Apple Abandons Development of Wireless Routers, To Focus On Products That Return More Profit (bloomberg.com)

Apple has disbanded its division that develops wireless routers in a move that further sharpens the company's focus on consumer products that generate the bulk of its revenue, Bloomberg reports. From the article:Apple began shutting down the wireless router team over the past year, dispersing engineers to other product development groups, including the one handling the Apple TV. Apple hasn't refreshed its routers since 2013 following years of frequent updates to match new standards from the wireless industry. The decision to disband the team indicates the company isn't currently pushing forward with new versions of its routers. Routers are access points that connect laptops, iPhones and other devices to the web without a cable. Apple currently sells three wireless routers, the AirPort Express, AirPort Extreme, and AirPort Time capsule. The Time capsule doubles as a backup storage hard drive for Mac computers.

Comments

Apple's made this kind of decision before

[laird]

Apple's killed off peripheral businesses in order to strengthen their core businesses before.

For example, Apple used to have a $1B/year printer business, which was highly profitable. They killed it, because doing so for them to get all the major printer companies to ship their standard printers with support for both PC and Mac, which ultimately grew Mac sales.

They used to sell a digital camera, the first consumer digital camera that was easy to use with a computer. When the digital camera industry developed some decent standards and became easy for consumers to use, Apple killed their digital camera, and sold Canon, Nikon, etc.

Same for AppleTalk -> EtherNet, ADB -> USB.

Apple introduced their routers when routers were extremely consumer hostile with horrible software, and Apple's routers are well made and very easy to set up and use, making it easy for Mac owners to get online. Now, routers have gotten a lot better, to the point where Apple doesn't need to invest R&D in making them usable.