting on its thumbs until 2006 or whenever.
I'd jump out a window. One thing for sure: this is definitely the platform of "oh yeah, well just wait until...". Always seems like we're waiting: for the next Macworld, the next keynote, the next update, the next G-whatever, the next "there's just one more thing", the next rumor, the next OS X, the next commercial, the next retail opening, etc.
I believe I've been pretty consistent in saying that it's not going to be the next anything. Besides the network effect, which is pushing back against Apple's every effort, there's simple unpredictability. The iPod's biggest asset, from a marketing perspective, is the telltale white headphone cord - not even Jon Ive predicted that. He just thought it looked right. The PowerMac G5's biggest coup was its rapid, successful assembly into a supercomputer running OS X, which shocked Apple to its corporate toenails. I'm sure there are still high-fives in Cupertino over the HP deal. The point is that there's a lot out of their control that can turn to their advantage, and the possibility exists that they can get a big break simply by releasing great stuff and paying attention to little details, like the color of headphone cords, that nobody else would care about.