Everyone who loves Apple’s products is fully aware that the company is innovative, always pushing the boundaries of what’s possible, democratizing breakthrough technologies in the process. How Apple does that, of course, is basically a secret these days. At best, we know that Steve Jobs decrees a product get made, and then it materializes.
The NY Times tries to capture this mystical sense in an article about process innovation published in the Sunday Business section. And I have to say, working in and around this dialogue, the article provides one of the more abstract explanations for the value of innovation I’ve ever seen. It talks about how sweet Intel, Apple and Google are but doesn’t say why they are able to innovate, and what that means to the rest of us. Unless innovation is tied to business growth, it’s an academic exercise. I practically expected a reference to Wikinomics here, the argument is so not grounded in concrete terms:
Yet successful companies realize that maintaining competitive advantage depends heavily on sustaining process innovations. Great process innovators often support basic research in relevant fields, maintain complete control over the creation of every aspect of a product and refuse to rely on outside suppliers for important components. Certainly, there are exceptions to these patterns, but even companies like Apple that buy essential processes on the open market nevertheless invest in gaining a working knowledge of the technologies and an understanding of their future arc.
And that has what to do with process innovation? This is the golden goose so far as companies today are concerned. Apple and Procter & Gamble, for example do have very successful innovation strategies. But abstractly talking about an innovation process and actually realizing one are two different things. And this article provides no actions that can be taken to instill such processes back at our own companies. It’s just more fauning over Google, Apple and Intel. What a squandered opportunity.
As has been reported widely, Apple’s iPhone Update 1.1.1 makes it again impossible to use an iPhone on any network other than AT&T and eliminates third-party applications installed through the so-called Jailbreak hack. The update, which introduces the WiFi iTunes Store to the iPhone, enables TV-out and some basic usability features, like double-tapping the home button to get to phone-call favorites.
On one level, I’m not that bugged by this behavior. After all, Apple issued a huge warning that installing the update could render unlocked phones inoperable and “might” stop third-party applications from functioning. I’m sure AT&T has been screaming at Apple to close down the unlock loophole since it hit a month ago, and Apple earns part of the revenue from iPhone service plans.
On the other hand, this is incredibly anti-consumer behavior. Most formerly unlocked iPhones now won’t even work on AT&T. They’re useless bricks (only unlocks from iPhoneSimFree can work again with AT&T). Why shouldn’t an iPhone be able to operate like an iPod Touch if, for some reason, the SIM card isn’t functioning? Why should it be a brick. People have paid good money for it. This is Apple bending over backward to please a partner notorious for ignoring consumer interests.
Worse still is the removal (they were scrubbed off of phones) of all third-party software. What possible reason does Apple have for this other than an insistence on total control? That’s as bad or worse than the mobile service carriers themselves.
Obviously, wait to upgrade if you’re unlocked to see if the hackers can stay ahead of Apple in the “cat and mouse” game that Steve Jobs described the other week. Does this bug everyone else as much as me?
Not that, uh, we have to pay attention to what the record companies think is Not Allowed, because we have already licensed the song for playback on any device if we bought a CD — we are allowed to play it on our iPhone already. Just not in response to someone calling us. The record companies have MADE UP some new, retroactive copyright and Apple is enforcing it for them. The result is, a million customers don’t get to do something cool with their iPhones.
Because of greed.
Honestly, I can see Apple saying, “Well, you see, the record companies would have been upset with us if we hadn’t charged anything for ringtones.” Yah, well, that’s the price you get for engaging. The price for owning the distribution of the content and the hardware and the software is that you end up making compromises in the hardware and software in order to protect the content.
Yow. There’s a lot more through the link, so read on. This is some harsh language from a NeXT true believer, and it’s essential reading. I’ve been pretty upset about the iPhone ringtone system, but Shipley nails what’s wrong with it. Fantastic stuff.
As expected, Steve Jobs at a press conference in London this morning announced the UK iPhone will launch November 9th, use the O2 network, cost £269 and £35 a month for an unlimited data plan. The phone will be available at the Carphone Warehouse, at about 1,300 outlets.
The iPhone will be more expensive, £269= $537, and there’s no 3G — which is common in Europe. Jobs said it’s to save battery power. 3G chips would reduce battery life to just a couple of hours:
“It’s pretty simple, says Jobs. “The chipsets work well apart from power. They’re real power hogs. Most phones now have battery lives of 2-3 hours and that’s due to these very power-hungry 3G chipsets. Our phone has 8 hours of talktime life. That’s really important when you start to use the internet and want to use the phone to listen to music. We’ve got to see the battery lives for 3G get back up into the 5+ hour range. Hopefully we’ll see that late next year. Rather than cut the battery life, we’ve included Wi-Fi and sandwiched 3G between Edge and a more efficient Wi-Fi.”
No announcement about other European countries, though it’s widely rumored it’ll be Orange in France and T-Mobile in Germany. Said Jobs: “We’ll be in a few countries in Europe in the next quarter.”
(Non-Variety translation: Rumor has it that Apple wants to change the price of iTunes TV downloads to 99 cents.)
I’ve been thinking and talking a lot about why Apple would want to force the networks to make less money per download on TV shows, and the best answer I’ve heard comes from my fiancee: Apple believes cheaper downloads will lead to more sampling, and therefore greater popularity for newer shows.
Think about it. You’ve heard great things about “How I Met Your Mother,” but you don’t want to spend the time or money to get the first DVD on NetFlix. The whole series isn’t available through On-Demand cable, and you’re definitely not sold enough to buy the box. With a full iTunes archive, you could try out the pilot for a buck. At $2, it feels too much like you’re over-paying for a set you might want later, as sets average out to about $2 per episode. At a dollar, it’s a product sample. For $2, you’ve already invested.
The real competition for iTunes downloads isn’t DVD box sets — it’s cable On Demand service. That’s what hasn’t clicked until now. The TV networks, because many of them also own record companies, can only view their product compared to song prices. But it’s an artificial comparison. Which will you play more times: A hot song you love or an hour-long episode of Heroes? If anything, songs should cost more than TV shows.
For myself, I would buy a lot more shows on iTunes if the price goes down — especially for series I don’t watch or from channels I don’t subscribe to. The more I think about it, the more I like it. It’s incredibly consumer-focused, but also focused on growing the audiences of series with niche followings. It means more revenue than On-Demand for the networks, as well as possible boosts for DVD season box sets.
What do you think, how would your iTunes habits change if the TV prices drop?
The iPod will get three new features at Steve Jobs’ media extravaganza Sept. 5 according to the rumor mill: a touch-screen, Wi-Fi and digital radio. I think two of three are likely:
1. The touch-screen is a slam dunk. It’s the natural successor to the scroll wheel. Who’d buy a new, high-end iPod without it? Case closed.
2. Wi-Fi is unlikely. What’s it good for? Sharing tunes with other iPod users in public, ala the Zune? Maybe, but I think not. Copy protection and DRM is too problematic. How about using Wi-Fi to sync tunes with your computer? Maybe, but you’ll still need a cable to charge the device, so what’s the point? Maybe Wi-Fi could connect the iPod to a set of speakers via an Airport Express base station and AirTunes? Seems like a lot of trouble for a pretty minor feature. Wi-Fi is good for getting on the internet, so unless the iPod is also getting Safari and e-mail, I don’t see the point of adding it.
3. Digital radio is the real killer. It’s a feature that could spell real trouble for the satellite radio industry. With digital radio, the iPod could be a portable TiVo for music, automatically recording favorite shows, rewinding live broadcasts and purchasing songs over the air. Digital radio is so consumer-friendly, it’s completely transformed the UK radio market in a couple of years, and though U.S. broadcasters seem terrified of it, the success of satellite radio is spurring them into action. As Wired News reported in July:
“In the United Kingdom, more than 4.7 million digital radios have been sold since 1999. Listeners browse station listings in an electronic program guide, pause and rewind content as it’s broadcast, bookmark specific programs or songs, and record them using postage-stamp-size memory cards. And starting in May, they can buy songs as they hear them on the radio, downloading them to computers, digital receivers or cell phones.
… IBiquity says that the HD Digital Radio Alliance, a consortium of U.S. broadcasting chains, will commit nearly $250 million in air time to promote the format in 2007. And UBC Media’s Simon Cole says that satellite’s head start in the United States might actually be good news for HD Radio. “Satellite is softening up the market,” he says. “It’s waking U.S. consumers up to what digital can deliver.”
Apple® today announced that it will not be selling NBC television shows for the upcoming television season on its online iTunes® Store (www.itunes.com). The move follows NBC’s decision to not renew its agreement with iTunes after Apple declined to pay more than double the wholesale price for each NBC TV episode, which would have resulted in the retail price to consumers increasing to $4.99 per episode from the current $1.99. ABC, CBS, FOX and The CW, along with more than 50 cable networks, are signed up to sell TV shows from their upcoming season on iTunes at $1.99 per episode.
Incredible. NBC has benefited from iTunes more than anyone else, and they’re throwing out crazy price increases. I mean, that would have made Friday Night Lights Season 1 cost $110! NBC is selling the DVD for less than $20 brand-new with more special features! If this is any indication of Hulu’s pricing scheme, it’s screwed out of the gate.
A lot of mystery remains about Apple’s big iPod event next week. Will we see widescreen touch iPods (what were known as “true” video iPods before the iPhone showed up)? Nanos with video? A shuffle that can scramble your brain?
What is certain is that, for once, Steve Jobs won’t demonstrate a new iPod video with a clip from “The Office,” as NBC Universal has announced its withdrawal from the iTunes Music Store as of December, according to the New York Times. While it’s possible that existing content will remain or that NBC will offer new content on an as-chosen basis like Universal Music has, it’s more likely that NBC is packing up its toys for Hulu.com, the bizarre commercial video service that NBC and News Corp. promise to launch “real soon now.”
This is a huge blow — NBC makes up 40 percent of all video sales, and I can’t think of a recent iTunes event that didn’t feature an NBC show, which really says something, given Steve Jobs’s close ties to Disney and ABC. Not a sign of doom, but a clear sign that Apple isn’t as secure in video as it has been in music.
Unafraid of Apple’s lawyers, Think Secret has a gallery of gorgeous screenshots and icons from the latest build of Leopard (9A527), which was released to software developers last week.
Above is the large version of the new Network Utility icon. According to Think Secret, almost all the icons in Leopard are now bigger, better and brighter.
And just as the icons are getting bigger, so too are the applications. According to Think Secret, Address Book has grown from 25.2MB in Tiger to 47.7MB in Leopard; Safari has grown from 6.5MB to 51.9MB; and Mail has grown from 49MB to 279.7MB.
Apple just sent out invites to a special media event at San Francisco’s Moscone West convention center on September 5 at 10AM — and music is clearly the theme.
There’s been lots of speculation that new iPods are on tap, including stubby, ugly iPod nanos and a touchscreen iPod Touch.
Photographer Frasier Spiers spotted this chappie with an Apple ‘do at the weekend grand opening of Glasgow’s new Apple store.
The rest of Fraser’s pictures in this Flickr set capture the character of Glaswegians better than any other the other pictures I’ve seen from the grand opening.
One of the things I thought strange about the other picture sets was the absence of drunks. If you’re out all night in Glasgow, you’re certain to encounter a few. Well, Fraser captured one. Fraser says this young man was extremely drunk, and boasted about his sexual prowess to the waiting line for hours.
I thought this guy was a drunken thug, but he’s nerd from GlasMUG cheering people on.
And here’s a kid who queued for hours in a Che Guevara shirt. Fraser writes: “The irony of wearing a Che Guevera (SIC) hoodie whilst queueing for hours to attend a retail store opening is beyond parody. “I wanted an iPod Shuffle for Christmas, but my mommy says that Apple exploits the workers! I got a packet of seeds and a sickle instead”¦.”
(Thanks Oleg for noting Fraser’s pictures in the comments).
The latest build of Leopard (build 9A527) has a default desktop that looks like some kind of Star Trek supernova in outer space, according to a leaked screenshot.
Here’s what it looks like in use. The outer space theme is used at least twice in Leopard: the Time Machine backup app also has a spacey UI.
As Phil Ryu notes, with the cosmic backdrop, Leopards’ interface looks like the control deck of a futuristic spaceship looking out into void.
Could Apple be trying to imply that Leopard is so advanced it’s positively science fiction?
Two Apple geniuses from Apple’s new store in Glasgow, which celebrated its grand opening this weekend. Photo by Setteb.it.
Gary Allen of IFOAppleStore, who travelled to Scotland from Berkeley to attend the grand opening, noted that the doorway smelled of urine. Scots are notorious drunken urinators in shop doorways. Link.
I am surprised to see the refurb discount be so deep — this suggests that Apple has had to replace a lot of iPhones here in the early going. Who’s sent theirs back? Go ahead, you can tell us. No need to be shy.
Great (and totally horrifying) story of customer service gone awry up at SFist yesterday. The writer in question had a PowerBook completely melt down and went to the San Francisco Apple Store only to be awarded a free MacBook Pro — which was shipped to CompUSA. No, really.
Yet, somehow we knew there would be at least one more hurdle before our computer woes had been resolved. Thank you, Fed Ex, for mistaking the number 760 Market (our s.o.’s office building — stalkers take note) for 750 Market, which happens to be CompUSA. Luckily, we were able to track down the package and obtain it from Scott, the sales manager at CompUSA, who not-so-subtly scolded us for not buying the computer through CompUSA.
Wow. That totally puts my worst Genius Bar story to shame, which was getting a free hard drive replacement in a PowerBook, but then having the video cable get crimped in the process, leading to spontaneous black-outs — and then losing the computer temporarily.
Anyone else had bad experiences with Apple Customer Care to balance all the good ones we’ve all had?
Everyone who joking referred to the keynote Steve Jobs gave in January as the critical moment of the iPhoneWorld conference just got a lot more ammunition, as a large number of Mac-related expected announcements that never surfaced back then just dropped together: Sexy aluminum, thin, iMacs; a new version of iLife; a new version of iWork; and some new features for .Mac. A random August product launch is the new MacWorld.
Many of the rumor-mongers were right on the money about the iMacs. They’re thin as could be, they use the exact keyboard that leaked to the web the other week, and their fronts recall almost exactly the back face of the iPhone. It’s a clever design move, extending the iMac as big brother of the iPod metaphor to a new iMac as big brother to the iPhone. That said, it’s hard to describe these as being a radical leap forward. They’re virtually the same design as the last generation, only thinner, hotter, faster. The desktop market is ripe for disruption.
The additions to iLife are similarly unexciting. As excited as I am that iPhoto now has event-organized cataloging, and the Magic GarageBand feature that can turn music played on a guitar into a trumpet or otherwise. But the new Web Gallery features on .Mac aren’t that different from what came before — they’re just much more appealing and creative than what came before. Definitely not a big enough shift.
iWork has finally been fleshed out into a real office suite, offering Numbers, a spreadsheet program that has been rumored at least since Columbus landed in the Caribbean. It looks very appealing, and I think I’m finally going to invest in it. I love Keynote, and Pages looks improved (hey, Apple realized that people want to write, not just lay out text!).
The “leaked” pics of a new iMac making the rounds are clearly a Photoshop fake made from images of Apple’s Cinema Displays taken from Apple’s website. See below.
The color also screams fake.
A new iMac is rumored to be introduced by Steve Jobs at a special event at Apple HQ on Tuesday — and everyone is hoping for a redesign. But Apple’s consumer machines do not come with metallic finishes. That’s reserved for the “pro” level machines. If the iMac has a new case, it will be made of plastic and will come in black, white or maybe other fruity colors.
With all the hubbub surrounding the release of the iPhone (can you believe it’s been more than a month already?), Apple’s introduction of miniature Apple Stores inside of Best Buys kind of flew under the radar. Which is kind of odd, because the Best Buy mini-stores represent Apple’s resurgence more than almost anything else that’s happened in Steve Jobs’s tenure.
After all, in the 1990s, Best Buy did such a terrible job selling Macs that Apple pulled is products out of the entire chain, focusing on CompUSA and Internet sales. Now, almost 10 years later, Apple returns on its own terms.
I checked out the Apple mini-store in the Best Buy in Santa Rosa, California on Saturday night, where I took a couple of photos. It’s an interesting set-up, all-in-all. Very consumer-focused, which makes sense, but I was surprised that Apple isn’t selling any Mac Pros at Best Buy at all. It’s MacBooks (and Pros), iMacs, and nothing else. The entire display centers on computers — not on iPods, let alone iPhones, which aren’t stocked at Best Buy at all. A very interesting positioning all around — given that it’s the iPod and its accessories that brought Apple back into most retail stores.
Macs star, and it’s about time. Click through the jump for another image from the store.
Columnist John Dvorak, who is perhaps the most hated pundit by Mac users because of his constant (and quote deliberate) Mac bashing, is now a Mac user himself — and he likes it.
In his latest PC Magazine Column, Dvorak confesses that he has been using an iMac at work for a couple of months, and it’s “not half bad.” After heaping on more weak praise, he says he has no plans to buy a Mac for personal use at home, but he increasingly finds himslef recommending the Mac to friends and neighbors who ask him what to buy! He writes:
“I can see why the Mac is gaining market share, because the rationale for using one is simple. Do you want to deal with the agony of antivirus, firewall, antispyware, and other touchy software subsystems, many of which do not work well? Or do you want to boot Microsoft Word and write a document and be done with it?
As someone who does recommend gear to people, I have to think to myself, “Should I recommend something that will come back to haunt me, or recommend a Mac with its higher price but lower hassle factor?” The answer is simple. I hate the idea of having to do customer service for people who cannot keep their systems clean, and that’s most people.”
Apple’s Q3 was the company’s best ever. It raked in $5.41 billion in sales, posting a $818 million in profit. Gross margins — the amount of revenue that is profit — is up to a whopping 36 percent. This surely is the highest in the industry. By contrast, Dell reported Q2 2007 margins of just 4.3 percent, earning $605 million profit on revenues of $14.1 billion.
Apple also reported 10 million iPods sold — up 21 percent on the year before; and 1.76 million Macs, up 33 percent year-on-year.
Apple’s stock is rebounding on the news: it’s up 6 percent after taking a hammering yesterday on AT&T’s iPhone numbers.
AT&T’s quarterly results said only 146,000 were activated in the first two days — so it looks like 124,000 people either waited a few days to activate their phones, or had trouble activating them, as was widely reported.
We now have definitive proof that a business world built on the quarterly earnings report is destined for self-destruction: Apple’s stock fell almost $9 because its partner AT&T “only” managed to activate 146,000 iPhones in its first day and a half on sale. Not that the activation figure directly reflects the number of iPhones sold.
Yes, I’m serious, and I’m totally bewildered. Analysts and investors are pretending that the second quarter, which closed June 30, would be the one that reflects the impact of the iPhone. Which is nice, except that the iPhone went on sale at 6 p.m. on June 29, and AT&T had serious network issues that prevented people from activating their phones until well into the next week. Which means that anyone who couldn’t or chose not to activate their iPhone until after midnight on June 30 got left out of this report.
Which is obviously a clear sign that it’s time to sell all of your shares in AAPL. Obviously. You know how, in movies, we’ve gotten to the point where people talk about the highest opening 5.5-day gross ever by a film released on a Tuesday in a month with a full moon that falls on a Saturday? This is the opposite. This is the smallest 1.5-day activation ever for an incredibly successful product. They chopped off Sunday, for heaven’s sake!
But this is the world that exists. It’s all about the quarterlies. And maybe that means that Apple did AT&T a disservice by not launching a week sooner. It shouldn’t have any impact on the long-term health of either firm. But it’s idiotic. Especially since AT&T experienced — wait for it — 61 percent total revenue growth!
Grrrr. Anyway, don’t read too much into these numbers. Apple will release its sales numbers soon, which are a clearer indication of how well the iPhone did in its first day and a half. Not that a day and a half of sales matters. It’s stupid. Can we talk about this in October?
Scott Walker, the assistant managing editor of the Birmingham (Ala.) News, has made a hack for the ages. Taking an old newspaper vending machine, as a base, he fitted a 17″ LCD screen to the front of the box and then rigged a Mac mini running PhotoPresenter to constantly stream the front pages of newspapers from the Newseum. As well as anything from his iTunes library.
It’s a wonder to behold. And all of this on deadline, too!
Via TUAW
BusinessWeek recently put together an interesting run-down of prominent Apple Design alumni and what they’re up to these days. It’s a good list, but far from comprehensive, as is required in any such piece. I did want to highlight a couple of people who didn’t make the cut.
