Apple's Device Model Beats the PC Way

Carl Bialik from WSJ writes "Walt Mossberg argues in the Wall Street Journal that Apple's model for PCs and devices is beating Microsoft's. In early battles for dominance of the PC market, Microsoft's component-based platform crushed Apple's end-to-end model, he says. But in today's post-PC era, where the focus is on music players, game consoles and cellphones, the end-to-end model is the early winner. From the column: 'Even the Mac isn't as closed as its critics charge. It's still designed to work with Apple's own operating system and software. But it can handle all the common files Windows uses, can network with Windows machines, and can use all of the common Windows printers, scanners, keyboards and mice. The Mac gives you the same access to the Internet as Windows. Heck, the newest Macs can even run Windows itself.'"

Comments

History Repeats Itself

[TripMaster Monkey]

From TFA:

The jury is still out on whether the end-to-end model will prevail in the long term. Many at Microsoft, and some outside analysts as well, believe the new devices will eventually succumb to the component model, and that Apple's success with the iPod will fade, just as its early dominance of the PC market did.

I'd have to disagree with the above, based on the following observation:

I believe we're seeing an evolution of PCs and electronic devices that closely parallels the evolution of the electric motor. When electric motors were first available to the public, it was in a general-purpose, component model. You could buy an electric motor, and it would normally come with different belts or chains allowing you to attach them to a wide variety of other devices. Nowadays, electric motors are much more within the end-to-end model, in which they are made for a specific task and embedded in the end product.

Computing devices seem to be following that same general curve...becoming more specialized, embedded, and specific-to-task (one example: console games vs. gaming PCs). Given this inexorable movement away from the general-purpose to the application-specific, I'd have to guess that the end-to-end model will be excercising progressively more dominance in the market as time passes.

Ultimately, Apple only needs a solid minority...

[Stick_Fig]

...to come out a winner long-term. The PC market is huge, and as long as Apple keeps its niche comparable to the market share that other hardware companies have (i.e. its market share should be compared with HP and Dell, not Microsoft), then they've succeeded in the market.

Let's stop making this a Apple v. Microsoft fight, because it hasn't realistically been one for a while.

Re:Mossberg is "high class" infotainment.

[syphax]

I don't think that's fair. Dvorak and Cringely have a business model that's based on coming up with crazy shit.

Mossberg is a technologist for the common (business) man. He writes about technology from the perspective of a normal person (what we might call 'user').

There is nothing overly provacative over this particular theory, except that it is probably wrong. In new fields, integrated, proprietary technology usually gets the headstart because it can innovate faster (not having to worry about standards and such). But eventually, as the new field matures, innovation slows and the advantages of standardization and commoditization catch up. Here is an excellent talk by Clayton Christensen at the 2004 Open Source Business Conference. It is really an excellent talk. Christensen may not be 100% right, but he is at least mostly right, and has some great insights and stories.

Apple is kicking butt right now because they developed an awesome family of music players that while proprietary, are not overly so, decent software for managing said devices (iTunes is great at some things, sucky at others, but overall is pretty decent), and the first sane online music store (and kudos to them for their successful negotiations with the record labels). It's excellence of execution more than a winning business model. Plus, the industry's perceived need for some sort of DRM, which will let Apple sustain it's closed system for awhile.

If we ever get past the DRM BS (hah!), we'd at some point be able to buy music from store A and play it on player B. At that point, Apple will lose margin in both markets (stores and players) due to increased competition (right now they are exploiting the oft-talked about but rarely observed concept of 'synergy').