Apple Creates new iPod and Macintosh Divisions

KH2002 writes "According to a New York Times/Reuters report, Apple is creating a separate division for the iPod. Apple Senior VP Hardware Engineering, Jon Rubenstein, will head the iPod division, and Executive VP of Worldwide Sales and Operations Tim Cook will lead the Mac division. The report quotes a spokesman as saying, 'This organizational refinement will focus our talent and resources even more precisely on our industry-leading Macintosh computers and the wildly successful iPod.'"

Comments

Better focus or Mac to be axed?

[MacGod]

It seems of late that Apple has been focusing more and more on the music side of their business (ITMS, iPod etc).

Therefore, I can see this decision going one of two ways:

1. Each division focuses more on their individual strengths. Each half becomes better suited to its product, and the company as a whole grows and becomes stronger.
2. Apple decreases the emphasis on its Computer division to focus more and more effort on the Music side. The Mac as we know it disappears.

I certainly hope that it's #1, and I have a hunch that it is, but it will be very interesting to see what developers over the next few years.

Re:Better focus or Mac to be axed?

[Pope]

Sales of PowerMacs have tapered off in anticipation of newer/faster models coming "real soon now." IBM has had troubles getting the faster chips out the door, so the G5 line remains stagnant, certainly not a good thing for Apple's image OR bottom-line.

I know I've been holding off for a Rev B G5 mainly because I want a dual chip machine, and though the Dual 1.8 is the best price/perfomance ratio at the moment, it's still going on 6 or 7 months old. I have no urgent, pressing need for a G5, so holding off for the next speedbump makes sense to me.

Creating a separate iPod/music division away from the Mac line is a fantastic idea, and will allow more concentration on their respecetive products.

Re:Better focus or Mac to be axed?

[Llywelyn]

Better than a hunch.

Apple has filed for trademarks over three more cat names (Lynx, Cougar, and Leopard), which good through 2007 at their current OS release rate, *and* they have said that they are going to slow down their operating system release rate. I believe that their Mac hardware division is also profitable on most lines independent of their iPods.

Taking these two things into account I find it *highly* unlikely that there is *any* plan to kill off the Mac.

Re:Better focus or Mac to be axed?

[dhovis]

There was one business mag that suggested that Apple should spin off the iPod and iTMS into a separate company and issue an IPO for it. It would net Apple lots of cash, and it could isolate Apple from the eventual decline of the iPod.

This does make some sense, as it is hard to envision Apple keeping the iPod as a high profit margin device for more than 5 years or so. I don't know about you, but I kind of expect the functionality of my iPod, my Palm, and my cell phone to converge by then. I suspect that Apple hopes that by the time that happens, they will have a large share of the legal downloads market, and that sales for iTMS will be large enough to produce a good profit, even with the razor thin margins they have now.

Re:Better focus or Mac to be axed?

[Trillan]

I don't know about you, but I kind of expect the functionality of my iPod, my Palm, and my cell phone to converge by then.

Convergence is over-rated. Each of these devices serves a different purpose and requires a different form factor. Look at your current gadgets, they're probably more or less ideal in terms of form factor. How comfortable would it be to write on your cell phone's screen? How would you like to hold your Palm up to your ear for an extended period of time? And once you have a single device, how do you turn up your music player a bit while talking on the phone, and then quickly jot down a number?

But integration between the devices would certainly be nice. A cell phone sending a signal to turn down an iPod might be nice. A Palm that can shunt little-used programs off to an iPod would be handy.

Re:Better focus or Mac to be axed?

[IntlHarvester]

Do you really think Apple could sustain itself on the (relatively small) profit margins of the iPod alone?

iPods currently have a much larger profit margin than Macintoshes (which are barely above break-even).

Do you think Apple could sustain itself making only unprofitible Macs forever? (As they aren't really doing anything to increase market share.)

The long-term digital music/movies business is not a "one trick pony" -- in the future it's bound to be integrated into every cell phone, PDA, car stereo, home stereo, cable box, and television set. I guess the development of an 'iPod' division indicates that Apple is looking at the big picture and not just the trick pony.

Re:Better focus or Mac to be axed?

[pauljlucas]

The long-term digital music/movies business is not a "one trick pony" -- in the future it's bound to be integrated into every cell phone, PDA, car stereo, home stereo, cable box, and television set.

The thing that companies haven't figured out yet is that nobody wants to watch movies on portable devices with tiny screens. It's an application looking for a market.

I guess the development of an 'iPod' division indicates that Apple is looking at the big picture and not just the trick pony.

If they really wanted to do that, they would have created a "consumer electronics" division.

Re:Maybe now we'll get ogg support?

[Llywelyn]

Politics such as the irrelevancy of Ogg to 99% of the people who are in the iPod's target market?

Re:Maybe now we'll get ogg support?

[Llywelyn]

There are several very good reasons not to.

First, the iPod only supports a limited number of formats, and iTunes should only natively support the same formats as the iPod. This is for a combination of ease of use, user perception, and technical reasons.

Second, there is no reason for them to put any effort into supporting it. They have AAC, which for the bitrates most people use is equivalent to or superior to Ogg. The consumer doesn't care how "free" Ogg is when Apple is willing to cover things with AAC and mp3.

They have the Apple Lossless instead of FLAC, and they support the most common format--mp3. Why on earth would they want to confuse things for newbies and people like my mother by adding another format and thus another choice?