Maccast Members 2011.04.02 - Apple, Winning It
V Looking at the numbers
* Gartner said $9.6 billion was spent on tablets in 2010. Apple had revenue of $9.56 billion from iPads in 2010. Does that mean they had almost 100% market share?
* IDC put the number more at 83% for 2010
V In PCs Apple had a 9.7% share based on Sales according to Gartner
V More significant is it share was up 23.7% for the year. With the exception of Toshiba (14.4% growth), most other PC makers shares were down 6-10% Acer was down over 30%
* Acer's CEO stepped down this week citing disagreements with their board
* On iPhone's Asymco showed Apple with just 4% of the unit market share in Q4 of 2010, but estimated that they garnered about 50% of the industries profits.
V The Post PC era, 35 years in the making
* Apple was established April 1st 1976
* The original Macintosh was always envisioned by Jobs as an appliance
V Apple's whole vision has always been about simplification of technology
* Only a 1 button mouse, not buttons is better. Trackpad.
* No one wants a stylus, we have one built-in (finger).
* Bonjour (zero-configuration networking)
* No step 3.
* Thunderbolt isn't a new port.
V The significance of dropping "Computer" from the Apple name is clear
* Apple never really aspired to be a "computer" company.
* 2/3rds of Apple's revenue now doesn't come from devices that people would traditionally consider to be a computer.
V Closed is open
V An 8th grade tech blogger J-P noted some things about an iPad's "openness"
* "The iPad is more open to more people".
V The technology isn't fighting to non-technical consumers.
* Heck, babies can use it.
V A "closed" app store appeals to a consumer who has had their PC infested with viruses and malware
* An then likely been made fun of my their techie friend who they called to help clean up the mess.
* Consumers are fed up and just want something that "works", and guess who is offering it?
* "Specs don’t matter all that much, so long as the tablet performs well" - John Martello
V Biting the bullets
* Consistency, one stop shopping (App stores), less is more.
V What you "can" do is becoming more important than having better technology that you can't use.
* You can have better specs, but if it doesn't work for the consumer what good is it?
* Android has Flash, kinda. Not on all devices and not yet. (Xoom didn't get it until a month later and it is still beta).
* Google says the Honeycomb tablet OS isn't finished yet, but it's showing up on shipping tablets.
* Xoom have 4G, but not till later and you'll need to send back your device for several weeks to get the upgrade.
V It's all about the apps
V J-P pointed out that the iPad has all the apps and all the things his friends want in a "PC"
* Facebook, twitter, web, email, notes, etc.
* Can easily try new apps
V Apple said competitors tablets have "hundreds" of Apps (iPad had 1,000 at launch).
* Recent tech reports have the numbers at less than 100 and most of those are scaled up, not native interfaces
* Worse the scaling experience can be different depending on the device due to non-standard screen sizes.
V Who's market are we sharing?
V The market in the consumer space for traditional "PCs" is dwindling. Apple obviously saw their market share was going to erode.
* Apple creates markets when they need them
V It's deliberate and unique to Apple.
* Based on an insight of what consumers want
* Influenced by geeks and simplified for the masses
V Technology that Apple "consumerized"
* And by this I don't mean first with a consumer version, i mean a popular one.
* The home PC, Apple II
* The digital music player, iPod
* The smart phone, iPhone (OK, I'm reaching here a bit)
* The tablet PC
* Apple's core business has always been in the consumer space.
* Competitors are missing the point because they are still going after the tech niche (they sell to the IT Pro, the geek).
* In the consumer space, which market is bigger? Tech geeks or "the rest of us"?
V My mom doesn't care if the camera is 1 MP or 10 MP.
* Does it look good on Facebook and can I figure out how to get it there.
V Post PC on your Mac too
* Lion is going to extend a lot of this "consumerization" to the desktop
* Look at the "App Store".