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A Look Back at Apple's 2003

Samvit writes "The end of the year is upon us, so it's naturally time for those retrospectives to start coming in. Ars Technica has a fantastic look back at Apple in 2003. 2003 was one of the biggest years for Apple, arguably the biggest in a very long time. Still, Ars is typically fair, so the author lays down not only the good in 2003, but also the bad and the ugly. There's a bit of prognostication going on too--a little something for everyone."

29 of 404 comments (clear)

  1. Right Track by qw(name) · · Score: 2, Insightful

    Apple appears to be on the right track. Their problem is still expensive hardware but going to a Unix-based OS was insight indeed.

    If I had the money, I'd purchase a new G-5 dual cpu system.

    1. Re:Right Track by AKnightCowboy · · Score: 2, Insightful
      I have to admit, as a former apple hater, I spent an hour with a friend who has a new G5 and iPod. The G5 is slick, fast, has an OS I felt at home with in minutes, and just looks stunning. Price be damned, I'm buying one.

      I'm torn between wanting the speed of a G5 and the portability of a Powerbook G4. Both would probably end up costing about $2500-$3000 configured at the midrange with decent specs. Still, that's a far cry from the $700 I could pick up an Athlon64 system for.

    2. Re:Right Track by IM6100 · · Score: 1, Insightful

      Since Apple has spent literally decades driving the 'Oranges' out of their market segment (they even sued and ran out of business 'Orange Computer' who made an Apple II clone), I would say it's near impossible to make 'Apple to Orange' comparisons within the Mac market.

      But it's refreshing to know that I can build up my investment in software and know it'll run robustly on anywhere from a $300-3000 machine.

      Apple's product line doesn't scale the same way the PC Clone product line does, because they're pointedly a single-sourced supplier.

      --
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    3. Re:Right Track by iSwitched · · Score: 4, Insightful

      Bad for Linux?

      First, do you have proof that OS X has significantly less 'substance' than Linux? Or is this just an opinion. Let's assume for a moment that I'm not just feeding a troll here.

      Linux is a tool, OS X is a tool, some people prefer one, some another. If the number of people preferring OS X begins to outstrip those preferring Linux, then the Linux community has two choices:

      It could pull a microsoft, wring its hands, and decry Apple as anti-choice and un-american, or...

      It could stop bashing for just one second, examine what is being done that is good and innovative, evaluate why people are making the choices they are, and then compete, hopefully building a better Linux along the way.

      How on earth could this be bad for Linux?

      --
      "That naive cube! How long must I suffer this!" --Sheldon J. Plankton
  2. What about their bottom-line strategy? by GeckoFood · · Score: 5, Insightful

    As I read through the article, I saw lots of ooh's and aah's over the cool toys and services they are offering, as well as the integration to certain systems. The iTunes service was acknowledged as their biggest gainer.

    Ok, so they have all of this cool technology and neat services. So, now what? How are they working to increase market share and compete with the Wintel market? It's one thing to shore up the market you have, but when that market is relatively small, that leaves one to wonder how to expand. What do they intend to do about a limited market share? The article does not say that. iTunes might be making money for them now, but how will they keep it on top with new competitors emerging?

    --
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    1. Re:What about their bottom-line strategy? by Anonymous Coward · · Score: 1, Insightful

      Considering iTunes itself is free, then all they need to do is be higher quality than their competitors. And that is something Apple has a lot of experience doing.

    2. Re:What about their bottom-line strategy? by GoofyBoy · · Score: 4, Insightful

      There are two ways to go about doing business.

      You can be the big, for-the-masses, beat-them-with-price company. Examples of these are Wal-Mart and McDonalds.

      You can be the small, speciality, beat-them-with-loyalty/quality company. Examples of these are Gucci and Apple.

      As long as they steadly increase profit each year, why should Apple change their ways?

      --
      The surprise isn't how often we make bad choices; the surprise is how seldom they defeat us.
    3. Re:What about their bottom-line strategy? by Frymaster · · Score: 5, Insightful
      How are they working to increase market share

      and market share is important because why?

      the goal of apple is to be a successful, profitable company - not to "beat" windows. bmw and mercedes-benz are successful car companies. and you don't hear the shareholders whining that they're not beating ford on the market shart front...

    4. Re:What about their bottom-line strategy? by tbone1 · · Score: 3, Insightful
      This is a legitimate question, and the honest answer is "I don't know". I don't think anyone outside of Apple knows. However, they have been positioning themselves for a big strike at market share; certainly they are better poised for that now than, say, five years ago. In fact, one never know about this. When the iPod was introduced, I yawned like most people. Now I own one, wish I'd gotten a bigger one, and it is proving to be a "killer app" on the hardware side, when coupled with iTunes. That combination allowed them to create and dominate a market, pay for downloadable music. (Admittedly, it's still early for that market, but still.) That may be levereged for other things; who knows?

      I will say this, from what I've seen Apple has the infrastructure and processes in place to make that strike, which I didn't see them having in years past.

      --

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    5. Re:What about their bottom-line strategy? by Anonymous Coward · · Score: 1, Insightful

      Apple had lost a lot of its luster going back to pre-2001. I would have never dreamed of using an Apple before OS X.

      I think you miss the point that Apple is getting a lot of publicity and that in the next 5 years... Most computers being used now will be replaced. All Apple has to do is to be a "choice" when people buy computers. Before 2001 they were barely a thought. Now... I see everyone giving Apple a chance. Lets not forget about the moves that Apple has made back into the Educational area. Thank god... they have displaced Dell as the big provider.

    6. Re:What about their bottom-line strategy? by droleary · · Score: 3, Insightful

      The iTunes service was acknowledged as their biggest gainer.

      Kinda hard for that not to be the case: they sold an infinitely larger percentage of music this year compared to last. :-)

      How are they working to increase market share and compete with the Wintel market?

      What makes you think they have to? It's like you're saying that BMW needs to compete with Toyota's numbers for "road share". Apple makes a profit and does so while innovating ahead of the curve. With that business plan, they'll be around for a long, long time.

      It's one thing to shore up the market you have, but when that market is relatively small, that leaves one to wonder how to expand. What do they intend to do about a limited market share?

      Now you're just being moronic. The reality is the exact opposite of what you suggest. Apple is a success with 5% of the market; it has 95% of its potential market untapped. Microsoft has 90% of the market; it has just 10% of a potential market left. If you need to worry about how any company can capture a larger marketshare, worry about MS.

    7. Re:What about their bottom-line strategy? by sbma44 · · Score: 4, Insightful
      marketshare *is* essential. It puts you in control of your own destiny. You don't have to have >50%, just a competitive share.

      Interoperability is essential for computing. It's like language: english may not be the most efficient thing we could use on slashdot, but interoperability is the deciding factor.

      Given that, if you only have 5 or 10% of the market, you will always be at the big guy's anticompetitive whim as they decide on some new proprietary standard that locks you out. Then you suffer losses for 12 months until the courts tell them to stop.

      Apple doesn't have to be bigger than MS, just big enough that MS has to ensure they're products work with apple, the way apple has to be sure their products work with MS.

    8. Re:What about their bottom-line strategy? by filth+grinder · · Score: 2, Insightful

      Maybe it is my fault for reading the article but:

      The iTunes service was acknowledged as their biggest gainer.

      Is clearly false. From the article:

      In Apple's annual analyst conference call, Jobs admitted that iTMS was a loss leader for them. Apple's goal in getting into the music business is to sell more iPods.

      Apple only offers the iTMS to sell iPods, the number 1 selling mp3 player. Apple takes a loss on the service to make up the money on the iPods. Also the iPod is Apple's venture into the consumer electronics market (different from the computer market). Apple already said they wont be doing flat screen TVs or cell phones, but other consumer electronics are on the way.

      So, keep in mind, Apple is losing money with the iTMS, but making it up on the iPod. Now, if Apple is losing money on iTMS, I wonder how Walmart and Napster are fairing.

    9. Re:What about their bottom-line strategy? by Bytesmiths · · Score: 3, Insightful
      How are they working to increase market share and compete with the Wintel market? ... What do they intend to do about a limited market share?

      Ah, yes. The old "market share" argument.

      That's why Porche, Leica, Gucci, Hummer, Rolex, et. al. are all going out of business. That's why rich people buy posters at Wall-Mart instead of original art or even (gasp!) pseudo-originals like Thomas Kinkaid reproductions. That's why there are no houses on the market over about $250,000 or so. That's why fine dining has gone out of style, and the hoi-poli are all eating at McDonalds.

      But it gets even better -- a Hummer costs at least 4x the price of a Kia, yet they will both get you to work in the same amount of time. A Rolex costs thousands of times more than a watch at the Dollar Store, but they both tell the same time.

      But the new G5 is within a few percent of the price of an equivalent Dell, Compaq, Gateway, etc.! So YOU can be part of the hoi-poli on a budget!

      Chasing "market share" is not an innovator's game. (Look what it did to Apple under Sculley.) The masses (Geoffry Moore's "mice") will always choose a product for reasons other than technical innovation. It's the "gazelles" that drive innovation, and they are always a minority, almost by definition!

      So leave the market share game to those whose specialty is super-efficient manufacturing and marketing. And if you want the absolutely cheapest computer that everyone else has, it's a great time to own a Wintel machine! :-)

  3. G5! by BWJones · · Score: 4, Insightful

    I must say the biggest deal for Apple this year has been the advent of the G5 with significant help from IBM. Throughout the G4's life, I had been a supporter of Apple and in particular OS X because of the efficiencies that the OS provides. However, in raw number crunching power, the G4 simply did not scale in performance leaving me to do much of my hard core scientific computing on Intel or AMD hardware. However, now we have G5's, there is simply no comparison. I can now have the most efficient OS and the fastest CPU available in one platform. Apple needed the G5 and that I would say is the single biggest product Apple has come out with this year.

    --
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  4. iPhoto performance? by Otter · · Score: 4, Insightful
    The ugly: iPhoto performance with large photo libraries

    That's their gripe on the software front? I'd say _THE_ single biggest screwup for 2003 was destructive software upgrades. The number one selling point for Apple is that things just work and you don't need to worry about them. Whatever they've been doing for QA on their upgrades, it needs to be massively revamped.

  5. Re:Very interesting by JudgeFurious · · Score: 2, Insightful

    I don't think so.

    All of that may be true but since the total number of people who even know that these products (or company's for that matter) even exist can be numbered in the dozens it's safe to say that Apple doesn't real spend a lot of time worrying about their new "real competition".

    --
    Appended to the end of comments you post. 120 chars.
  6. I predict by geekoid · · Score: 2, Insightful

    a lot of bussiness advice from unemployeed hacks.
    example:
    1) They've got to go after wintel!
    2) They should only focus on software!
    3) Sure there good now, but what about the FUUTUUURE!

    blah blah blah.

    Don't give business advice to a company that has 8% of the computer market.

    I'm sick of this, and I don't even use a MAC.

    --
    The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
  7. Re:Applause by daviddennis · · Score: 2, Insightful

    I wouldn't mind owning this "dying" company.

    It's profitable, and software developers continue to write software for it.

    Therefore, it's not dying.

    Sorry.

    D

  8. Re:apple should get out of the PC business by presearch · · Score: 4, Insightful

    Although this has been beaten to death, let me take a quick whack once again.

    x86 OS X makes little sense. PC people just want cheap compatibility with other
    cheap Windows compatible people and workplaces.

    Apple would sell less boxes if all they could compete on was design.
    They would eat up any profit by attempting compatibility with the umpteen
    billion PCI cards out there. Any profit that would be left would be eaten up by
    dummies asking why the Windows game they bought doesn't work.

    Slashdot would be full of comments on how you should just run Windows
    instead of the emulation layer.

    Current users of Mac stuff would have no end of fat binary grief.
    All Mac developers would have to ship fat binaries and double
    the support load in addition to the size of the distribution.

    Things are fine they way they are for now. Let x86 die the quiet death it deserves.
    And Windows with it.

  9. Its the Apps... by C.+Alan · · Score: 2, Insightful
    On the flipside, the Mac already based on proven UNIX technology and security. The GUI is fully hardware accelerated. The core CPU line looks to be in a much better position for moving forward in performance (Intel has been very vocal about the power issues they're running into), and PowerPC's run cooler, which is getting to be an important issue

    My impression is that Apple hardware is more stable becauset they have maintained more control over the hardware. My first computer was a Mac 512, way back in the 80's. That computer never crashed.

    However, they are still lacking one thing, Applications. I am a Civl Engineer by trade, and just about every piece of software I use is made for windows. It is the old chicken and the egg situation, If they sold more Apples, you will get more applications, you won't sell more Apples until you have more application.

  10. Re:apple should get out of the PC business by tgd · · Score: 3, Insightful

    This is real simple, for the 10,000th time its been stated on here.

    Apple writes an OS to put on its hardware. It makes its money on the hardware. There's no reason for it to run its OS on anything else, because its not in business to sell software.

    Its identical to Apple selling music to get people to buy iPods. Apple isn't in business to sell music, they're business to sell hardware.

    They always have, and very likely they always will.

  11. You know you've had a good year when... by phillymjs · · Score: 2, Insightful

    ...your competition is selling your products.

    Now, Dell may not be selling iPods anymore since they've debuted their metoo!Pod-- but Dell is, astonishingly, selling a variety of Macs to the NYC school system. Talk about a bunch of whores who will do anything for a buck, huh? :-)

    ~Philly

  12. Re:An alternative to Longhorn...today by the_rev_matt · · Score: 3, Insightful

    I've been hearing the "PCs are cheaper" argument since the early 90's at least. One problem: It's never been true. Sure, you can buy a PC for less than you can buy a Mac. But you cannot buy a PC of *comparable quality* for significantly less.

    After college I sold computers for a few months at Good Guys. The was when the pentium processor was first introduced. A decent IBM (actual IBM, not a cheap crappy clone) was about $1400. A comparable Performa was about $1600. But the Performa came with a nice monitor, which was worth about $200. Gee, same price after all. You could pick up a Packard Bell for 1100, but they were pure garbage and got returned as defective more often than not.

    These days you can buy a low-end computer for as little as $200 from Wal-Mart. By this logic, no one should ever buy a Dell or Gateway, because they cost more than the Wal-Mart PC. It's cheaper for a reason. Try it yourself. Look at the specs for an iMac or eMac and then spec out a Dell or Gateway of comparable power and quality parts. I doubt you'll find a difference of more than a few tens of dollars.

    --
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  13. Re:It's definitely the price by Nexum · · Score: 2, Insightful

    No No No.

    Apple Machines are not more expensive

    The above is a link to a recent set of comparisons. Yes, you can always get a cheaper PC than a Mac, but if you spec the machines to be as equal as possible the Mac is cheaper. And that is withouttaking into account the unquantifiable benefits of OS X, no viruses, very few security problems etc. etc. etc. etc.

    Let is stop here, Macs are not more expensive, but they are generally higher specced than most of the bare bones crap you see advertised for so little.

    --

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  14. Re:Applause by afantee · · Score: 3, Insightful

    You do realize that you are comparing Apple against the whole computer industry, and there is no single box maker in the Wintel world that is remotely as innovative as Apple.

    The original iMac is the first legacy-free PC with built-in USB, Firewire and wireless, and its industry design has inspired not only computer makers but also designers of a wide range of products from mobile phones to printers. AFAIK, no consumer PC in 1998 could match the iMac in features, and it actually took the industry 2 to 3 years to catch up with Apple.

    Dell is a cheap copycat with zero software and insignificant hardware engineering compared to Apple. Apple is 40x smaller than MS, but its software portfolio is comparable and often better than MS products.

  15. Re:It's definitely the price by alienw · · Score: 3, Insightful

    Sure, if you're willing to pay $5000 for a machine, maybe Apple is pretty competitive there. Most people out there buy something in the $1500 neighborhood (for a desktop) and there PCs clearly beat any of Apple's offerings.

    Also, you have to look at how contrived the guy's examples are. He compares the desktop G5 to a server-class Intel Xeon. Obviously, the two are extremely different. The Xeon is an order of magnitude more expensive than a desktop processor. Comparing the G5 to an Athlon 64 or an Opteron would be more appropriate. Then, he goes on to compare a low-end Radeon 9600 to an Nvidia Quadro, a professional card! Then he goes on to bitch about how the soundcard sucks, and so on, when he could easily get a different one. It's more a comparison of Apple versus Dell. Which is not fair; the two serve completely different market segments.

  16. Re:apple should get out of the PC business by soft_guy · · Score: 2, Insightful

    What doesn't it do well? Produce PC hardware that is a good value for the money.

    I call troll. Apple's hardware is a good value for the money and it pretty much always has been at least since I've been using Macintosh (since 1993 - prior to that I was using Atari).

    The advice you are giving Apple is to commit suicide.

    Don't believe me? It right out of the BeOS playbook. Microsoft can effectively kill any non-free OS competition at will by threatening the OEMs.

    If Apple stopped designing and building hardware, or tried changing to an x86 chip at this point, that might kill them and would certainly be a very bad move. You can't go from being a multi-Billion dollar hardware company to being a multi-million dollar sofware company without massive losses of money and credibility. Ask IBM. Ask Be. Ask some Amiga users.

    And the fact is, Apple doesn't need to do this. They only hope for Apple - long term - is to keep doing what they are doing. Keep quality up. Keep customers happy. Provide a user experience that is worth paying for. Capture the high end. Take sales away from companies like Silicon Graphics and Sun.

    --
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  17. Re: on shareware by King_TJ · · Score: 2, Insightful

    Well, actually, I think often times, shareware programs eventually become public-domain freeware, after the author feels the code is no longer generating him/her enough profit to make it worthwhile to maintain it.

    Not everybody wants to expend the effort required to write a piece of software and not even take a shot and seeing if "it's worth paying for". Shareware makes a decent "test bed" to find out if what you wrote is worth money to people or not.