Apple is not Hardware

Published on April 8, 2006 By Dr Guy In Personal Computing

With all do defference to Satan's Advocate, Apple is not about hardware! They suck at hardware! They have had some great ideas, but they have all died on the vine!

So what is Apple great about? Geez! This is a no brainer!

They are great about SOFTWARE.

Ok, why do I say this? First, they had their own platform. No one could run on it (well, BEOS and LINUX), but that was not GOOD enough! So they went to Intel! Who is running on Intel? Microsoft!

So what hardware? Firewire? Fantastic! WHere is it? USB2.0? Where is it? Everywhere, but, OOps! That is Intel! (along with so many other mainsteam standards! - HInt to Apple. You want a standard? Dont charge for it!)

GIve me a break. Both Microsoft and Apple had some great hardware ideas. They even marketed them. Made some money on them as well. Remember the KB and mice form MS? iPod?

SO how much do they bring in versus total revenue?

Garbage! Neither company is a hardware company! HP and Dell are Hardware companies. Neither is trying to be your OS. They are just going to sell you a cheap way to get to your OS!

Now the bloom is off the lilly. APple has basically admitted it is not a Hardware company. Oh, it will continue to exercise QA on its machines. But they will now run Windows as well. Another {shock} OS.

Apple just made the best move of its life., or its death knell. If they decide they are a software company, they have a chance to beat microsoft and gain a signirificant advantage.

If they decide they are still a hardware company, they are going to be crushed. Not because they dont know their OS. But because they dont know hardware, and never have.

Say what you will, but Apple is not competitive in hardare. That is why they have never been more than niche. If they realize what they are, they have the power to break the microsoft monopoly.

My call? They wont realize it.

Comments

Adamness

on Apr 08, 2006

Apple, Dell, HP, etc. take hardware (processors, memory, mboards) made by other companies and stuff them into their own boxes. Not to mention the iPod, which certainly can't be overlooked seeing as how it makes up such a significant portion Apple's revenue.

Microsoft also takes hardware and puts it in their own boxes, but rather than doing it with PCs, they've done it with gaming consoles.

Microsoft and Apple make operating systems, as well as other software to work with their respective OS's. But there is no reason why they can't branch off into hardware. Both have done it quite successfully.

Both companies are actually quite similar, but with somewhat different markets.

Larry Kuperman

on Apr 09, 2006

Define "successful" Adamness. Microsoft lost $1 billion in the first year of the X-Box.

For both companies, hardware is the loss-leader that sells software and content. Read their financials.

Apple is defining itself as a digital media provider. It is no accident that Steve Jobs now sits on the board of Disney. He knows where the money is.

Adamness

on Apr 09, 2006

Doesn't matter what happened in the first year. Sony is going to lose a lot of money on the PS3. If either company thought that their consoles, or any product for that matter, wouldn't add to profits, they wouldn't put it out. It may take one or two years, but the Xbox has brought money into MS, just as the PS3 eventually will.

Dr Guy

on Apr 09, 2006

Not to mention the iPod, which certainly can't be overlooked seeing as how it makes up such a significant portion Apple's revenue.

You would be surprised at how little of the bottom line the iPod contributes.

Yes, MS and Apple can do hardware. But then GM can do tires as well. However, that is not their business, nor are they particullary good at it.

Dr Guy

on Apr 09, 2006

For both companies, hardware is the loss-leader that sells software and content. Read their financials.

Exactly! Microsoft learned early it did not have to provide the hardware for its software (it is just bleeding big time on the xBox to corner the market). Apple still has not figured it out. And that lame attempt at cloning was half hearted and stupid. If you are going to allow clones, get out of the business of the clone makers!

Dr Guy

on Apr 09, 2006

It may take one or two years, but the Xbox has brought money into MS, just as the PS3 eventually will.

You have not been following the news apparently. Microsoft is trying to get a foothold in the market, and so its other operations are supporting the xBox. It is Market penetration on the part of microsoft. Once they get it, then they can start making a profit. But SOny and Nintendo have proven to be tougher than thought, and if things do not change, expect the xBox to be history in 2 years.

messybuu

on Apr 09, 2006

Last time I checked, Apple made Macs. Granted, not all components of Macs are developed by Apple, but Dell doesn't develop every single part of their computers either. Now, one could argue that Apple develops Macs to sell OS X, but I'll remain unconvinced until I see something that supports such a view. The Apple Store itself advertises its hardware more prominently than its software.
If success is defined by beating Microsoft, then Apple will never win, even if it becomes only a software company. It's like with Nintendo. Has Nintendo been unsuccessful the past few years because they haven't crushed Sony? From what I've read, they seem quite pleased with the money they've made even though they don't have the highest marketshare in gaming.
By switching to Intel and facilitating running Windows on Intel Macs, that is more evidence that they're a hardware company moreso than a software company. After all, what they're saying is: "Buy our computers! They'll run both OSes!" rather than "Buy our OS! It runs on the computer you already own!"

Kevin_C

on Apr 10, 2006

Now, one could argue that Apple develops Macs to sell OS X, but I'll remain unconvinced until I see something that supports such a view

What more do you need to be convinced than the fact that Apple only supports OS X on their hardware? If Apple wasn't in the hardware business to sell their software they'd do like DELL does and just bundle an OS with their hardware package.

The Apple store advertises its hardware more prominently than its software because the software is only available with the hardware. This is certainly the case with the new Intel port of the OS as it will never run on the old hardware configurations.

By switching to Intel and facilitating running Windows on Intel Macs, that is more evidence that they're a hardware company moreso than a software company

Again, you're ignoring the fact that their software is a MANDATORY piece of every one of those new systems. What they are doing is getting their OS into as many hands as they can. They are saying, buy our new PC, it'll run XP until you get used to OSX then you won't need MS anymore.

I'm not convinced that Apple is a hardware or software vendor. To me they seem to be whatever they think will make them the most money. Are they trying to take out MS, probably not, but if they got even 1 percent of existing MS users to switch to the Apple platform they would consider that a win.

Dr Guy

on May 01, 2006

Reply By: Kevin_C

Reply By: Satan's Advocate

Sorry I missed your posts when you posted them. Thank the anonymous spammer for returning these old articles to the top of the heap. Points taken. I would responde to both of you, but you have a good debate going on, so I will just read and enjoy.

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