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Posted on 01/27/2011 3:34:13 AM PST by Swordmaker
THE MAKER OF SHINY TOYS, Apple is starting to see sales of its Macintosh computers stunted by the Ipad.
Market analysts Asymco produced not only evidence that Ipad sales grew massively in the fourth quarter of 2010 but also that a worrying trend is emerging for Apple, in that the sales growth of its Mac computers is falling. Even though its figures suggest otherwise, Asymco claimed that Ipads are in fact not cannibalising Mac sales.
Further data presented by Asymco show that Apple is flogging fewer Ipods, with users opting for Iphones instead. That isn't particularly surprising as industry pundits have been talking about the MP3 player market becoming saturated and eventually declining for many years. However for Apple and its shareholders, news that sales of its once bread and butter line of computers is facing declining growth will start to ring alarm bells.
Apple managed to steal a march on its rivals in the tablet market with the Ipad, but to expect that it will continue to lead the market with the slew of Android devices from big name manufacturers weighing in is presumptuous and risky. Impressive growth in Ipad sales figures won't shock anyone, after all Apple's faithful will gladly spend money on a mobile phone that can't even make phone calls, and few real tablet alternatives existed until the end of 2010. However, the issue of product cannibalisation is an important one for Apple if it wants to retain the image of being a computer company rather than just the purveyor of shiny consumer gadgets.
Although Mac sales are not falling according to Asymco's figures, the stuttering growth is surely a concern for Apple. While it might peddle overpriced gadgets such as the Ipod, Iphone and Ipad, on the whole its range of Imacs and Macbooks offer a good mix of price, performance and of course attractive design.
Maybe Apple doesn't care about its changing public image. There have been signs that Apple has stopped innovating, such as its decision to include relatively minor updates to the Imac, Macbook Air, Mac Mini and Iphone 4. Then of course there also is its Mac Pro, with few words in the English language being adequate to describe the level of insanity one requires to purchase a Mac Pro. So perhaps it is not surprising that even with the fabled fruit logo on the back of its machines, Apple is facing a tough time trying to increase its computer sales.
As fanbois grab the pitchforks, it's important to remember that especially in the case of the Iphone 4, the device is a middling product with a high-end price tag. Software wise, Google's Android OS equals or surpasses Apple's IOS on many fronts, while the impressive yet patronisingly named Retina Display on the Iphone 4 is its only cutting edge hardware feature. For the other Apple products, it's really an open and shut case that they are mediocre hardware that's overpriced. Apple's Imac is still arguably the best all-in-one computer on the market but its design, the barometer of Apple innovation, has changed little in over three years. After years of leaving the Macbook Air alone, the specifications barely changed with Apple's refresh. The same can be said of the Mac Mini, which is also positioned as an Xserve replacement, if one is silly enough to believe Apple's marketing bump.
So is Apple shooting down part of its product line by launching the Ipad? The figures do tend to suggest that when Jobs' Mob releases a major new product such as the Iphone or the Ipad, there is a detrimental effect on its pre-existing products such as the Ipod and the Mac range of computers. This might also explain why Apple was relatively slow in developing a Mac App Store. After all, why would Apple care that Mac sales were being hurt by products that generate cash for the outfit after the original sale?
What Asymco's figures do show is that Apple is clearly turning from being a computer firm into one that just designs shiny consumer electronics. µ
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That said, this article doesn't make a lot of sense to me. These sorts of disruptive technologies were going to be brought to market whether by Apple or competitors. To the extent that iPad's or iPhone's are cannibalizing traditional Apple product lines, at least Apple has retained these consumers.
Also, I've not seen any signs of Apple's innovation engine slowing down. If Jobs doesn't return, then it remains to be seen whether there is a long-term impact. But I suspect Apple's product pipeline is filled for at least another few years.
Actually, Apple has released the first of a series of game changing computers in the form of its new MacBook Air which the previous version was notable for both its lightness and seeming relationship to the original 512 Mac, interesting but frustratingly limited.
But two years later, some subtle changes and add a Solid State Drive and it suddenly is a game changer. This machine makes wild assumptions that would be insane even two years ago and yet make perfect sense today. The first and foremost of these assumptions is that this device is going to be connected wirelessly 90-100% of the time. Following with, it will download and add software from the internet rather than any other media 99% of the time. The stupid thing literally has two USB ports and that is it. Further, it assumes that it will backup and share data via the "Cloud" rather than a connected backup Hard Drive, though this isn't specifically excluded. And it assumes that it will print and scan things via connections to devices that will support this via network access.
This is possible via the wireless revolution that has been occurring and has been accelerated by the iPhone and iPad. The App Store for Macs is just an extension of the iPhone and iPad app stores but also a recognition that this way of buying and distributing software has numerous benefits for both software developers and end users by creating ownership of the software tied to the user rather than the computer and providing a forum for managing these licenses such that Piracy is much less desirable and that encourages extremely low app pricing that is sustained by the reduced incentives to pirate software and the ease of distribution of placing apps in this channel and leaving the management of this aspect of the software to Apple.
Look for almost all portables to come to resemble the MacBook Air in the next 24-36 months. The technology is derivative and ground breaking at the same time. People just are starting to recognize this and frankly, Apple needs for the Mac App Store to grow and stabilize and the pricing to respond to the new competitive environment before this shift becomes a tidal wave.
Once the App Store for Mac Software is firmly established look for the iMac to enter this same space with a combination of an SSD Boot Drive and a large (1TB) storage drive.
The MacPro space is the place where innovation looks very different than in the shift to wireless, in this space Apple has to figure out how to overcome the tyranny of the 1080p world that has forced all higher resolution displays off of the market nearly, but the world of multiple displays and processing power continues to be the line of advance for graphic arts and this is the machine that supports this whole industry so look for new thinking to break through here as well. For now, Apple is doing mostly all of the right things in the products I discussed but also in their funny products like the AppleTV which when it supports 1080p will be the gateway to the internet for all of those 30-55" displays that are being sold like hotcakes right now. These are exciting times.
sales growth of its Mac computers is falling.Notice that the article doesn't say that sales of Macs are falling.
the issue of product cannibalisation is an important one for Apple if it wants to retain the image of being a computer company rather than just the purveyor of shiny consumer gadgets.Removing "computer" from its corporate name sure was a funny way to indicate that Apple "wants to retain the image of being a computer company."
FanBois indeed!
What is really hilarious is how the Apple advocates here have been going on about how Apple computers give you much more power for the money you spend. Then here comes Apple with the iPad which is nothing more than a woefully underpowered computer. And invent all kinds of apps for this underpowered computer
Big contradiction here
I have been going on for a few years that Window7 computers...even cheapo ones with just two GB ram and older dual core processor are enough computer for 90% of computer buyers. The iPad has pathetic power compared to a 3 year old laptop I have with Win7/2GB/T2130/80GB hard drive. My desktops have higher specs
I have always used macs ...BUT the last one needed a logic board transplant 2 times while under warrantee. When it went again it was no longer covered and they referred me to a local guy to get it replaced.. I just bought a new one and sent thee old one to recycle heaven
Then the line of the year,,”you had a good 2 year run with it” was what the “genius” told me.
TWO years?? with two major repairs?? My old G4 ran like a tank
There is no quality in the now Chinese built computers.. I will never spend that kind of money again on a 2 or 3 year “good run”
I can buy a cheap lap top and get more time than that ...
Maybe it is not JUST the I pads.. maybe they have a bigger problem than that
If shooting myself in the foot involved selling 7 million units, show me where the bullets are.
Which is probably why Apple started putting stakes down in other consumer electronics areas years ago.
Apple if it wants to retain the image of being a computer company rather than just the purveyor of shiny consumer gadgets.
Change the definition of the computer. Apple just needs to get rid of that wired iTunes tether, and an iPad can be a whole computer to the millions who don't need the power of a laptop or desktop. I suspect Apple is thinking about that, probably leveraging the cloud for additional storage and backup.
There have been signs that Apple has stopped innovating, such as its decision to include relatively minor updates to the Imac, Macbook Air, Mac Mini and Iphone 4.
The author doesn't know how Apple works. Apple doesn't maintain huge engineering teams that can go full-bore on all projects at the same time. Focus is rotated. Aside from that, this guy's definition of "minor" is whacked. The iMac underwent a major re-do a year ago, the Macbook Air and Mac Mini just got major re-dos last year, and the iPhone 4 is a huge leap ahead of its predecessor.
Then of course there also is its Mac Pro, with few words in the English language being adequate to describe the level of insanity one requires to purchase a Mac Pro.
Perhaps one doesn't want to pay Dell's or HP's inflated prices for workstations?
Apple's IOS on many fronts, while the impressive yet patronisingly named Retina Display on the Iphone 4 is its only cutting edge hardware feature.
As opposed to most high-end Android phones, which have no cutting-edge features at all.
The same can be said of the Mac Mini, which is also positioned as an Xserve replacement
That was strange, although people have been using Minis as servers for years.
That is rarely stated, except for the Mac Pro in high configurations. The question is VALUE for your money.
Then here comes Apple with the iPad which is nothing more than a woefully underpowered computer.
Except the OS is a lot lighter, perfectly fast and functional on a system that would have Vista being unusable.
even cheapo ones with just two GB ram and older dual core processor are enough computer for 90% of computer buyers.
iOS doesn't require 2 GB RAM to function smoothly. 256 MB seems to be sufficient, although 512 MB looks like the comfort level (compare with 2 GB for Win7). Expect 1 GB capacities eventually to handle larger data.
The iPad has pathetic power compared to a 3 year old laptop I have with Win7/2GB/T2130/80GB hard drive.
And for a portable device, the iPad uses a fraction of the power of your 31W Intel processor. This is about portability, with enough performance to do what you need on the road.
My desktops have higher specs
I would certainly hope so. But do remember that the A4 is last year's chip. Expect dual-core, higher-performance this year. Now is really not a good time to buy an iPad.
I am worried about quality. I’m hearing more horror stories than I used to, but then Apple’s selling a lot more. I guess there will always be lemons, in which case customer support is what makes the difference. Apple’s the best on that, but still not 100% of course. Some people will get lemons, and will get screwed by customer service.
I’m over three years on my iMac with only a hard drive failure after almost three years. I don’t see that as strange, since I’ve had numerous hard drive failures in my time in computing. What was important was that recovery from the impending failure was FAR easier than it has ever been on a Windows system (and notifying me in advance was pretty cool).
And when Boeing started with those jet engine planes... They thought they were so smart at the time, but when customers stopped buying their propeller planes, well that sure wiped the smug smiles off their faces.
When AT&T came out with the push-button phone, sales of their rotary phones then crashed...fools! Damn fools! What were they thinking?
If Apple doesn't smarten up and stop coming out with all these shiny new gadgets, they will suffer the consequences - at least several more quarters of record sales and profits.
you know, my Firefox was underlining “biad” and I chose to ignore it. Sheese... “bias” Apologies.
Our 2 year old mac notebook has had two batteries, three power cords, 2 DVD drives and needs a third, I’m using an external drive for the time being.
My daughter in laws Mac Book pro was acting up with ever changing symptoms. My son is a computer engineer, my daughter in law a geek ...the “genius “ tried to tell my son there was nothing wrong with it..in order to get the problem addressed my son was sweetly persistent until closing time when they finally agreed to send it to apple..
In 2 weeks she got a call to come in.. Apple replaced the unit with an air book ..because the other one unfixable . The one they replaced it with is currently visiting Apple for a new logic board..
There are real quality issues.. I do not think this is a fluke ... when you pay 1,300 for a small air book ..I think you should expect more than a year or two
I currently have a first generation air book .I love the way it is made and the portability.. but when it goes, not sure what I will do
Boy, you really have to dig deep into this article to ferret out the author's biases, huh?
There have been signs that Apple has stopped innovating, such as its decision to include relatively minor updates to the Imac, Macbook Air, Mac Mini and Iphone 4.
Here is where Apple becomes a victim of its own success: Folks like this author dismiss anything that isn't Earth-shattering as "relatively minor."
Apple lives by Antoine de Saint-Exupery's rule: “A designer knows he has achieved perfection not when there is nothing left to add, but when there is nothing left to take away.” None of the Mac models is going to get a flashy external redesign in the near future, because Jony Ive and his designers have precious little left to take away.
But in the last couple of years, the iMac has gotten a unibody enclosure, LED backlighting, and 1080p throughout the product line; the Macbook Air has been completely redesigned, gotten a standard SSD, a 20% cut in weight and a 33% drop in price; The Mac Mini has had its size chopped by a third and added dual video outputs.
The iPhone 4 got the best display in the industry, video calling that works, 720p video, and performance good enough for Epic to port its Unreal game engine over.
Then of course there also is its Mac Pro, with few words in the English language being adequate to describe the level of insanity one requires to purchase a Mac Pro.
Buying a Mac Pro seems idiotic to someone who's never had the need for one. It's like a cargo truck. If you need it, you'll know.
So perhaps it is not surprising that even with the fabled fruit logo on the back of its machines, Apple is facing a tough time trying to increase its computer sales.
Yeah, it's brutal out there. I'll bet all the other manufacturers are pointing and laughing at Apple's anemic 24% growth.
For the other Apple products, it's really an open and shut case that they are mediocre hardware that's overpriced. Apple's Imac is still arguably the best all-in-one computer on the market
How can something be "mediocre" and "arguably the best ... on the market" at the same time?
This might also explain why Apple was relatively slow in developing a Mac App Store.
Relative to what? How far did it lag behind the Windows app store?
What Asymco's figures do show is that Apple is clearly turning from being a computer firm into one that just designs shiny consumer electronics.
Begging the question. The article begins and ends with this pearl of wisdom, glossing over the fact that the most recent quarter broke records.
We do have a high expectation for Mac quality, and justifiably so. It is sad when they let us down. Every manufacturer has its DOA and by-year failure rates. I wonder what they are these days. Is Apple still better? Anyone got stats?
It doesn't to me either. From what I've seen over the years, companies would be better served by taking market share from their old product lines. If they don't, somebody else will.
Actually, I think iPad will hurt the iPhone more than Mac. I have an iPhone, and helped a friend get accustomed to her iPad yesterday. (Neither of us knows much of anything about Apple products, but now we have one each.) The iPad seems to be just a huge iPhone that doesn’t make calls. The Apps are mostly the same, but each has a few the other cannot use. To be honest, although I mostly love my iPhone, I think it might’ve been smarter to get a cheapo phone and an iPad, and have 98% of the same benefits, plus many other features (immense memory space, movies, games where you don’t have to crane your neck, etc etc).
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