The amount is high for the same reason that my local township has a $1,000 fine for littering and/or dumping in isolated areas: deterrence.
When the odds of getting caught are extremely low, the law tends to compensate by escalating the fine to the point where only an idiot would think that breaking that particular law is a good idea. In all probability you won't get caught... but if a cop just happens to be cruising by and you do, watch out.
Unfortunately, this is going to have to happen quite a few more times before all of the idiots who think they're entitled to free music/movies/software get the message that maybe, just maybe, that latest 50-cent download isn't worth the risk.
"... by which Apple guards the gates so those damn dirty hippy developers don't sneak in and litter the pristine paths and gardens with their own unsanctioned apps."
Ever been to the Downloads section of Apple's web site?
I have an original "Red Book" for the Apple II that shows hardware schematics, circuit diagrams, software entry points, and a lot more. The Mac had vectors for patching the OS and the ROM such that you could pretty much do anything to the OS. MultiFinder was one result.
As such, I might question your use of ALWAYS.
One has only to look at the Windows platform to see what happens when you allow just anyone unbridled access to anything and everything on a computer.
Apple said that the public will NOT be able to develop for the iPhone, because DOING SO HAD THE POTENTIAL to break AT&T's network.
Come up with a sandboxed widget platform for the iPhone, and that potential might be dramatically reduced. Come up with a reduced-security level account that 3rd party applications could run under, and that potential again might be dramatically reduced.
IOW, circumstances could change. At which point development for it might be opened up.
But I'm sure you'd prefer to think that they're lying...
That's probably easier said than done. After all, a thief is going to be ransacking your house LOOKING for all of your little hidey-holes.
Basically, you need to follow the rules that make your house less of a target. Outdoor lighting, indoor lighting, maybe a radio on timers so it looks like someone is home. Get an alarm system and SERVICE, and post the signs. Perhaps even add some video cameras here and there.
Make any thief think the house down the block is a better target. Failing that, use the alarm system and service so that the thieves know that there's a time limit and to ensure that they spend as little time as possible searching your house. And lock down your stuff (TVs, computers, etc.) so that it's harder to take, and more time consuming to do so. (Every locked door, cabinet, locked down device, safe, etc., takes time to deal with.) Heck, even using wire ties on your TV and stereo power cords will slow them down.
And if you're REALLY paranoid, we can talk about fingerprint traps, decoys, and a few other things. Remember, most thieves are not the super-professionals you see on film.
You may not be able to STOP them, but you can work to make things more difficult for them, and to reduce your losses.
And when there's a fire that burns for half-hour or so before being put out by the fire department, leaving everything a mess but pretty much the entire structure intact? (A much more likely scenario.) What then?
Here's a clue. Contact your local fire department or fire marshall and ASK THEM YOUR QUESTIONS.
Why not spend twenty minutes and get some real answers, instead of engaging in a useless mental masturbation session with your boss? Explain your circumstances and ask THEM if a fire safe is worthwhile, and then if so then ask for some recommendations.
I have a friend who has one of those in a closet. Open the closet, however, and the first thing you see is the blinking WiFi webcam mounted on the wall above it. He even hung a little sign from it that says "Smile!"
No, the labels aren't scared, they're pissed off that Apple has the ability (and the gall) to stand up to them and tell them what to do.
As such, I think you're missing an essential part of the strategy: The labels put MP3s on Amazon in an attempt to drive customers away from Apple, with the result that if enough people switch then Apple no longer has the clout to stand up to them. After that the next time the contracts are negotiated they raise the rates everywhere and require everyone to use whatever brand of DRM they see fit.
Goodbye DRM-free iTunes. Goodbye DRM-free MP3s.
As much as I like Amazon, I like Apple's stance on the subject more. I'm sticking with iTunes.
That logic doesn't track, because that new device would in all likelyhood ALSO have your contact list, WiFi, maybe 3G, and so on. As such, an iPDA would ALSO make a perfect spying device too.
Actually, with Intel vs. PPC you really couldn't compare RAW clock-speed-to-clock-speed because the processors handled instructions differently, you had internal and external clocks, differing pipelines, and so on. And early on, the PPC could cream the x86.
After the switch, however, the emphasis WASN'T on clock speed, but how fast that processor did the same tasks, and in that Moto/IBM just couldn't keep up with Intel.
I'm simply afraid that the only reason the labels have provided Amazon has DRM-free music is to entice such a move away from Apple and the iTunes store. Once accomplished, the labels will "re-negotiate" their contracts with both Apple and Amazon and once again require DRM'ed downloads on both sides, pointing to the inevitably pirated DRM-free tracks that they "found" on the web.
Apple won't be able to say no, since they'll have lost the market share "clout" with which to do so, and Amazon won't, since failure to comply would mean losing their new online music store/profit center.
And what happens if Amazon becomes the largest distributor and refuses to go the DRM-lockdown route in the future? (Which you know the labels are counting on. First they suck you off iTunes. Then they think they can change they rules as they see fit.)
Is Universal going to start crying again about only getting 70% of the sale and then pick up its marbles and go home?
"I'm thinking many who would have continued being early adopter consumers may now think again before opening our wallets."
I have a friend who bought two iPhones for her family who was initially upset with Apple, but was mollified with the rebate. When asked if it would impact future purchases, her answer was a firm "it depends". For example, she's been waiting for a new super-slim aluminum 12" MacBook for ages. If announced tomorrow, she'd be first in line, no questions asked.
"Why should this be a problem in the first place? "
Because many people were into existing AT&T 2-year contracts with "free" phones that could not be cancelled, at least no without some hefty fees. If you were one of those people, you would have had to wait for perhaps two years before you could have purchased a phone had Apple gone "rogue".
"Oh, yes. It's simply wonderful for consumers to be charged twice for every ringtone they buy -- three times if they've ripped a song from a CD."
Tell it to the labels. It's their song licensing issues. And $1.98 is still better than the $3.50 or $4.95 that SOME companies charge for a 'tone.
"Pardon my Swahili, but who gives a shit? You really think AT&T didn't get to sign off on everything Apple did with this thing?"
Not to as great a degree as some companies, like Sprint or Verizon, who'll demand interface changes, or that certain features be locked or disabled.
"Apple upset its most loyal, most wealthy customers."
Correction, Apple upset SOME of its most loyal, most wealthy customers. I'm pretty loyal, but not wealthy and definitely not upset.
With the coupon I basically spent an extra $100 to get a phone two months sooner. Enjoyed having it too. Heck, it seems like I've paid nearly that much at times to get Express shipping for some product or gear I bought mail order or via the web.
Will it affect future buying decisions? Maybe. Depends on what it is, what it does, and how badly I want it. Just talked to a friend who bought two and she feels pretty much the same way. So I think you're extrapolating your own feelings onto the customer base, which may not or may not reflect the actual reality...
Uh, did you miss the part about AT&T customers getting access w/o waiting for plans to expire, and users getting better data service terms, and customized services, and being able to buy though AT&T if you didn't have a local Apple store, and cheaper music and ringtones through iTunes, and not having had AT&T screw with the phone's interface, and...
Never mind. Obviously you can't read for comprehension...
"That was awesome how you completely dodged the question of locked-up iPhones and iPod touches."
Well let's see, by partnering with AT&T Apple gained immediate access to AT&T's customers through an agreement that let them upgrade existing accounts immediately, regardless of contract. They also gained a marketing partner, and an additional 2,000 or so outlets for the phone. They also got AT&T to do some custom software support, in part due to the exclusive deal. They also convinced them not to rape their customers with overly expensive data plans.
They also convinced AT&T to support Apple's iTunes store for downloadable music (against their Mobile Music offering), and also in regard to downloadable ring tones (also against AT&T's offerings). And they also managed (mostly) to convince AT&T not to screw with the phone's interface or software or syncing services (like Sprint requiring a Vision plan to get photos off one of their phones). AND they got a cut of the service plan.
Without an arrangement, I suspect Apple would have had a difficult time getting their phone offered by AT&T and T-Mobile, especially in terms of it having a competing music service offering.
Translated, AT&T got to offer Apple's latest and greatest to their customers, and Apple got a Titanic-sized boatload of concessions. Concessions that I think tend to vastly outweigh the minor inconvenience of having an "unlocked" phone. But that's just me.
The 3% worldwide number puts Apple against PCs used in embedded systems, cash registers, kiosks, cheap pcs in China and India, and, as mentioned against business computers and servers.
Change things around a bit, and figure out Apple's numbers in the US market. Or their percentage of the US home/consumer market. Or the number of notebooks they're selling against competitors. (IIRC, that's 13%, 25%, and 17%, respectively.)
Go MVNO and you still end up dealing with carriers, as you're going to pay a premium to run on their networks, potentially at non-competitive rates. Further, at least AT&T customers could upgrade prior to contract expiration. Go MVNO, and you can't sell a thing until people are ready to leave their existing carriers.
Maybe if/when Apple and Google built their own IP6-based network...
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The amount is high for the same reason that my local township has a $1,000 fine for littering and/or dumping in isolated areas: deterrence.
When the odds of getting caught are extremely low, the law tends to compensate by escalating the fine to the point where only an idiot would think that breaking that particular law is a good idea. In all probability you won't get caught... but if a cop just happens to be cruising by and you do, watch out.
Unfortunately, this is going to have to happen quite a few more times before all of the idiots who think they're entitled to free music/movies/software get the message that maybe, just maybe, that latest 50-cent download isn't worth the risk.
"but things have changed"
Tell that to all of the XP systems I keep track of, with all of the firewalls, antivirus software, and security updates...
"... by which Apple guards the gates so those damn dirty hippy developers don't sneak in and litter the pristine paths and gardens with their own unsanctioned apps."
Ever been to the Downloads section of Apple's web site?
I have an original "Red Book" for the Apple II that shows hardware schematics, circuit diagrams, software entry points, and a lot more. The Mac had vectors for patching the OS and the ROM such that you could pretty much do anything to the OS. MultiFinder was one result.
As such, I might question your use of ALWAYS.
One has only to look at the Windows platform to see what happens when you allow just anyone unbridled access to anything and everything on a computer.
Apple said that the public will NOT be able to develop for the iPhone, because DOING SO HAD THE POTENTIAL to break AT&T's network.
Come up with a sandboxed widget platform for the iPhone, and that potential might be dramatically reduced. Come up with a reduced-security level account that 3rd party applications could run under, and that potential again might be dramatically reduced.
IOW, circumstances could change. At which point development for it might be opened up.
But I'm sure you'd prefer to think that they're lying...
If you're a major multinational then you use Iron Mountain or some other equivalent service. Not really an option for most people.
That's probably easier said than done. After all, a thief is going to be ransacking your house LOOKING for all of your little hidey-holes.
Basically, you need to follow the rules that make your house less of a target. Outdoor lighting, indoor lighting, maybe a radio on timers so it looks like someone is home. Get an alarm system and SERVICE, and post the signs. Perhaps even add some video cameras here and there.
Make any thief think the house down the block is a better target. Failing that, use the alarm system and service so that the thieves know that there's a time limit and to ensure that they spend as little time as possible searching your house. And lock down your stuff (TVs, computers, etc.) so that it's harder to take, and more time consuming to do so. (Every locked door, cabinet, locked down device, safe, etc., takes time to deal with.) Heck, even using wire ties on your TV and stereo power cords will slow them down.
And if you're REALLY paranoid, we can talk about fingerprint traps, decoys, and a few other things. Remember, most thieves are not the super-professionals you see on film.
You may not be able to STOP them, but you can work to make things more difficult for them, and to reduce your losses.
And when there's a fire that burns for half-hour or so before being put out by the fire department, leaving everything a mess but pretty much the entire structure intact? (A much more likely scenario.) What then?
Here's a clue. Contact your local fire department or fire marshall and ASK THEM YOUR QUESTIONS.
Why not spend twenty minutes and get some real answers, instead of engaging in a useless mental masturbation session with your boss? Explain your circumstances and ask THEM if a fire safe is worthwhile, and then if so then ask for some recommendations.
I have a friend who has one of those in a closet. Open the closet, however, and the first thing you see is the blinking WiFi webcam mounted on the wall above it. He even hung a little sign from it that says "Smile!"
Because: A) It's a better codec, and B) nearly any modern player will handle AAC.
Which means what? They make rank number two, but what are their sales? 1/100th that of iTunes? 1/1,000th?
No, the labels aren't scared, they're pissed off that Apple has the ability (and the gall) to stand up to them and tell them what to do.
As such, I think you're missing an essential part of the strategy: The labels put MP3s on Amazon in an attempt to drive customers away from Apple, with the result that if enough people switch then Apple no longer has the clout to stand up to them. After that the next time the contracts are negotiated they raise the rates everywhere and require everyone to use whatever brand of DRM they see fit.
Goodbye DRM-free iTunes. Goodbye DRM-free MP3s.
As much as I like Amazon, I like Apple's stance on the subject more. I'm sticking with iTunes.
That logic doesn't track, because that new device would in all likelyhood ALSO have your contact list, WiFi, maybe 3G, and so on. As such, an iPDA would ALSO make a perfect spying device too.
Actually, with Intel vs. PPC you really couldn't compare RAW clock-speed-to-clock-speed because the processors handled instructions differently, you had internal and external clocks, differing pipelines, and so on. And early on, the PPC could cream the x86.
After the switch, however, the emphasis WASN'T on clock speed, but how fast that processor did the same tasks, and in that Moto/IBM just couldn't keep up with Intel.
I'm simply afraid that the only reason the labels have provided Amazon has DRM-free music is to entice such a move away from Apple and the iTunes store. Once accomplished, the labels will "re-negotiate" their contracts with both Apple and Amazon and once again require DRM'ed downloads on both sides, pointing to the inevitably pirated DRM-free tracks that they "found" on the web.
Apple won't be able to say no, since they'll have lost the market share "clout" with which to do so, and Amazon won't, since failure to comply would mean losing their new online music store/profit center.
And what happens if Amazon becomes the largest distributor and refuses to go the DRM-lockdown route in the future? (Which you know the labels are counting on. First they suck you off iTunes. Then they think they can change they rules as they see fit.)
Is Universal going to start crying again about only getting 70% of the sale and then pick up its marbles and go home?
Methinks, perhaps, that the thought was that Apple should have charged $399.95 in the first place.
"I'm thinking many who would have continued being early adopter consumers may now think again before opening our wallets."
I have a friend who bought two iPhones for her family who was initially upset with Apple, but was mollified with the rebate. When asked if it would impact future purchases, her answer was a firm "it depends". For example, she's been waiting for a new super-slim aluminum 12" MacBook for ages. If announced tomorrow, she'd be first in line, no questions asked.
"Why should this be a problem in the first place? "
Because many people were into existing AT&T 2-year contracts with "free" phones that could not be cancelled, at least no without some hefty fees. If you were one of those people, you would have had to wait for perhaps two years before you could have purchased a phone had Apple gone "rogue".
"Oh, yes. It's simply wonderful for consumers to be charged twice for every ringtone they buy -- three times if they've ripped a song from a CD."
Tell it to the labels. It's their song licensing issues. And $1.98 is still better than the $3.50 or $4.95 that SOME companies charge for a 'tone.
"Pardon my Swahili, but who gives a shit? You really think AT&T didn't get to sign off on everything Apple did with this thing?"
Not to as great a degree as some companies, like Sprint or Verizon, who'll demand interface changes, or that certain features be locked or disabled.
"Apple upset its most loyal, most wealthy customers."
Correction, Apple upset SOME of its most loyal, most wealthy customers. I'm pretty loyal, but not wealthy and definitely not upset.
With the coupon I basically spent an extra $100 to get a phone two months sooner. Enjoyed having it too. Heck, it seems like I've paid nearly that much at times to get Express shipping for some product or gear I bought mail order or via the web.
Will it affect future buying decisions? Maybe. Depends on what it is, what it does, and how badly I want it. Just talked to a friend who bought two and she feels pretty much the same way. So I think you're extrapolating your own feelings onto the customer base, which may not or may not reflect the actual reality...
Uh, did you miss the part about AT&T customers getting access w/o waiting for plans to expire, and users getting better data service terms, and customized services, and being able to buy though AT&T if you didn't have a local Apple store, and cheaper music and ringtones through iTunes, and not having had AT&T screw with the phone's interface, and...
Never mind. Obviously you can't read for comprehension...
Hey! I liked the ///. And the Lisa and Newton, for that matter. (grin)
"That was awesome how you completely dodged the question of locked-up iPhones and iPod touches."
Well let's see, by partnering with AT&T Apple gained immediate access to AT&T's customers through an agreement that let them upgrade existing accounts immediately, regardless of contract. They also gained a marketing partner, and an additional 2,000 or so outlets for the phone. They also got AT&T to do some custom software support, in part due to the exclusive deal. They also convinced them not to rape their customers with overly expensive data plans.
They also convinced AT&T to support Apple's iTunes store for downloadable music (against their Mobile Music offering), and also in regard to downloadable ring tones (also against AT&T's offerings). And they also managed (mostly) to convince AT&T not to screw with the phone's interface or software or syncing services (like Sprint requiring a Vision plan to get photos off one of their phones). AND they got a cut of the service plan.
Without an arrangement, I suspect Apple would have had a difficult time getting their phone offered by AT&T and T-Mobile, especially in terms of it having a competing music service offering.
Translated, AT&T got to offer Apple's latest and greatest to their customers, and Apple got a Titanic-sized boatload of concessions. Concessions that I think tend to vastly outweigh the minor inconvenience of having an "unlocked" phone. But that's just me.
The 3% worldwide number puts Apple against PCs used in embedded systems, cash registers, kiosks, cheap pcs in China and India, and, as mentioned against business computers and servers.
Change things around a bit, and figure out Apple's numbers in the US market. Or their percentage of the US home/consumer market. Or the number of notebooks they're selling against competitors. (IIRC, that's 13%, 25%, and 17%, respectively.)
Go MVNO and you still end up dealing with carriers, as you're going to pay a premium to run on their networks, potentially at non-competitive rates. Further, at least AT&T customers could upgrade prior to contract expiration. Go MVNO, and you can't sell a thing until people are ready to leave their existing carriers.
Maybe if/when Apple and Google built their own IP6-based network...