Do you think Apple is going to take a different path in products?

[LethalWolfe]

The announcement of the new 'budget' iMac I think illustrate's what Apple currently defines as the lower end of their target demographic. While inexpensive for a Mac desktop computer, it's certainly not inexpensive compared to other computers.

If the Health, Watch and Homekits became best of class (as iPod did in music players), that will add to profits. It will also help iPhone, iPad, Mac marketshare as if these new products sold very very well, there will be many non Apple users buying them, they will intentionally or otherwise migrate to Apple. More new sales, new App sales, etc.

HealthKit and HomeKit are just frameworks, not new hardware products and it's new hardware products that Apple' needs (like the rumored iWatch or super improved TV).

Adding new iPhone, iPad, Mac users is huge as these new sales will stay and provide ongoing sales in apps and iTunes content. Factor in a more useable Apple TV, and why would you buy various brands if you can get everything under one roof that are so heavily integrated

Sales via the iTMS are a pretty small part of Apple's overall revenue. Apple is a hardware company so any software and services they offer are there to entice people to buy Apple hardware.

 

[tdale]

The announcement of the new 'budget' iMac I think illustrate's what Apple currently defines as the lower end of their target demographic. While inexpensive for a Mac desktop computer, it's certainly not inexpensive compared to other computers.




HealthKit and HomeKit are just frameworks, not new hardware products and it's new hardware products that Apple' needs (like the rumored iWatch or super improved TV).



Sales via the iTMS are a pretty small part of Apple's overall revenue. Apple is a hardware company so any software and services they offer are there to entice people to buy Apple hardware.

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I'm surprised AppStore and iTunes is that low. Although, a hardware margin is a one off profit, while app and iTunes revenue is ongoing. That may become more important as users tire of the annual upgraded which is just incremental.

iWatch is a new product, Apple TV isn't. ATV needs to grown to the same status as every other media player, plays everything. WDTV as one example. I cannot see that.

Yes Health and Home kits are frameworks, but ironically for Apple they bring together the proprietary protocols onto one seamless function. That's innovative, and IMHO will promote iDevice sales for the kit users who do not currently use Apple. These kits are new. They may define Apple as the go to provider for health and home functions, that's pretty big

 

[McGiord]

Sadly the most recent release sucks:


"Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad."

http://www.apple.com/pr/library/2014/06/18Apple-Introduces-New-Entry-Level-21-5-inch-iMac.html

 

[LethalWolfe]

I'm surprised AppStore and iTunes is that low. Although, a hardware margin is a one off profit, while app and iTunes revenue is ongoing. That may become more important as users tire of the annual upgraded which is just incremental.

I agree that the update frenzy surrounding the iPhone (and to a lesser extent the iPad) won't last forever, though Apple would need much bigger margins from the iTMS if it hopes to offset declining hardware sales but I just don't think that's their game.

iWatch is a new product, Apple TV isn't. ATV needs to grown to the same status as every other media player, plays everything. WDTV as one example. I cannot see that.

Right, I know that TV isn't new, but ever since the Jobs' biography where Steve said he'd "finally cracked" TV everyone has been expecting a new and totally super awesome take on it (even an Apple branded TV).

Yes Health and Home kits are frameworks, but ironically for Apple they bring together the proprietary protocols onto one seamless function. That's innovative, and IMHO will promote iDevice sales for the kit users who do not currently use Apple. These kits are new. They may define Apple as the go to provider for health and home functions, that's pretty big

You are right that HealthKit and HomeKit can give some added functionality and life to the current iDevices but Apple's problem though is what happens when iPads and iPhones hit the mature stage of their product life and growth stagnates? What do they do when most people that are going to buy these devices already own these devices? In 2007ish iPod sales accounted for around 45% Apple's revenue and Mac sales made up about another 45%. Today, less than 10 years later, their combined revenue is about 13%. Apple obviously saw this coming which is why we have iPhones and iPads today. So what's next?

Maybe the release of the 5c and the 'budget' iMac are signs that Apple is trying to expand down market because they don't have anything on the horizon that they think will do iPod/iPhone/iPad type numbers?

 

[Bernard SG]

The directions where Apple intends to go with its products is actually pretty clear. They were already mentioned in this thread: car, wearables, living-room.
Wearables appear to be a limited niche, at least for now; whereas car and living-room are potentially huge, but have onerous third party interference:
- TV (living-room) is primarily about content, and content companies are notoriously clueless and obnoxious.
- Apple doesn't make cars, so they can't call the shots.

In other words, the major concern for Apple's future is not product concept, it's figuring out business models and partnerships that fit into Apple's vision of excellence.

 

[LethalWolfe]

The directions where Apple intends to go with its products is actually pretty clear. They were already mentioned in this thread: car, wearables, living-room.
Wearables appear to be a limited niche, at least for now; whereas car and living-room are potentially huge, but have onerous third party interference:
- TV (living-room) is primarily about content, and content companies are notoriously clueless and obnoxious.
- Apple doesn't make cars, so they can't call the shots.

In other words, the major concern for Apple's future is not product concept, it's figuring out business models and partnerships that fit into Apple's vision of excellence.

I guess I'm wondering about specific product speculation and how they'll hit the iPod/iPhone level of success for Apple as opposed to general categories like wearable, car and living room.

Specifically, what car-centric product could be the next iPhone? What features will an iWatch need to become so popular that it make up half of Apple's net revenue while continuing to grow the company? Apple has been trying to get into the living room for years with TV but hasn't been able to get above the fray which includes everything from other set top boxes, to Blu-ray players to video game consoles to smart TVs themselves. I wonder what Jobs meant when he said he'd cracked it?

 

[Bernard SG]

^ For cars, I don't think there's a need for a new specific product per se. An iPad mini (or the rumored 5.5" iPhone 6) would do the trick but the concept requires a docking interface that fully communicates with the car's electronics, which is posing a problem of standards.

 

[tdale]

You are right that HealthKit and HomeKit can give some added functionality and life to the current iDevices but Apple's problem though is what happens when iPads and iPhones hit the mature stage of their product life and growth stagnates? What do they do when most people that are going to buy these devices already own these devices?

Apple has a small global market share for the iPhone. The iPad share is reducing due to the MANY (and some pretty damn good) tablets out there. Macs are a very low market share.

IMO, when Healthkit and Homekit are out, I can see many non Apple users (which is the clear majority of users) getting into Apple, even if it is, "OK, we spent $X on medical hardware or home automation hardware, lets get an iPad Mini for it" They may not need to but Apple will advertise that there are many devices but THEY ALL WORK AS ONE WITH APPLE.

Potentially huge, partially based on PR.

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I guess I'm wondering about specific product speculation and how they'll hit the iPod/iPhone level of success for Apple as opposed to general categories like wearable, car and living room.

Specifically, what car-centric product could be the next iPhone? What features will an iWatch need to become so popular that it make up half of Apple's net revenue while continuing to grow the company? Apple has been trying to get into the living room for years with TV but hasn't been able to get above the fray which includes everything from other set top boxes, to Blu-ray players to video game consoles to smart TVs themselves. I wonder what Jobs meant when he said he'd cracked it?

Its not about the Product its about what functions are brought to market. Not what it is, but what it can do.

Car Stuff. Marketed as a product, although it will just be an iPhone in a dash

iWatch. Marketed as a product but its just an iPhone Lite

Apple TV, is just a lite, restricted iTunes player. Make it sit alongside other full media players AS WELL as an iTunes player.

Its about what can be done, although Apple will release these new "products" but really it is just a box with iOS in it, the key is that it can do more, such as a full Apple TV media Centre, Healhkit, Homekit, iWatch, and new capability to the other iOS devices.

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In other words, the major concern for Apple's future is not product concept, it's figuring out business models and partnerships that fit into Apple's vision of excellence.

Yes

 

[tdale]

Sadly the most recent release sucks:


"Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad."

http://www.apple.com/pr/library/2014/06/18Apple-Introduces-New-Entry-Level-21-5-inch-iMac.html

I think the recent budget iMac is a good idea. I also think the statement above is from Apple, years ago, not now. They did that then restricters the OS and features to allow others to create a similar experience, but be free of inane restrictions

 

[McGiord]

I agree that the update frenzy surrounding the iPhone (and to a lesser extent the iPad) won't last forever, though Apple would need much bigger margins from the iTMS if it hopes to offset declining hardware sales but I just don't think that's their game.



Right, I know that TV isn't new, but ever since the Jobs' biography where Steve said he'd "finally cracked" TV everyone has been expecting a new and totally super awesome take on it (even an Apple branded TV).



You are right that HealthKit and HomeKit can give some added functionality and life to the current iDevices but Apple's problem though is what happens when iPads and iPhones hit the mature stage of their product life and growth stagnates? What do they do when most people that are going to buy these devices already own these devices? In 2007ish iPod sales accounted for around 45% Apple's revenue and Mac sales made up about another 45%. Today, less than 10 years later, their combined revenue is about 13%. Apple obviously saw this coming which is why we have iPhones and iPads today. So what's next?

Maybe the release of the 5c and the 'budget' iMac are signs that Apple is trying to expand down market because they don't have anything on the horizon that they think will do iPod/iPhone/iPad type numbers?

There are some key drivers for what they are doing;
-The volumes over time are huge comparing Macs vs. iPods vs. iPhones vs. iPads
- People multiply, in my personal case my Father gave us the Apple fever, me and my siblings, and now his grand kids all have it too.
- Apple is aiming to expand in non mature markets, and it will continue: Asia, Middle East, South America and Africa.
- The emerging generation of kids who are educated using iDevices will have the need of owing an Apple products when they have the power to personally buy them. That nice feeling of buying your first things with your own money is obvious, just browse around the forums
- Certainly a simple repackaging of the same device will not be enough, but there is confidence that in the last 3-5 years they Cooked something with Steve's formula to establishe well defined processes that will keep Apple hiring talent and buying where they are lacking. How successful it will be...? We'll see.

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I think the recent budget iMac is a good idea. I also think the statement above is from Apple, years ago, not now. They did that then restricters the OS and features to allow others to create a similar experience, but be free of inane restrictions

Yes, a good idea, and poorly executed. A real low budget iMac that doesn't suck would be at $500-$600. They can make it.
The marketing text is certainly old and it sucks that they used it for this release. The person who released it should be moved to another job, like into Apple archives to organize all the documents and tag everything so they understand what is old vs. what is current and future.
What do you mean in your last sentence? Please explain it, thanks!

 

[Felasco]

to survive - that seems a little melodramatic don't you think. They're in no danger of going out of business any time soon.

I've been working online for 20 years, and have seen a remarkable number of industry leading big dogs come and go in all kinds of niches. Entire niches can go poof in what seems the blink of an eye.

I don't see a pending imminent demise of Apple either, but worrying about such things is the mindset necessary to survive. Success tends to breed complacency in any person or company, and complacency is the beginning of the end.

Steve Jobs is not last Steve Jobs. As we speak one or more other brilliant 22 year olds we've not yet heard of are working feverishly in their garages with the hope of overturning everything. Sooner or later, one of them will succeed.

Anybody here old enough to remember when Microsoft was the undisputed king of the hill, and even Steve Jobs was giving interviews saying Apple's demise was imminent?

That era too seemed like the final word when it was happening, and before you knew it, Apple was back on top and the top brass at Microsoft started bailing out on their creation.

 

[Felasco]

Is it possible that apple is planning on taking a different direction to survive? instead of just having macbooks..iphones..ipads.. They would have new things like iCar..iWatch..iShoes
things like that ?

I don't know when it will happen, but sooner or later gadget mania will fade. Gadgets are exciting now because they're relatively new, and new things are fun. But nothing can remain new forever. At some point the gadget upgrade process will start to become boring.

As example, Apple no longer charges for new versions of OSX, perhaps in the realization that new versions are no longer exciting enough to actually buy.

As example, how excited do you get when a new version of your TV, refrigerator, washing machine, car etc come out? It's not that you don't care at all ever, but it's not a pressing enough matter to inspire your daily participation in a forum on the subject. You're not interested enough to buy each new version, or even know they exist.

TVs, refrigerators, washing machines etc still exist, and people still buy them, but creating the kind of buzz hype that is Apple's core talent is close to impossible. If Apple wants to retain it's brand as the exciting place to be, sooner or later it will have to ride the wave to the next era beyond gadget mania.

It's a bigger problem than just Apple or gadgets. Apple's products tend to revolve around connecting with other people. What happens when people start to become ever more boring to you?

This is probably impossible to conceive of when one is in their twenties, a highly social time of life. But as the years go by, and you start to experience the same patterns with people over and over and over again, year after year after year, the perspective can change.

My extremely speculative prediction is that one of the coming waves will be the arrival of software based pseudo human entities, who by their very nature can be customized to please our every little whim far more than our fellow humans ever can be.

You read it here first. Well, probably not, but anyway, that's my rant.

 

[tdale]

What do you mean in your last sentence? Please explain it, thanks!

I said "They did that then restricters the OS and features to allow others to create a similar experience, but be free of inane restrictions"

Dang spellcheck, I can't eve decipher it!

My belief is that iOS has always been overly restricted, thats all you hear of from non Apple users, and they are right. Recently, and more so with iOS8 there is a clear freeing up of these inane restrictions. Many will say its an Android catchup, and thats correct, but to me, its a realisation that in todays modern smartphone, these silly restrictions are bad for sales and reputation. The non Apple and anti Apple users frequently admit the positives of iOS, BUT the restrictions are a put off. Thats going, awesome. Integration is being added even further, thats awesome. Proof, is on another tech forum I am on, that is full of android users, some are saying that iOS now gives them to desire to go to Apple. Apple can still have a walled garden, vetted apps, and provide same features as elsewhere, that is happening.

 

[jnpy!$4g3cwk]

My belief is that iOS has always been overly restricted, thats all you hear of from non Apple users, and they are right. Recently, and more so with iOS8 there is a clear freeing up of these inane restrictions. Many will say its an Android catchup, and thats correct, but to me, its a realisation that in todays modern smartphone, these silly restrictions are bad for sales and reputation.

Actually, I'm one of those folks who worries about some of the restrictions being loosened. Security is the name of the game. I would hate to see anything that damages iOS security become accepted.

 

[tdale]

Actually, I'm one of those folks who worries about some of the restrictions being loosened. Security is the name of the game. I would hate to see anything that damages iOS security become accepted.

You are assuming that loosening restrictions equals loosening security

 

[jnpy!$4g3cwk]

You are assuming that loosening restrictions equals loosening security

I'm saying that I don't know. For example, options from different sources for alternate keyboard functionality sounds good, but, who knows, maybe an integration bug on the part of the third-party company will allow a keystroke sniffer to be installed by a hostile website.