Apple’s handheld computing revolution (Microsoft, others completely unprepared to compete)

“Apple will have a product line of pocket-size, always-with-you computers, just as hundreds of WiFi initiatives begin to take over paid cellular. This will put Apple in a uniquely strong position to drive a revolution in handheld computing,” Andrew Melcher writes for SeekingAlpha.

“Spreading WiFi coverage is creating an opening for handheld-centric computing… the convenience of always having internet and free VOIP access in your pocket will become the only decision variable. At that point, the device that can’t fit in your pocket becomes redundant and the world switches to handhelds,” Melcher writes.

“Microsoft seems completely unprepared to push its dominance with clunky computers into this new handheld realm. It will certainly need new interfaces like the iPhone’s patented keyboard and finger driven actuation. But more critically, Microsoft will need to load bloated Windows Vista (not the CE version) on an flash memory handheld. The smaller Apple OS has a critical advantage here. It will be at least another year before flash memory chips are big enough to power a standard Windows bloatware device. It seems that Windows will be stuck without next year’s absolutely-must-have functionality – platform ubiquity,” Melcher writes.

“Once a critical mass of people leaves Windows, the only source of power Microsoft ever really had (its user network) will evaporate,” Melcher writes. “At that point, Apple handhelds stop being a million user curiosity and starts looking like a $600/unit global communication standard/network that will eventually replace nearly a billion desktop computers.”

“The likes of Nokia will simply not be able to create functions valuable enough to compete with $600 (or $3,000) iPhones that are also dockable Apple computers. The cell phone manufacturers as well seem wholly unprepared to compete with Apple’s well established desktop software universe,” Melcher writes. “This change of platform is exactly what Steve Jobs has been waiting two decades for…”

Full article – recommended – here.

[Thanks to MacDailyNews Readers “Nathan” and “Linux Guy And Mac Prodigal Son” for the heads up.]

44 Comments

  1. Is this the “transition” the CFO mentioned? More computer for your pocket? To compete with a $600 laptop? Sorry, must have something on my glasses – can’t see it. Apple’s pocketable line(s?) are locked down right now. Yes, they ARE “real computers”, but severely limited to doing whatever Apple allows them to do. This is both Good, and BAD. And I don’t see them replacing laptops until much of that Bad goes away.

    DLMeyer – the Voice of G.L.Horton’s Stage Page Pod Cast – currently discussing “Mumbet”

  2. I have always looked to Apple to bring true palm computing to the – well, palm. I for one am very excited about what small computing devices Apple is going to come out with over the next 12 months, along with its new Mac line up.

  3. Open your mind Meyer, take the blinkers off.

    Don’t you see that the iPhone is only the very beginning of all this. Apple will be producing swathes of new technologies in many varying hardware designs based on OSX and multi-touch.

  4. Apple still has one problem – AT&T. Bad, very bad decision. Great product, bad connectivity service. How does a world class company known for world class products and customer service, select AT&T as their exclusive network partner. Flip side of the coin, all wireless providers suck in their own unique way.

  5. I think back to the late 90’s and early 2000’s. I couldn’t dream that we would be seeing the headlines we’re seeing now.
    It used to be so stressful dealing with people who knew nothing of mac’s. I finally gave up, at least somewhat, trying to evangelize the platform and figured I couldn’t save the world. Now, things are changing, and quickly. It’s nice, but just a little hard to get a grip on.

  6. AT&T is a ‘so what’ in all this. It’s like saying MacBooks should have the on/off button on the left side not the right side. What differnece would it really really make to anything. Not going to affect European sales is it?

    Get over it and make more use of the wifi capability.

  7. The future is exciting…..I love “beep boopin'” on the Interweb, so being able to do it anywhere would be so awesome.

    And DLMeyer:

    Don’t think for a second that the iPhone is all that Apple has….I’m sure Apple’s future product line will NOT revolve around AT&T.

  8. Micro$oft is on the right track. After-all they came out with a table top version of a computer. Now they can begin miniaturization. In ten years it will go from banquet size to end table size (and that’s just the OS).

    MW: start-the war is over and M$ lost!

  9. We don’t know all the details of the deal Apple signed with AT&T…and it’s entirely possible that a NEW device, more palmtop (dare I say Newton like) will have 3G connectivity but NO phone in it. I don’t own an iphone but I’ve handled one and when I read people are typing at “15 words a minute” and gloating… but can’t edit Word documents or handle conventional software tasks..
    Would you buy a Mac Palmtop for $899?

  10. what is all the AT&T talk? what does it have to do with future palmtop computing?

    if you increase the iPhones thickness and give it more storage and add more apps, it becomes a palmtop.

    it also stops being an iPhone. it is a whole new device, part iPhone, part iBook, part iPod. AT&T has nothing to do with it.

    “Spreading WiFi coverage is creating an opening for handheld-centric computing”

    where does that say phone, AT&T or cellular? no where!

  11. If the iPhone is an example of what we can expect from this “…600/unit global communication standard/network that will eventually replace nearly a billion desktop computers…” give me a freaking break.

    Pass the pipe. I want to smoke what you people are smoking.

    Seriously though, it’s a compelling view, but one that’s a long way off and if you think MS and NOKIA etc. etc. is just going to sit back and wait for Apple to do this, well smoke some more.

  12. I remember some comments made by Steve Jobs, at the All Things D Conference with Bill Gates sitting next to him, regarding “post PC Devices” and that this is where we are headed. Makes sense as these products, such as the iPhone, will be an extension of our desktop/laptop computers and to keep us connected.

  13. “… and Mr Gates still believes the tablet is the future of personal computing..”

    actually, i believe they have dropped a letter (ch like they drop windows features. they are now betting on the table. ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />

  14. The really fascinating thing about the iPhone is that EVERYONE I told not to buy one, bought one anyway. Some even bought more than one.

    Every single one of those people is, as I predicted, extremely frustrated and unhappy with the device. They’re sitting in a corner as those people go back to their Blackberrys and Windows Mobile devices due to how gimped the iPhone is.

    I’m very worried that the other shoe is going to drop in the not too distant future on the iPhone.

    Look, The Emperor Has No Phone.

  15. @theloniousMac
    “Every single one of those people is…extremely frustrated and unhappy with the device.”

    I’ve had an iPhone for about three weeks now and on the whole, there is NO way I would give up the device. For me its high level of “on-the-go” internet functionality makes it an increasingly useful, well worth the money device.

    Don’t get me wrong, I have a long list of complaints (no global search, no copy/paste, etc.), and I have to admit that if the iPhone remains with its present functionality I will be dissappointed in the device.

    That said, there is NOTHING wrong with the iPhone that can’t be fixed through a software update – and I have to have faith that Apple is working hard to remedy the situation.

  16. Ah…the Microsoft table. It’ll come with wheels: from stamped steel and retreads for the Student Version to exotic alloy with run-flat radials for the Super Extra Premium Really Pro Platinum Version.

    Not to mention handles so you can wheel it around the street like a cart, and bask in the Zune holders coming to see and squirt all over it.

  17. The article may sound like the rantings of a stoner… but Apple is onto something BIG, albeit in small packages.

    We’ve been waiting for Apple’s Home on iPod feature for several years… it’s where you can load your Mac OS X Home folder on an iPod, plug into ANY compatible Mac and seamlessly work in your native/Home environment.

    With the upcoming increase in Flash storage devices, like the 64GB flash drives that have been recently announced, it’s looking closer and closer. An enhanced iPhone with a large capacity flash drive, could realistically allow you to carry your Home folder in your pocket.

    This is a big deal because, while it doesn’t end the dependence on desktop or laptop Macs, it frees you up to go between A & B without carrying 10 to 15 pounds of laptop and supporting gear.

  18. This is all at one end of the spectrum.

    What about Apple TV? Right now it seems that Microsoft has the upper hand with the XBox 360 as far as movie rentals and the Disney deal. But I think Apple is laboriously dealing behind the curtain on procuring a better deal for movie rentals. This could be also huge, since at the end it could also tie in to the handheld computing environment discussed in the article.

    If Apple keeps on putting media rich devices in consumers hands, movie studios will not have any alternative then to give in to Apple’s proposition.

  19. On behalf of Zune Tang:

    Give me a break. Once Microsoft updates the Zune’s software (like everyone’s been talking about since before the Zune came out), and once they ship the zPhone — the iPod and iPhone will look like the cheap toys they really are.

  20. pr I read people are typing at “15 words a minute” and gloating…

    I read the same article too. I think the author was making the comment tongue in cheek meaning technically he has improved since he first got the iPhone but his typing skills are still not very good with the iPhone as of yet.

    Peace.

  21. The only thing missing in Seeking Alpha’s narrative is the Star Wars scrolling effect.

    The dark force may be unprepared for the Jedi offensive. But only the true masters know for sure.

  22. ..just some perspective ..when Mr. Steve Ballmer spoke recently to the multitudes he spoke not through the internet ..not through radio frequencies but from the clouds. His words are priceless ..his thoughts are powerful constructions of light and providence …rest assured that no device from Apple has any chance of success because as Mr Steve Ballmer said ..”it doesn’t even have a keypad.” If that’s not enough for you then look up into the sky ..listen for his words ..understand.

  23. @ioniousmac
    “If the iPhone is an example of what we can expect from this “…600/unit global communication standard/network that will eventually replace nearly a billion desktop computers…” give me a freaking break.

    Pass the pipe. I want to smoke what you people are smoking.

    Seriously though, it’s a compelling view, but one that’s a long way off and if you think MS and NOKIA etc. etc. is just going to sit back and wait for Apple to do this, well smoke some more.”

    And that is just what people said before the iPod and the iPhone. “Could not be done, Never happen in our lifetime. etc”

    You just have to ” Think Differently”, open your mind to different possibilities. Just go back and look at the iPhone guesses that people made and see how different it really looks.

    PS. NEED an iPhone user. — Does the iPhone open and edit those online document applications that it is posting?? Can you open, edit, save, etc word and spreadsheet documents over the web using your iPhone???

    en

  24. “iPhones that are also dockable Apple computers”

    And what do they dock TO? Er – actual Apple computers.

    I’ve said this a million times, but I really don’t think Apple’s vision of the iPhone is to have it replace full-fledged computers, despite the fact that it runs OS X. The iPhone is a satellite device to the digital hub, albeit a very important one. It’s a PDA in every sense of “Assistant”

    All the people who want to make the iPhone into a mini tablet Mac are mystifying – they are almost as crazy as the folks I know who want to replace their office PC with their Blackberry (which in reality just means they spend all their time pawning off their work via the “forward” command onto people who still use real computers)

  25. I think Apple wants to sell you an iPhone AND a Mac. That future iPhone may become a more seamless extension of a Mac laptop or desktop, but it is doubtful that the iPhone will replace a full-function computer for most users. Not anytime soon. Perhaps in fifty years when engineers devise an iPhone with a direct mind interface, maybe then, laptops and desktop computers will be replaced.

  26. “I think Apple wants to sell you an iPhone and a Mac.”

    True, but that is only until most people find that they can do everything they want on the Web, including storing of documents and movies and music. Then Apple wants to sell you an iPhone, an Apple TV, and a .Mac-like “Mobile Me” Web services subscription package (unless Google offers it to you for less, like free). Will that be 2 years from now, 5 years from now, or 10 years from now – who knows – but the trend is in that direction.

    Yes, users who need mega-power or large displays will still need the Mac. But, over time, that will be a smaller and smaller segment of the market.

  27. I think what the critics lack is:
    1. a perspective, and
    2. a vision.

    What I mean by a “perspective” is that trolls like “thelonious mac” aren’t comparing the iPhone experience they criticize to the alternatives. I mean common really, most people who use a Blackberry don’t have a clue how to use most of their functions, even the IT HelpDesk. Their just waaaaay tooooo haaaard. EVERYONE knows that!

    2. What I mean by a vision, is to simply understand that in a few years, laptops can be the size of the iphone. I have always connected my laptops up to a keyboard and screen wherever I go. How much more portable is something the size of the iPhone? Imagine, not too difficult at all, having OSX on an iPhone sized computer and connecting via bluetooth to a LCD, laptop and mouse. EVERYONE will want one the minute this stuff comes out, and WHO is leading gthe pack?

    Game over folks.

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