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The Slate article referenced by Umair finally gets to the revolution in its last paragraph. Apple's leverage will come in year 5 of its AT&T contract, when it can demand better terms if the iPhone is still way ahead of other handset makers. Or if wifi/wimax becomes widespread and 3G/4G/+ cellular can be bypassed - Why else would Jobs keep focused on WiFi as the solution to the EDGE problem?
As for Umair, his previous writings have harped on about how Apple's "closed" iPod (and Mac) system was a loser and that Apple had to change to make any headway. Well, Umair may have finally seen the light but he then says that Jobs hadn't recognized the winning strategy until recently. As I commented on his blog, Jobs' strategy was declared on the day the iPod worked with the PC, and maybe even earlier, if the Apple retail stores initiative was, even at the beginning, something more than just making a place for the Mac's to get a fair shake.
(From my comment on his blog) Lots of things have to come together to make this strategy work. One, there has to be a current of dissatisfaction in the related market. Two, the Apple product has to truly break new ground in combining software and hardware and UI and design. Three, the marketing (Jobs, ads, videos, etc) has to fill the customer dissatisfaction with a clear vision of a better future. Four, the retail chain and customer service has to augment the product; almost like customer service is an extension of the UI. There might be more but these four seem to be at the top.
Apple is executing well on these for the iPod (music and radio industry) and likely the iPhone (cellular industry). However, the AppleTV (movie/TV content, cable/TV industries) has yet to move the commercial content producers, so Apple has turned to other avenues like YouTube to make the AppleTV more desired as a product.
Let's add two steps:
1. Enormous sales potential
One addresses the fiscal challenge that Apple faces, related to its scale as a company: Wall Street desires enormous growth, regardless of the needs and wishes of the company itself or its customers. So Apple must pick a market space that will generate astronomical sales over a five year period—sales that will need to double again in the following period.
2. Highly captivating content
So, yes, TV is a great candidate for another reason, another step: Apple best pick markets where it does not have to generate content but can vendor highly desirable, consumer content.
Double the XBox 360 buzz? Whew!
Commenting by HaloScan
