Apple clobbers the competition—Commentary: The carnage of Apple’s spectacular success

Market Watch ^ | 09/24/2010 | By Ashley Allen and Douglas McIntyre

[Swordmaker]

NEW YORK (MarketWatch) — Apple Inc. is a Death Star. It pulls in most of what comes into its orbit and either overtakes or assimilates it.

The success of the company is particularly spectacular because it is largely a four-product enterprise, consisting of the iPad, iPod, Mac, and iPhone. It also produces a suite of supporting software that includes its OSX, the Safari browser, iTunes, and the App Store. These non-hardware products knit together the “iProduct” universe.

Apple’s product line stands in stark contrast to tech giants like Microsoft Corp. (MSFT 24.75, -0.03, -0.10%) , Hewlett-Packard Co. (HPQ 41.02, +0.04, +0.10%) , Oracle Corp. (ORCL 26.96, -0.16, -0.59%) , and Cisco Inc. (CSCO 22.17, +0.08, +0.36%) , all of which have a multitude of product lines that spreads risk and increases sales opportunities. As a result, Apple’s revenue run rate, is only over $60 billion — much smaller than that of Cisco.

Some consumers are wondering whether a tablet like the iPad can replace a laptop for travel purposes. On a recent trip to Paris, Walt Mossberg decided to find out, saying au revoir to his laptop and relying on a tablet and smartphone for work and play.

However, despite the competition’s size, Apple’s market cap is $240 billion, more than those of Oracle and Cisco combined. Perhaps the thing that Wall Street loves most about the company is that it is growing quickly, especially for a company of its size.

The reason behind its growth is simple: Apple clobbers the competition.

The Blackberry

Amazon’s Kindle

Asus

Microsoft Windows

Mozilla’s Firefox browser

Sony

Adobe Flash

Google

[PugetSoundSoldier]

I am an independent consultant. I worked for Microsoft for 5 weeks in May/June, and last worked for Apple in February (for 3 weeks).

Presently, it is for Event Electronics, American Music Corporation, and ATI; I’ll be on a trip in China and Thailand for them, starting in 8 days.

[stripes1776]

iProduct! What a great way to summarize Apple!

[BunnySlippers]

You are a sweet heart. :)

[usconservative]

If I were doing MSFT's marketing, I'd be talking about how great it is, not how Apple's niche success is false.

Honestly if I were MSFT, I'd be finding a way to integrate the new versions of MS Office, SharePoint and OCS with the iPad platform.

Speaking of, the new versions of MS Office 2010, Sharepoint 2010 and Office Communicator are really slick, especially the "presence" features and ability to collaborate anywhere. If MS was smart, they'd find a way to co-opt the iPad into their strategy and beat Apple at their own game.

I've been a pc guy for 25+ years, but what alot of people miss is that the iPad is a transformational device because of it's simplicity, functionality and the 'natural' way one can use it. As other slate type devices come onto the market and do the same thing, Apple will see real competition, but the bigger challenge is in MS finding a way to make these slate devices that run iOS and Droid work with their platforms. That's what alot of users are really starting to demand.

[discostu]

No, they’ll never have the computing power, or storage capacity to compete with desktops or laptops. Because everytime technology advances that will help the Pads catchup it will also help the full sized machines stay ahead. That’s always the problem small form factors have in competing with large form factors, there’s all kinds of neat stuff out there (like Seagate’s 3TB HDD) that won’t fit in the smalls, and everything cool that will fit in the smalls will also fit in the bigs. If somebody invents 3TB flash storage you can use in a Pad you could probably put 300 of them on a PCI card and have PETABYTE flash storage for a desktop. Small form factor items will never have more than about 30% of the power and storage of large form factor items.

The screensize is fine for portability, but for usage it’s crap. If you’re going to spend 40 hours a week doing real work with a computer, which often times involves multiple application and multiple items within the same application, you can’t do that on a screen the size of a trade paperback. At work people hook up two and three 17 inch monitors. At home I’ve got a 27 inch monitor. Sure they’re not portable, but real work generally isn’t.

The keyboard in the pants is pure silliness. It won’t develop over time because there’s no reason for it, those things just exist as an alpha nerd fashion accessory. And carrying around a real keyboard to plug into the pads defeats the portability. If you’re going to carry around a tiny screen and a full sized keyboard you might as well split the difference with a laptop, the keyboard is smaller but still a good size, and the screen is bigger, and you get more RAM and and processor and drive space.

Pads are neat, but it’s important to understand what they are. They’re e-readers with web browsers. That’s basically it. Don’t take my work for it, even Jobs basically says that.

[PugetSoundSoldier]

As other slate type devices come onto the market and do the same thing, Apple will see real competition, but the bigger challenge is in MS finding a way to make these slate devices that run iOS and Droid work with their platforms. That's what alot of users are really starting to demand.

Office web apps exists, and runs on just about everything out there. Including smartphones and iPad and Android tablets.

[TruthHound]

Why is it that every time I enter an Apple thread, I'm hit with the stench of urine?

Here's the bottom line.

1984 - The Macintosh will change the computer industry. CHECK...

2001 - The iPod + iTunes will change the music industry. CHECK...

2007 - The iPhone will change the Smart phone industry. CHECK...

2010 - The iPad will change multiple industries (education, retail, shipping, more). CHECK...

Don't like Apple products or innovation? Spend your money elsewhere and MOVE ON.

[Swordmaker]

Good God....is this Apple shareholder trying to bump up the value of his stock....AGAIN?????

Give it a rest,"swordmaker",we understand that you love Apple and own lots of its stock.

I own no Apple stock. I wish I had bought some. If I did own some I would reveal it on every posting.

How many times do I have to post that I maintain the Apple/Mac/iPhone/iPad Ping list with over 500 of your fellow Freepers as members who have asked me to post articles on Apple, now the second most valuable company in the world, and ping them to them. I post these articles because they are of interest to them and others who are not members of the list. If you aren't interested, don't click on it, don't read it, and certainly don't comment. Certainly not to make baseless allegations about me.

[usconservative]

I'm familiar with the Office Web Apps service, need to spend more time on it to determine how useful it is for me and my needs.

Thanks for the tip.

[PugetSoundSoldier]

The screensize is fine for portability, but for usage it’s crap. If you’re going to spend 40 hours a week doing real work with a computer, which often times involves multiple application and multiple items within the same application, you can’t do that on a screen the size of a trade paperback. At work people hook up two and three 17 inch monitors. At home I’ve got a 27 inch monitor. Sure they’re not portable, but real work generally isn’t.

I get along fine with my 17" widescreen laptop, but a big limiting factor of touch-only tablets isn't just screen size (which is small), but also the fact the keyboard takes up a LOT of the real estate of the screen when it's up. AND your fingers obscure more when using it - they block more of the view. It's the biggest issue I've found with my own Android tablet, and when using an iPad. You lose a LOT of screen real-estate any time that keyboard is active.

Yes, you can use a Bluetooth keyboard, but that's another thing to carry around. And then you're right at the point where a netbook becomes even more attractive - it doesn't take much more to open up and boot a netbook than to boot a tablet, pull out a keyboard, and get it going.

[stripes1776]

They are losing market share, but selling more phones. To say they aren’t selling iPhones to more than their base is inaccurate.

You have hit the nail on the head. All Apple has to do is increase sales, and they are doing that.

They will never dominate market share for a lot off reasons, but that doesn’t mean they won’t have moved beyond their base. And they did do a lot to explode the market for those companies who have a goal of market share dominance.

Once again, you hit the nail on the head. In the desktop era, the idea was to isolate the user. In the mobile-network-connected era, the idea is to connect a user to many other people in a variety of ways. No one will dominate in the new connected era. BMW does not dominate the automobile market, but they sell a lot of cars nevertheless. And high-quality cars at that. If anyone wants to drive a Ford, there is nothing wrong with that. But don't confuse a Ford with a BMW.

[StrictTime]

The article is wrong about the Kindle. The iPad will have little effect on Kindle sales because it is so cheap, the battery lasts for weeks, it is light and works in more environments like outdoors/sunlight where the iPad is useless and too expensive to take to the beach.

I have a Kindle and I hate it. The books are WAY too expensive. It only does one thing (you can read books on it---WOW!!), but does not do it better than a real book. It is the most worthless device I own. I can't wait for an iPad....

[TomServo]

Why is it that every time I enter an Apple thread, I'm hit with the stench of urine?

Because the iPosse wets their collective diapers everytime Swords post a thread about their precious.

[TomServo]

500 of your fellow Freepers

And some of your customers....C'mon Sword - fess up...

[TChris]

Perhaps Apple threads should be moved to Religion and a [Caucus] tag attached? ;-)

[TruthHound]

Expounding on the industries which are being “fundamentally transformed” by the iPad (which I actually don’t even own, yet)...

We’re currently upgrading the scoreboard in the basketball gym of our local YMCA. It consists of a 52”LCD TV hooked up to a computer using Scoreboard software piped in wirelessly ... from an iPad. Player stats will also be tracked on a separate iPad.

You may have noticed NFL coaches talking to their quarterback on a wireless headset while hiding his mouth behind a colorful laminated play sheet. You’ll also see players on the sidelines reviewing analytical play photos in a binder. I predict that THIS YEAR we’ll start seeing those replaced with encrypted iPads. This crosses over to many other sports.

I ate at a restaurant a few weeks ago and the waitress took our order ... with an iPad. If you think about it, they could actually have their MENU on the iPad at each table with software for instant ordering, eliminating the need for a waitress at all.

I have a friend in the port shipping industry who has nothing but praise for his iPad. He uses it for inventory and tracking orders. He says it has eliminated dozens of paper forms, improved accuracy, sped up the entire process, and increased the entire company’s productivity.

My son just entered the 6th grade. In case you didn’t know, schools have eliminated the use of lockers by students (DUMB!). To avoid lugging 6 giant textbooks around in his backpack all day, he has one set of books at the school, and one set they gave him for home. By the time he finishes High School, all of his textbooks (and most of his work) will be contained on a future incarnation of an iPad. The books will be interactive with video, web links and other supporting resources. It’s already happening at all levels of schools.

This is just the tip of the iCeberg.

[Swordmaker]

Check out Fring. It'll run on just about any platform out there - Windows, Mac, iOS, Android, Symbian. Allows you to use any VOIP gateway (including Skype) for making and receiving phone calls.

Thanks, Puget. I'm going to check that one out. I appreciate it.

[Swordmaker]

Thank you, Jim.

[TChris]

I have a Kindle and I hate it. The books are WAY too expensive. It only does one thing (you can read books on it---WOW!!), but does not do it better than a real book. It is the most worthless device I own. I can't wait for an iPad....

Really?

You're the first person I've ever found who hates the Kindle.

Really, the very first.

Are you sure you didn't have unrealistic expectations? After all, the Kindle is for just one thing. It never pretended to be for more than reading. It does that very well.

Not better than a book? Really? How about 3,000 books? It's quite a bit smaller.

$10 for brand new titles is hardly "WAY too expensive".

I think you're making it up. Just like the "I'm a life-long Republican, but I'm voting for the Democrat!" folks.

The Kindle does what it was built for better than anything else. Don't buy a toaster and complain that it makes terrible milkshakes.

[microgood]

I have a Kindle and I hate it. The books are WAY too expensive. It only does one thing (you can read books on it---WOW!!), but does not do it better than a real book. It is the most worthless device I own. I can't wait for an iPad....

My wife has one and loves it. The reason I love it is that I have over 10,000 books in my garage because my wife is an avid reader of romantic novels. She buys about 40 books per month and with the Kindle she saves a lot over buying the books at the store plus I do not have mountains of them in the garage. When she fills this one up I will buy her another. She takes it everywhere she goes.

The real problem is what to do with all the books we already have.