Who's Knifing What?

Horace Dediu wrote an a nice piece over at asymco entitled "Who's Knifing What?":

Apple has maintained its attention steadfastly on products while Microsoft has maintained unwavering focus on the distribution and control over value chains. During the 1990s one strategy worked and the other didn’t. During the following decade they changed places. The locus of the two strategies did not change. What seems to have changed is what the market values. What incenses me the most by Android/Google fans/apologists who hate Apple is that I feel Apple was the victim to Microsoft's bullying during the '90s. Apple managed to come back and win during the 00's by executing with superior products that succeeded because they were the best. They didn't use their monopoly to strong arm the industry into their business model, but instead they won by making a better product than everyone else. I believe Macs/iPhones/iPads are better products than any Android device that has came to market so far. I feel so many of these people have no appreciation for this history that Apple has had to go through to get where they are today.

The $1799 Glass Of Water

Last Sunday, March 6, was my first anniversary with my lovely wife, Steffanie. We had just gotten back from sending a relaxing weekend at the 1804 Inn at Barboursville Vineyards just outside of Charlottesville VA. Steffanie was suffering from one of her headaches (which will hopefully be gone soon) and I was crawling around on the living room floor assembling a new coffee table that we had purchased from IKEA on the way back from our trip. Steffanie was lying on the couch napping with a fresh glass of ice water resting on a coaster on the old coffee table. The lights were off in the room, with only the shades open (the lighting was dim) because it was raining outside. While I was putting together this piece of furniture, I was simultaneously installing Snow Leopard on the media center Mac Mini (I had installed thew OS X Lion Developer Preview on it to test it out, but due to it breaking a few important 3rd party apps, I needed to reinstall 10.6). While going through the Snow Leopard install screen, I did something very stupid. I attempted to sit on the edge of the old coffee table while holding my combo Apple bluetooth wireless keyboard & Magic trackpad (with Twelve South's Magic Wand to attach them). When I did this, I leaned back slightly and tipped this glass of ice water over causing its cold, and very wet, contents to spill across the coffee table. The water spread fast, sloshing up against the closed lid of Steff's MacBook Pro and a bit went into the rear exhaust vent. At the time, I had no idea that water had gotten inside the case, which I will figure out later on - after it was too late. Panicking, I leapt to my seat, setting aside the keyboard/trackpad combo and grabbing the MacBook Pro. I immediately turned it so that the side facing the water was towards the ground and rushed to grab paper towels to absorb any water. The first thing I did was to check any cracks or crevices for water, running the thin edge of a paper towel in all I could find. After searching and drying, for several minutes, I thought I had gotten it all. Me, being an idiot, neglected to unscrew the bottom cover and check the inside for water before attempting to turn it on. Instead, I decided to put it on the kitchen counter and turn it on. Bad move. The screen flickered to life and the Mac began to try to wake from sleep. About half-way into lighting up, the screen flickered and the computer powered down. Uh oh. Pressing the power button again...nothing happened. At this point I flipped it over and grabbed my Torx multi-screwdriver made specifically for servicing Macs. After removing the bottom cover, I found a few small flecks of water here and there around the case. I carefully dried all of these off, and fetched a can of air, to blow air in every crack or crevice I could towards the exhaust vent. After several more minutes of thorough checking, I was sure I had gotten any remaining water out. I quickly put the case-cover back on, flipped the machine over, and tried to turn it on once more. Nothing. I then plugged in the MacBook Pro into the Magsafe and, to my surprise, it booted just fine. Once in OS X, a cursory check of the Battery menubar UI showed that OS X reported the batter as "Not Charging" (later reboots would have it also randomly display "No Battery). To skip several more paragraphs of detailed trial and error, I can say that at this point the MacBook Pro only works when plugged in. If you unplug it, it will die. No battery capability what-so-ever. If you put it to sleep, unplug it, move it to another location, and then plug it back in, it will boot up as if it was completely off. Needless to say, Steffanie was not happy with me at this point. I made a Genius Bar appointment at our closest Apple Store for the next day after work. The Genius was very nice, helpful and sympathetic. He attempted to switch out the battery, but no luck. Apple's estimated cost to service/replace the logic board (the next most likely culprit of the problem) comes in at around $1250.00. Well, there went my plans to have acquired an iPad 2 on launch day. I feel incredibly guilty for what I did to my wife's one and only Mac. She uses this computer for everything - it's her main workstation. I can't just go out and buy myself a new iPad 2 given that I currently have a 27" iMac, iPhone 4, iPad 1, and Mac Mini, while she is stuck with, what I now jokingly call, a DeskBook Pro. Also to further pour salt in the wound (as if the $1799 replacement cost for a new MBP wasn't enough), by my having missed the launch day, it will now likely be 3-4 weeks before I can now even buy an iPad 2 due to stock shortages. As some of you may have previously seen from my tweets or her blog post, she is set to have brain surgery in 9 days. I was looking forward to being able to use the iPad 2 to take my mind off of worrying as I undoubtedly will be spending a lot of time in waiting rooms, hospital rooms, or at her bed side while she is recovering. I do have an idea though. One that she doesn't get to know about. And yes, honey, I know you'll read this so don't bother asking me.

iPad: The First Year

This was Apple's promo movie as shown during yesterday's event. I cannot think of one other company that I buy products from that does such a good job of tastefully promoting its own products such as this. And although I like to scold my wife from time to time by saying "you're falling for their marketing!", when I watch this video, I do not feel that it's marketing (of course it is) because I agree with it. Let's see Microsoft, Google, Motorola or HP do that.

Steve Jobs Takes Stage To Unveil iPad 2

ipad2_title_20110302 Surprising many people with his appearance, Steve Jobs took the stage today at Apple's iPad 2 event to talk about the success of the first iPad and to announce the iPad 2. Rumors that started yesterday had suggested he might make an appearance at the event, but few thought he would do the whole presentation himself. Jobs' first bit of news was to announce that Random House was coming to the iBook store, and that to date, Apple had sold over 100 million books in the iBooks store during the first year. During this same narrative, he announced that iTunes now has over 200 million user accounts tied to credit cards. It goes without saying this is their way of saying they have 200 million potential customers in their ecosystem for developers and content providers to sell to. Job also announced that, to date, the iTunes Store has paid over over 2 billion dollars to iPhone app developers in profits. He also highlighted the stat of having sold over 100 million iPhones to date. All of this these business updates came before the big announcement of the day, iPad 2. He began his reveal of the iPad 2 by reciting a few iPad stats in its first year. Apple has sold over 15 million iPads in its first 9 months, which was more than every Tablet PC ever sold. Apple generated $9.5 billion in revenue for Apple during its first 9 month - again - April through December folks. Less than 1 year of time. Jobs was quoted to say, "and our competitors were just flummoxed." Jobs next showed a slide on screen showing the App Store has over 65,000 apps for the iPad at the time of this writing. He then displayed a slide poking fun at the Android Honeycomb tablets with the number 100 on the slide saying, "and I think we're being a little generous here." After a quick video that chronicled the first year of the iPad and is worth watching, Steve moved on to the reveal of the iPad 2. The key features are as follows: overview_gyro_20110302iPad 2 * All new design * Dramatically thinner - 33% thinner, 8.8mm down from 13.4mm (the new iPad 2 is thinner than the iPhone 4 which is 9.3mm) * Lighter - 1.3 pounds (down from 1.5 for iPad 1) * New curved sides * Comes in White or Black overview_performance_20110302* Faster - A5 Dual-core Processors * 2X faster CPU * 9X faster graphics * Same power consumption as A4 * First dual core tablet to ship in volume * Video Cameras * Front-facing camera, captures VGA * Rear-facing camera, captures 720p HD image_chip_20110302* Gyroscope * Verzion & AT&T Models Available (separate devices) * Same 10 hour battery life * Same price points as the first iPad (Wifi: $499, $599 and, $699 & 3G: $629, $729, and $829) * Ships March 11 in US * Ships March 25 internationally After finishing his list of features, he moved straight on two discuss two new accessories Apple would be releasing along-side iPad 2. The first accessory was a new HDMI adapter. This adapter is tailored for the iPad 2 but is also backwards compatible with the iPhone 4 and iPad 1. It, however, only does mirrored video output for the iPad 2. It's full feature list is as follows: overview_mirroring_20110302HDMI video out adapter * HDMI mirrored video output * Up to 1080p * Works with all apps * Supports rotation * No setup or configuration * Charge iPad 2 while using it * Priced at $39 Steve then revealed their new Smart Covers which thoroughly impressed me. If you haven't done so already, be sure to check out the demo video of Smart Covers. These new covers are designed to be ultra-light weight and very utilitarian. Using magnets, Apple insures the covers align up perfectly on the device and snap into place perfectly. If they work as well as the demo video shows, I think that they will be a treat to use. It seems as if Apple spent more time designing these covers than most iPad competitors did the exterior of their devices. Smart Cover details are as follows: overview_smartcover_gallery1_20110302 image_smartcover_20110302Smart Covers * Multi-colored * Two types of material, leather and polyurethane * Magnets grasp and auto-align it * Adds minimal weight and thickness * Micro-fiber lining cleans screen * Wake on open - sleep on close * Easy to remove or change * Polyurethane priced at $39, leather priced at $69 Next, Steve introduced Scott Forstall on stage to overview the next version of iOS, 4.3. Scott wasted no time in listing the new features of iOS 4.3: iOS 4.3 * Safari performance * Nitro JavaScript engine * iTunes home sharing * AirPlay improvements * Preference for iPad switch * Mute for rotation lock * Personal hotspot * iPhone 4 only * New apps * Photobooth (universal - free) * Facetime (universal - free) * iMovie (coming to iPad - $4.99) * Precision editor * Multitrack audio recording * New themes * AirPlay to Apple TV * Share your videos in HD * Universal app * Garageband (coming to iPad - $4.99) * Touch instruments (Grand piano, organ, guitars, drums, bass) * Guitar amps and effects * 8 track recording and mixing * 250+ Loops * Email ACC file of your song * Compatible with Mac version overview_chicklet_garageband_20110302overview_chicklet_imovie_20110302overview_facetime_icon_20110302overview_photobooth_icon_20110302Scott, Steve, Randy Ubillos (Chief Architect, Video Applications), and Xander Soren (Director of Music Marketing) showed off demos of each of these apps in succession. Again, if you want to see them in action, check out their demos during the Keynote itself. I think the improvements to iPad are killer. One of my problems with editing videos on iPhone 4 was due to the fact that the screen was so small it made video editing difficult. iMove on iPad 2 looks absolutely killer. I'm more of a still photography enthusiast myself, however I have the urge to try to make a nice movie on the iPad. Am I going to buy one? Because my wife will likely read this, probably not.[^1] [^1]: Is she gone now? Okay, good...yeah, I'll probably get one.

Photo: President Obama meets with Tech Luminaries

President Barack Obama joins a toast with Technology Business Leaders at a dinner in Woodside, California, Feb. 17, 2011.

Here’s the full list of attendees according to the NY Times, LA Times and SF Chronicle:

  • John Doerr, partner, Kleiner Perkins Caufield & Byers
  • Carol Bartz, president and CEO, Yahoo!
  • John Chambers, CEO and chairman, Cisco Systems
  • Dick Costolo, CEO, Twitter
  • Larry Ellison, co-founder and CEO, Oracle
  • Reed Hastings, CEO, NetFlix
  • John Hennessy, president, Stanford University
  • Steve Jobs, chairman and CEO, Apple
  • Art Levinson, chairman and former CEO, Genentech
  • Eric Schmidt, chairman and CEO, Google
  • Steve Westly, managing partner and founder, Westly Group
  • Mark Zuckerberg, founder, president and CEO, Facebook

Going around the circle, starting from the President's right: Mark Zuckerberg, Unknown, Dick Costolo, Carol Bartz , John Hennessy, Reed Hastings, Larry Ellison, John Doerr, John Chambers, Art Levinson, Eric Schmidt, Unknown, Steve Westly, and Steve Jobs.

P021711PS-0705

Also posted to the official White House Flickr account, a photo of the President speaking with Mark Zuckerberg.

P021711PS-0659

Significant Percentage Of Verizon Android Users To Switch to iPhone

Some weeks ago I wrote a post regarding the iPhone coming to Verizon. My main point was to assert that I thought it would dramatically hurt Android sales. Today, a survey taken by a high-tech online research firm based in Los Angeles called uSamp, has given evidence that I may be correct. The results of this survey were published in an article on Fortune written by Philip Elmer-DeWitt.

From the article:

Survey: 44% of Verizon Android users likely to switch to iPhone on Day One

For Blackberry users it's 66%, and nearly a quarter are willing to stand in like to get one

Drawing from a pool of 4.7 million panelists, uSamp asked a sample of 700 AT&T (T) and Verizon (VZ) smartphone owners how likely they were to switch to Verizon's version of Apple's (AAPL) iPhone next Thursday, Feb. 10, the first day it goes on sale.

The results are posted in full below the fold. The key findings:

  • Among Android owners, 44% are either very likely (19%) or somewhat likely (25%) to buy an iPhone on Feb. 10.
  • Among RIM owners, 66% are very likely (32%) or somewhat likely (34%) to switch on Day One. Nearly a quarter (24%) of the Android and RIM switchers say they'd be willing to stand in line to get one of the first Verizon iPhones.
  • Owners of AT&T (T) iPhones are less likely to switch (8% very likely, 18% somewhat) but the switchers are more likely (29%) than RIM or Android owners to stand in line that first day. Perhaps they have more practice queuing up for an iPhone.

Most Verizon Android Owners Are Main Stream Users

It is my firm belief that most Verizon Android owners are not open-source geeks/advocates who consciously went to (or stayed on) Verizon to buy an Android because they're anti-Apple. I would wager to say that most Android owners on Verizon are main-stream users who wanted iPhones but because they were unwilling to switch to AT&T. Instead, they walked into a Verizon store and asked a salesperson to give them a phone that was "like an iPhone". The salesperson handed them an Android and sold them on the idea that it was "just as good" so that's what they bought. A certain percentage of these users are not happy. They want to be able to use the same apps that all of their friends who have iPhones can use. They are not happy that the phone doesn't "work as good" as iPhones do (UI, ease of use, stability, battery life - things that Apple geeks can point out, but non-tech savvy users might have a hard time quantifying).

This has all changed. Some of these users will go to Verizon and immediately switch. Some of these users will switch to an iPhone when their contract is up and they can get the subsidized upgrade price. The main change though is that these users are now able to walk into a Verizon store and get the iPhone. Not a phone that is "like the iPhone" or "just as good" as the iPhone...but an actual iPhone. And that is why Android is in trouble.