Apple to focus on software growth as Samsung warns of shrinking hardware profits

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  • Reply 81 of 87


    Apple gets 30% from software sales.  Minus the infrastructure costs.  Obviously less that the 37 - 40% of their typical hardware margin.  However, I agree that software sales are a more steady source of income that will eventually be an important mainstay of the ecosystem and is a great competitive advantage over other hardware only vendors.  

  • Reply 82 of 87

    Quote:

    Originally Posted by White Lotus View Post


    I bought the new iPod Touch and I've been impressed with apps like Djay, Vjay, iMovie and others. I have noticed that iOS has tremendous selection of creative apps for video, pictures, and music that don't exist on Android (I own a Galaxy S2 phone too). It was actually iMovie that drew me to wanting an iMac.


     


    I've been using Sony Vegas pro for years now and while it's powerful and popular, it's not easy to use like iMovie and while it's possible to make transparent lower thirds on Sony Vegas (title bars), it's made far easier on iMovie.


     


    I ordered an iMac (I'm waiting for it) and I already have parallels software to run Win 7 on it so it can be a two-fer. I have been to two weddings where they used Macs for the slideshow software and I am so impressed with the quality. Macs really do have the best software in some cases. For many video enthusiasts Final Cut Pro is the standard and Macs are extremely popular with desktop publishing as well.


     


    If I could pick one or the other, Pages would be my choice as Word has become too complicated and intimidating. Keynote has better built in templates and pictures than Powerpoint so it gets the nod there in my book (I've used Powerpoint for many a school presentation). It's close, but many photo veterans give the nod to Aperture over Lightroom for slightly better layout and algorithms. Obviously Garage Band is the standard for music creation so no competition there.


     


    Funny thing about iPads and even iPhones, many DJ's are using them now. With professional apps like DJay, you really can do all your DJ'ing on your iPad. It certainly cuts down on the equipment they have to shlep around.


     


    I see iPads used in restaurants for point of sale transactions and conventions where they are used to display photo and/or video promotions. Some hospital just ordered a boatload of iPads so doctors could use them. iPads are used in flight school now. Someone came out with a slew of great apps for flying and iPads are now standard in many a class curriculum.


     


    I guess when you create a great beautiful looking product, it inspires people to do things with it. That's one of the negative aspects of Android that brings it down. Their devices are cheap, plasticky things. If you want to use Google Play store to download a metronome, a scientific calculator, a fractal maker, or something to calculate electrical resistance Android's got you covered and then some.


     


    It's with creative apps that Android fails. I have looked at and even downloaded some of their picture editing apps to use with my camera and I don't feel inclined to use any of them. It's very much an eco-system by geeks for geeks. I guess that's what you get when you have a company where engineers run the show as opposed to Apple where designers (like Jony) run the show first and foremost.



     


    nice post, thanks.  I have little experience with Android, but I have the feeling that it ain't so great.

  • Reply 83 of 87
    jragostajragosta Posts: 10,473member
    bryanyc wrote: »
    Apple gets 30% from software sales.  Minus the infrastructure costs.  Obviously less that the 37 - 40% of their typical hardware margin.  However, I agree that software sales are a more steady source of income that will eventually be an important mainstay of the ecosystem and is a great competitive advantage over other hardware only vendors.  

    Apple has stated that they make little on iTunes sales. They sell music and movies and software in order to move hardware.
  • Reply 84 of 87

    Quote:

    Originally Posted by Gazoobee View Post


     


    Jobs was not infallible either.  I think on the balance of evidence, Apple is actually a hardware company that makes it's own integrated software.  I know Jobs said different and Apple's position whenever I hear it mentioned by any Apple employees is close to what Jobs said, but I don't see that there is any reason to really believe them (or him).  Apple is f*cking obsessed with hardware.  Apple sells hardware.  All their major money comes from hardware. The software is arguably just the bit of the product that makes the hardware work.  


     


    I'm not saying you can't argue the opposite as well, but everything Jobs ever said on stage or in person leads me to think his main interest is the hardware.  Jony Ive is also the single most important designer and he is the hardware guy.  Remember too, Apple doesn't even tell you (except in a few rare circumstances) who designed the software.  It's just "that stuff" that they put into the hardware to make it work and look cool.


     


    They are always constantly happy to shuck off the software task to third parties also.  They would absolutely *love* it for example, if a company designed a good, working Office suite for iOS, it would mean they could put the pretence that is iWork out to pasture and not have to worry about it again.  They created iWork/Appleworks specifically because there was no good alternative at the time and supported it spottily ever since. 


     


    People who just quote Jobs' dogma on the matter are not thinking clearly in my view. 


    Sure they say they are a software company (mostly), but judge them by what they do not by what they say



     


     


    Quote:

    Originally Posted by White Lotus View Post


    I bought the new iPod Touch and I've been impressed with apps like Djay, Vjay, iMovie and others. I have noticed that iOS has tremendous selection of creative apps for video, pictures, and music that don't exist on Android (I own a Galaxy S2 phone too). It was actually iMovie that drew me to wanting an iMac.


     


    I've been using Sony Vegas pro for years now and while it's powerful and popular, it's not easy to use like iMovie and while it's possible to make transparent lower thirds on Sony Vegas (title bars), it's made far easier on iMovie.


     


    I ordered an iMac (I'm waiting for it) and I already have parallels software to run Win 7 on it so it can be a two-fer. I have been to two weddings where they used Macs for the slideshow software and I am so impressed with the quality. Macs really do have the best software in some cases. For many video enthusiasts Final Cut Pro is the standard and Macs are extremely popular with desktop publishing as well.


     


    If I could pick one or the other, Pages would be my choice as Word has become too complicated and intimidating. Keynote has better built in templates and pictures than Powerpoint so it gets the nod there in my book (I've used Powerpoint for many a school presentation). It's close, but many photo veterans give the nod to Aperture over Lightroom for slightly better layout and algorithms. Obviously Garage Band is the standard for music creation so no competition there.


     


    Funny thing about iPads and even iPhones, many DJ's are using them now. With professional apps like DJay, you really can do all your DJ'ing on your iPad. It certainly cuts down on the equipment they have to shlep around.


     


    I see iPads used in restaurants for point of sale transactions and conventions where they are used to display photo and/or video promotions. Some hospital just ordered a boatload of iPads so doctors could use them. iPads are used in flight school now. Someone came out with a slew of great apps for flying and iPads are now standard in many a class curriculum.


     


    I guess when you create a great beautiful looking product, it inspires people to do things with it. That's one of the negative aspects of Android that brings it down. Their devices are cheap, plasticky things. If you want to use Google Play store to download a metronome, a scientific calculator, a fractal maker, or something to calculate electrical resistance Android's got you covered and then some.


     


    It's with creative apps that Android fails. I have looked at and even downloaded some of their picture editing apps to use with my camera and I don't feel inclined to use any of them. It's very much an eco-system by geeks for geeks. I guess that's what you get when you have a company where engineers run the show as opposed to Apple where designers (like Jony) run the show first and foremost.



     


    I agree their hardware is much better than their software.  But now that the put Ive on top of the software.....   Maybe he will just tweak the interface... but maybe there is a shift happening here towards the soft side ;)

  • Reply 85 of 87


    Think of where things are going: a few years ago a laptop was not up to professional work.  Now there is almost nothing that a quad core 2.8 ghz laptop with a ssd can't accomplish.  


     


    iPad will be the same.  Hard to believe, but that is the way it goes.


     


    That thing on your wrist 5 years from now will probably do about what the current laptop does.

  • Reply 86 of 87
    mstonemstone Posts: 11,510member

    Quote:

    Originally Posted by MacRulez View Post




    Quote:

    Originally Posted by mstone View Post


    Have you seen the freaks at NAMM? Not exactly what I would call a cross section of professionals.



    Once upon a time there was a company who called them the crazy ones, the round pegs in square holes...


     


     


     


    So unprofessional indeed.  Can you imagine the audacity of holding a press conference in bed?  Why can't they be more like the corporate-manufactured bands that always send their reps in well-tailored suits and uniform haircuts?  Yep, conformity is what music's all about.



    I am still trying to make the point that MS Office was the killer app that made Windows so successful and that although iPad is also a runaway success there is no single defining purpose for its use as a business tool. People keep trying to equate minor market segments such as audio recording as proof that the iPad has business purposes. Compared to the case of MS Office on Windows the iPad has nothing but a few isolated business uses as far as I can tell.


     


    When you visit the App Store the top apps are games, games and more games. Even the productivity section is full of redundant to do lists. iPad may be used for some niche business apps but there does not seem to be any must have killer business use for it yet.

  • Reply 87 of 87

    Quote:

    Originally Posted by mstone View Post




    Quote:

    Originally Posted by MacRulez View Post




    Quote:

    Originally Posted by mstone View Post


    Have you seen the freaks at NAMM? Not exactly what I would call a cross section of professionals.



    Once upon a time there was a company who called them the crazy ones, the round pegs in square holes...


     


     


     


    So unprofessional indeed.  Can you imagine the audacity of holding a press conference in bed?  Why can't they be more like the corporate-manufactured bands that always send their reps in well-tailored suits and uniform haircuts?  Yep, conformity is what music's all about.



    I am still trying to make the point that MS Office was the killer app that made Windows so successful and that although iPad is also a runaway success there is no single defining purpose for its use as a business tool. People keep trying to equate minor market segments such as audio recording as proof that the iPad has business purposes. Compared to the case of MS Office on Windows the iPad has nothing but a few isolated business uses as far as I can tell.


     


    When you visit the App Store the top apps are games, games and more games. Even the productivity section is full of redundant to do lists. iPad may be used for some niche business apps but there does not seem to be any must have killer business use for it yet.



     


    I totally agree that "MS Office was the killer app that made Windows so successful"... or, rather the killer suite of apps. With Office you got Word, Excel, PowerPoint and Access -- and could could satisfy the basic "business" needs of Home, SMB, and some large portion of the needs of large enterprise.


     


    Office, along with a fairly robust and accessible development environment allowed 3rd-party and in-house developers to develop those custom apps that allowed users to tailor/augment Windows to their specific needs.  These "custom" apps were the boon that became the bane that are today's "legacy" apps...  IMO, "legacy" apps (and the need to support them) are the biggest deterrent to Windows development.


     


    To some extent, I suspect, Office suffers from this same "legacy" bane -- in that any UI or any feature provided in any Office app must be supported into the future. This "legacy" bane is currently being demonstrated by "Office" on the Surface RT.


     


    My points re Office:



    1. Because of inertia, the "legacy" bane and the need to "protect their investment", a large percentage of Windows Office users will remain Windows Office users on laptops. Tablets will be ancillary devices for Windows Office -- used for access and minor changes, but not the "productivity" of document creation.


    2. MS cannot do what needs to be done to make Office work on a Tablet -- any Tablet (including the iPad)


    3. Someone, likely not MS, will determine that the old 80-20 rule applies to Office -- 80% of the user needs can be satisfied with 20% of the functions.  And, this 20% can be rethought and reimplemented to exploit the tablet UI.  


     


    So, in time, I believe, the "Office" on a Tablet issue will be resolved.


     


    But, time and technology moves forward!  Some upstart companies will exploit the advantages of tablets and use them with new apps, in new ways -- ways that give them a competitive advantage over companies dragging the legacy anchor.


     


    For the Tablet, I don't believe it will be a single killer app -- rather a large selection of apps that the user can integrate into a killer solution -- the Tablet solution.


     


    Here, I think that time and opportunity are on the side of the Tablet.

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