What Is Apple's Long-Term Strategy?
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- June 5, 2000
Mac users have it pretty good. Apple's stock is high (despite its
recent slide), a new OS is on the way, and market share has
stabilized.
So what's next for Apple? How does it intend to remain on top?
Colored computers were definitely the lifesaver for them, and they
continue to deliver knockout products. What I'm more concerned about is
the long-term strategy that Apple will use to survive and thrive.
Product announcements have slowed down a lot
recently. The slowdown comes after several product successes. The
iMac was a hit, the
iBook was a hit,
the new PowerBook was
a hit and the G3 and
G4 desktops were
hits. This acceleration of product introductions was probably the
result of Apple's desperate scramble from the brink of death.
On the design front Apple, appears to be coasting. No new designs
appear to be in the works. Of course, this could easily be attributed
to Apple's no leak policy that has made the Macintosh rumor an
endangered species. For all we know, the iMac's replacement is heading
for production right now. Of course, the iMac, G4, iBook, and PowerBook
still look great. Why mess with what works?
It's still a little disconcerting, however, that no new designs seem
to be in the works to keep Mac sales high. The decline in iMac
sales isn't doing anything to reassure investors. I think that OS X
is probably affecting new hardware designs and products. OS X is a huge
undertaking that requires a fair number of resources. Motorola's chip
problems also seem to be holding Apple back.
I'm still interested in Apple's long-term design plans. Are new
designs waiting in the wings? Will the venerable iMac see something
more than a speed and RAM bump in the near future?
On the software side, things are a little clearer: OS X is where
we're going. I firmly believe that OS X is the foundation of Apple's
next great leap forward. This leap would not be possible with the
current Mac OS.
Microsoft has been touting their Next Generation Windows Services as
the technology that will ensure their market dominance. Unfortunately,
Microsoft is basing this strategy on an OS that, while greatly
improved, remains less stable than Unix machines. Potential users may
also question Microsoft's ability to keep their data secure over the
Internet. Recent bug scares indicate that their doubts would be well
founded. At least if Apple chooses a similar strategy, the Unix-based
core will be rock solid and reasonably secure.
As several readers pointed out after my last
column, Apple is making a somewhat low-key push into the server
market with a Web Objects price cut. More Web Objects developers and
more applications means more OS X servers. That's one more cog in the
machine to drive Apple forward.
So what's the deal? I haven't heard or seen anything on Apple's
strategy beyond OS X. Not much seems to be up as Adam Banks put it in
MacUser.
Where is Apple going? I don't know. But I'm sure they have a plan.
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