“If Apple were to spin out a minority stake of its iPod business, it could rake in big bucks in an initial public offering. With the iPod on track to become a $1 billion business in the next year or so, Apple could expect to pull in at least that amount by selling a 40% stake. Then, Jobs could let someone else run the daily operations and the music side of things, including iTMS,” Alex Salkever writes for BusinessWeek.
“This would be great because Apple more than ever needs to focus not just on the Mac platform but on Microsoft’s Windows, too. It has done well so far in building iTunes software and iPod devices for Windows. But if it really wants to become a major consumer-device company, it will need to ditch its Mac bias entirely. If Apple had rolled out the iPod and iTunes for Windows and Mac users at the same time, its dominance of the digital-music player market might have been far more complete and achieved far more quickly,” Salkever writes.
“Of course, I’m not holding my breath. Apple and Jobs have always served their core market of Mac diehards first. That’s great for the Mac, but it limits their ability to attack the broader market,” Salkever writes. “Competing in the broader market is what Apple clearly intends to do with the iPod and digital music in general. But reaping a couple billion dollars in the process would certainly help Apple return to what should be its focus: figuring out how to move beyond Macs to make killer consumer products that are relevant in a Windows-based world.”
Full article here.
MacDailyNews Take: Yeah, Apple, forget about the Mac and, instead, create innovative devices and software for Windows. It’s a Windows-based world, after all, right? Rubbish. If you haven’t noticed, Alex, using Windows sucks. Viruses, worms, adware, spyware, patches upon patches, and the user interface compared to Mac OS X is primative and inconsistent at best.
So, your mainstream, average, “good enough for me,” Windows-using press sees that Apple’s iTunes for Windows is of such high quality, that now they want more Apple applications for Windows? Why can’t they make the logical leap that NEARLY EVERYTHING on the Mac is like the experience they’re having with iTunes for Windows (actually it’s better) and seriously reconsider the Mac? Why should Apple throw the Mac baby out with the bathwater? Why don’t these media types review the Mac OS X experience without bias and show the average person that a Mac would work better for them, and provide much more enjoyment, than a Windows PC? Oh, wait a sec, isn’t that really Apple’s job?
What Apple should do is take some of their huge pile of money (some $5 billion at last count) and show the world Mac OS X. Now there’s an interesting concept, huh? What’s the big secret, Steve? The average Joe and Jane on Main Street has absolutely no idea what Mac OS X is, what it can do for them, and why it would be better for them than Windows. Don’t believe us? Just ask around a bit. What you’ll get is, “Mac OS X, what’s that, who cares? I though Apple made iPods?” It’s sad. But, hey, if you buy a PowerMac G5, it’ll blow a hole in your house and slam you against a tree! Cool, huh? Makes Joe Public want to run right out and plunk down their credit cards, right? Wrong. Amateurish, idiotic marketing failures designed to waste money and not sell Macs – is that Apple’s goal? Apple’s current Mac OS X marketing sucks worse than Windows.
Move beyond market and serve Windows market.
Uhmm, I did not realize MS pundits where THAT worried. Seems Glaser #2.
On one hand I could see spinning off iTunes as a jukebox & store that works with Apple’s iPod. I can’t see spinning off the iPod hardware though. If they ever decided to permit other players to work with the iTMS then as a spin-off that would make sense. Filemaker, Inc. does well as an Apple subsidiary partly because the windows folks no longer associate it with Apple.
On the other hand, Apple is getting tons of free publicity and that, in time, will drive more people to consider other Apple products.
“If Apple had rolled out the iPod and iTunes for Windows and Mac users at the same time, its dominance of the digital-music player market might have been far more complete and achieved far more quickly”
50% of all MP3 players sold. Sounds pretty complete to me. Apple has big supply problems with the iPod mini because the cutting edge drives used can’t be made fast enough. I guess it would have been better for Apple to have had worse supply problems with the iPod when it was first released.
Apple has already licensed iPod to HP and there’s no reason that this policy will not be extended in the future!
Discussing an iPO only underscores the brand value of iPod!
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http://homepage.mac.com/johnhood
I don’t think it’s appropriate for MacDailyNews to be criticizing Apple marketing. I am worried that Apple is slowly abandoning the Mac for iPod and devices to come. MacDailyNews should be supportive of Apple, not trying to tear Apple down.
“What’s the big secret, Steve?”
Now that’s the billion dollar question, isn’t it? You don’t get to be a multibillionaire by being stupid, so what the hell is Jobs doing? He has Mac OS X, which when I show it to a longtime Windows user, causes drool immediately, and Jobs seemingly refuses to tell the world about it. WHY???
I think there is some sort of backroom deal with Gates or something. Steve Jobs couldn’t be as stupid as he seems when you look at Apple’s marketing of Mac OS X.
Who’s to say that Apple isn’t working on a whole slew of successful items equally as cool and innovative as the iPod? If so, then why would they even dream of spinning any one of them off? I believe the iPod/ITMS is only the tip of the proverbial iceberg when referring to Apple’s coming innovations. And, MacOSX will certainly serve it’s role of helping integrate these technologies. Remember, since it’s a “modern OS” it could easily be embedded into devices much like many items are doing now with Linux.
Keep your hats on ladies and gentlemen, we’re in for quite a ride in the next few years!
The Mac is dead, Apple just hasn’t told you, yet. The Mac could induce continuous orgasms 24/7 and not sell. The world has moved on. And, while I agree that the Mac OS X currently is the best computing experience I have ever had, the world will ignore it. Too much money invested in Microsoft. Face it, the Mac is already dead, even while it it by far the best solution available today.
Actually, selling a part of iTunes Music Store might make sense, but in a different way and for a different reason. Selling a 5% stake in iTMS to each of the majors would give them a very good reason to support the AAC/iPod platform. Investment by the major music companies would also send a signal to the investor community that iTMS is iin it for the long haul. As long as Apple has the majority interest it will still be their candy store. I’m not sold on the idea, but it could have some merit.
Congrats to MDN for tearing Apple and Jobs new ones over their mishandling of Mac OS X marketing. It is totally abysmal, really bad. Thanks for calling them on it. Hope it helps somehow.
Ever tried to switch your buddies to a mac… and failed?
This is how it works: Assure them, they will receive a free sixpack of beer from you everytime their Mac is infected by a virus in the next two years.
And don’t worry about abstinence: There still plenty of reasons for drinking left…
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So all you marketing geniuses here…can a single one of you come up with an effective “15” second ad for something as complex as an operating system? How about in “30” seconds.
A good ad focuses on just “one” thing (or feature). What would that be?
MDM, quit harping and beating a dead horse. Run a contest for these whiners.
Oh, Peter, I pray that you’re wrong.
Frank,
I have sold people on Mac by explaining no viruses, no worms, and showing them Expose, the Dock and iPhoto. Apple needs a series of TV ads – one that shows iChat AV, one the shows iPhoto, etc. – pepl eusing the Mac for everyday things, doing things in a coll way. And then, God forbid, Apple actually needs to spend enough money to hit people enough times (frequency) which they never do because Steve Jobs doesn’t understand marketing on TV. I know this from personal experience. Until or unless Jobs gets it, forget about Mac market share gains and enjoy the Dell ads instead.
Pimping website, apologies if this annoys.
If you’re looking for unbiased “review” of a Powerbook 17″, have a look at http://www.happymakinggames.com/switch.html
I just bought a PB17 in addition to some Thinkpads, and the experience so far has been very good. So good that I will sell a Thinkpad (T40p) and buy another PB, this time a 15″. Then later some eMacs or iMacs for some family members. That will make a total of 4 minimum.
Anyway, I’m all about “spreading the good word” since my partial switch, my friends and colleagues must be getting tired of me and hopefully some will switch to, or at least add, a Mac. Oh, and hopefully my friends and colleagues will stop ‘poo-pooing’ the Macs.
It’s over folks:
“Stroll the corridors and the atriums on Apple Computer’s corporate campus these days and you will notice something missing. Gone are the posters and graphics accenting the company’s sleek personal computers. In their place, in the main lobby, is a striking, three-story-high billboard celebrating Steven Jobs’ brand-new billion-dollar consumer electronics business — the iPod digital MP3 music player.”
http://www.contracostatimes.com/mld/cctimes/8593063.htm
This should be the OS X tagline:
Linux power, grandma friendly
Steve J has some major decisions to make. Like it or not, the iPod is an MP3 player. I agree with Salkever that this market will quickly become commoditized. Apple will either have to give in to WMA and support it on the iPod, or champion AAC by licensing Fairplay to the other player manufacturers. Defending the iPod turf might be best in the short run, but I think promoting AAC might be best in the longer term.
As for the Mac, I think it’s going to boil down to what Apple wants to do with MacOS X. If they want to make any headway in business, they need some hardware partners. Big business in particular doesn’t like putting all their eggs in one basket – they like being able to get their hardware from a variety of sources (funny how that doesn’t apply to software). Apple may have to consider licensing the OS if they want to break out of the niche market.
They could also go after the consumer a little more aggressively. This would cut into their margins however. I just don’t see where the status quo is going to work for them at this point. Hopefyully, WWDC will provide some insight into where the company is going.
Anonymous writes >>Apple needs a series<<
TV advertising is only effective when repeated over and over. The iPod ads do this, they aren’t a series. I agree that if one personally demos all the neat stuff, people drool. But a TV ad needs to run one theme for a few months. So, which “one” feature/thing would you run? It has to be simple and quick just like the iPod ads.
As far as Dell ads, they advertise price or specs and aren’t advertising a complex OS. Not a 1-to-1 comparison.
Stu writes >>Linux Power<<
The “average person” I know could give a shit about Linux. They might have heard the name but know nothing about it.
Peter – I guess we can add you to the list that keeps telling me that Apple/Mac are dead. Join Dvorak. He’s been wrong since 1986.
Michael – Don’t believe everything you read in the press. Apple is all about the iPod these days because it is the latest craze. But considering that the iPod unit of Apple and the Macintosh unit of Apple are 2 different animals, it’s not like the same people are working on them (other than J. Ive) so it’s not like they are neglecting working on the Mac for the sake of the iPod.
Geez, what kind of downer pill did all of you take today?…
…”The Mac is dead, Apple just hasn’t told you, yet. The Mac could induce continuous orgasms 24/7 and not sell. The world has moved on. And, while I agree that the Mac OS X currently is the best computing experience I have ever had, the world will ignore it. Too much money invested in Microsoft. Face it, the Mac is already dead, even while it it by far the best solution available today.”…
Just like the Amiga, the Mac will never die, PERIOD!
They could use a label, like THX, for iTMS/Fairplay approved audio players. They get to ensure AAC/Fairplay only works with quality players then.
Columnist’s don’t know their ass from a hole in the ground.
They write to troll and generate eye contact for advertising.
If they had any brains they be a CEO.
What a bunch of crap. Apple is doing just fine in both computers and with iPods. Sales are good. The Mac Platform is not going away. The iPod right now is the hot item. So Apple’s marketing efforts should be focused on the iPod & getting as many sales as possible before it is no longer the hot item. Wait…they are doing that!! Sounds like smart business to me.