Apple spreading itself too thin?

Apple Store“Apple’s ambition may be starting to get ahead of the company’s ability to achieve it,” Troy Wolverton writes for The Mercury News.

“Renowned in recent years for its operational excellence, Apple in the past two months has delayed two high-profile products, the Apple TV set-top box and now, it said Thursday, Leopard, the upcoming update to its OS X operating system. The company pushed back the release date of Leopard so it wouldn’t have to delay an even more highly anticipated product, the iPhone,” Wolverton writes.

Wolverton writes, “The problem Apple is running into is that it’s a relatively small company compared with tech giants such as Hewlett-Packard and IBM, said Van Baker, an analyst with research firm Gartner. As of last fall, Apple had about 18,000 full-time employees, compared with 156,000 for HP, according to the companies’ annual reports. ‘Clearly there’s evidence that they’re not executing to the same level they have in the past,’ Baker said.”

“While Apple hasn’t been known for such delays, they’re not surprising, Baker said, noting that Apple is ‘broadening their product offering, and they have only so many engineering resources to go around,'” Wolverton writes.

Wolverton writes, “Apple said Thursday that it was delaying Leopard, the fifth update of its OS X operating system, because it had to pull some of its engineering and quality assurance personnel from that project to help out with the iPhone. The much-hyped device, which Apple plans to release in June, will contain a new, slimmed-down version of the OS X operating system, which powers Apple’s Macintosh computers.”

Wolverton writes, “By shifting resources to the iPhone, the company is favoring an unproven product that will compete in a very challenging industry, notes Richard Shim, an analyst with IDC, a market research firm. The delay – and the reason behind it – are ‘a risk and a sign of how Apple is changing and diversifying,’ Shim said. ‘It’s also a sign that they’ll have to be more careful with spreading themselves too thin.'”

Full article here.

MacDailyNews Take: You can’t shift paradigms without pushing the envelope beyond the limit. And Troy Wolverton’s penchant for the negative angle on anything to do with Apple is tiresome (here’s but one example).

Related articles:
eWeek’s Morgenstern: Apple’s Mac OS X Leopard delay is no big whoop – April 13, 2007
InformationWeek blows it again: reports second delay of Leopard this year due to Vista compatibility – April 13, 2007
Goldman Sachs, Merrill Lynch, Piper Jaffray: Use Apple’s Leopard delay as buying opportunity – April 13, 2007
Analysts unconcerned over Apple’s Mac OS X Leopard delay – April 13, 2007
Apple shares drop nearly 3%, dip below $90 on Mac OS X Leopard delay – April 12, 2007
Apple delays Mac OS X Leopard until October 2007, blames iPhone – April 12, 2007

159 Comments

  1. There is no bigger fan of Apple out there than I. Been running and buying Apples since the Apple // – bought the first Mac and have been buying them ever since. My business depends on the Mac. Without it we would crumble (windows is NOT an alternative for us – most people here would quit before they tried to use CS2 or 3 or any number of other programs on Windows).
    But – I am sorely disappointed in this news. I was, as a fan boy, planning on buying an iPhone, even with a switch from reliable Verizon (for me) to an unproven service. But Leopard was WAY more important to me. Sure I want it right, but I, too, think Apple may be stretching resources. Fingers are crossed. But I REALLY wanted to be running Leopard.

  2. Size of the company is not that important. I believe that Apple works smarter than a lot of companies. Jobs said as much himself not so long ago when commenting on the size of Apple’s R&D budget (which is much smaller than many other companies).

    Nothing is not holding Apple back from hiring more people, if they need to.

  3. Yeah, I don’t think this is “negative” press so much as “cautionary”.

    There are enough ignorant Apple Bashers to beat down. I think Wolverton’s piece is informative, and his tone is not hysterical, unlike some other very recent crazies.

  4. Vista was delayed from 2003 – 2007, is Microsoft over-extended?

    Oh, and part of the reason Vista was delayed was so that they could fix the <u>security</u> problems in XP.

    All those Apple employees – these days a lot of them work in stores, serving customers (aka real people). That’s a lot better than how Microsoft spends most of it’s salaries, paying lawyers to rip other companies off and defend customer lawsuits for defective software and over-pricing.

    One more thing, Apple announced the delay over two months in advance (13th April vs 21st June), when did Microsoft announce the final delay to Vista?

  5. My take is: Given that VISTA is not being received well, it gives Apple time to include features that otherwise they would have left out had they felt the need to compete with VISTA. Also, it might give them chance to release the OS. simultaneously with new hardware. I hope this is the case.

  6. “RTFM or at least poke around in the Apple TV Settings until you set it up correctly before you make baseless claims.”

    You can read all the manuals you want, you’re not going to make 640X480 look good on a 50″ screen.

    FWIW, As of February 2006, I have no more PCs in my house (I was a DOS user since version 2.1 and through all the versions of Windows). I have a G4 Digital Audio, an Intel Mini, and (3) G4 iBooks. Making notice of obvious problems is not being “negative”, it’s simply stating fact….

    You guys can WOOO YOOO all you want. Yeah, Vista is a “failure”, that’s why is currently has more users than Tiger does….

    Rah Rah Rah Fanboy nonsense only goes so far. If Apple wants to be real competition to Windows they need to license other manufactures to make their hardware so they can concentrate on OSX and their little telephones and iPods… (Regardless of what you fanboys say, Apple’s hardware is just pretty overpriced PC’s now that they are using Intel microprocessors)

    “Apple is a hardware company” doesn’t cut it anymore. They’re not large enough to supply a large market, and from the latest news, they don’t seem really interested in it either….

    Otherwise, our platform will go the way of the Amiga and other superior platforms that didn’t have enough support to be appreciated by the masses.

  7. Troy is just hacked off because he didn’t invest in Apple when it was $9 a share, and when it was $45, and again when it was $85 and again when it split, and now when it’s $90.

    If Troy were smart and not emotional, he would have been on the gravy train that is AAPL long ago, but instead he hold onto his Redmond glory days and says bitter.

    Pride causes such stupidity.

  8. “I seem to remember an article on MDN about when a company starts adding more (Programmers) to projects that the additions actually slow the process down. I think the topic was Vista.”

    A book about how adding manpower to a late software project only makes it later was written in 1975. It is called The Mythical Man-Month. It was written by someone who understood software engineering. Since M$ doesnt seem to understand any of the principles of good software design/engineering, it is no wonder they fell victim to it.

  9. There is no Leapord delay! Jobs promised it this Spring, but failed to mention which hemisphere. Just because a bunch of analysts assumed it was the northern hemisphere doesn’t make it true.

    Apple will deliver Leapord as promised, Spring 2007, sometime between Sept 21 and Dec 21 in the Southern hemisphere.

    Everything else is FUD.

  10. iPhone is a good and reasonable excuse for delaying Leopard, but I think it’s just a decoy. You just can “shift resources” between two very different products with two months to go and expect signficant efficiencies or time savings. It’s better to let the people who have been doing the work focus on getting it done, rather than have them train the new people. So that’s not the story… iphone will be completed in June. I don’t think that was ever in jeopardy.

    The real Leopard delay story is that Apple wants to add some significant new functionality to Leopard. It might be something that was previously cut but is back in. Or it might be an unannounced feature that would have to be cut, to meet the “spring” deadline. Or maybe Apple just need more testing/fixing time. Whatever it is, Leopard will be worth the extra wait.

    Why would Apple do this? Apple does not see Vista as a threat anymore. If Vista adoption was seen as hindering Mac OS X adoption (more than XP would have), Apple may have rushed Leopard out the door. Instead, the Vista fiasco may be helping Mac OS X adoption. Windows switchers don’t care if it’s Tiger or Leopard; they don’t want Vista. Therefore, Apple decided to delay Leopard until October, make it better and more solid, and let Tiger do what it’s been doing for a few extra months.

  11. @ShadowMac

    I did not forget….that is it is called the LeapoardisLateAppleTVwasLateiPhoneWillbeLateTooWeDrinkTooMuchKoolAid Dept.

    Until Leopard is ready for press…no product using it can be ready for press.

    Ah now ppl are thinking!

    Just my $0.02

  12. > Everybody, including MDN, seems to have forgotten that the iPhone runs a version of LEOPARD.

    So… It hasn’t been forgotten, but it is irrelevant. You can’t boot a Mac off an iPhone.

  13. I don’t understand some of the wining over the 10.5 delay: how can the delay of the release of 10.5 be CRITICAL to your business? If your computers are critical to your business, why put a new OS update on a production computer? Wait until a few patches have been released and even then, test it thoroughly as to not disrupt the existing workflow.

    iPhone is incredibly hyped so expections for a quality product are high. Therefore, the product must be PERFECT (no minor bugs). I agree with a previous post: Vista’s less of a threat so it’s ok to delay 10.5. 10.5 will come under incredible scruitny as well as it will be seen as Apple’s ‘reply’ to Vista so, it too, needs to be a very solid product at launch.

  14. > Until Leopard is ready for press…no product using it can be ready for press.

    Nonsense. The version of OS X in iPhone just has to run perfectly on one device, and support no third party peripherals or software. The released version of Mac OS X Leopard has to run perfectly all the Intel Macs and most of the PPC Macs, and support countless third party peripherals and software. See the difference…?

  15. You guys are hilarious. You find his penchant for anything negative regarding Apple tiring. Jeez, sound familiar!?

    Its been my experience that those who are quick to point the finger can not handle having it pointed back at them. Definitely a case of calling the kettle black because MDN is the king of negative review regarding anything Microsoft and Troy Wolverton is merely the reflection in MDN’s mirror.

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