Apple's Big Decision: Time To Open Up?
from the proprietary-move-can't-last dept
Normally there's not much to be gained from some random commentator saying that Apple is on the path to trouble, just as everything seems to be going in the right direction for the company, but when that commentator is Clayton Christensen, it's certainly worth reading a bit more carefully. Christensen, of course, is the author of the The Innovator's Dilemma, one of a very few business books that is actually worth reading. In this interview with Business Week, Christensen rips apart Apple's strategy with the iPod and suggests that they're following the same script they did with the original Macintosh. It started out great, when a complete proprietary solution made sense, but as more open solutions came along that offered equally good or better solutions without the proprietary nonsense, the market shifted away from them. While it's possible that Apple learned its lesson last time, he doubts it very much, and expects them to remain closed and proprietary for way too long. Another interesting point he makes at the end of the article concerns the problem of boosting "shareholder value" -- which everyone is always taught is management's first job. Since "shareholders" these days are very often quick flipping institutional investors rather than investors with any real vision, he suggests it can be better to pretty much ignore Wall Street and focus on what's right for the company in the long term.
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Reader Comments
The First Word
“iTMS
Clearly I not knowledgeable enough to debate Clayton Christensen but I have to wonder about the argument that there is only one way to thrive and that is to follow the licensing model. Can that be true? In today's computing world is how Microsoft licensed their OS, then set rules for hardware manufacturers that were deemed illegal, and illegally parlayed their monopoly to crush others the only option to follow to succeed? What if iTunes allowed users to hear their music on their phones, on both Windows and Macintoshes, on their iPod, and through their stereo? Is that a path to failure? Also, Mike has mentioned previously that Apple is not selling too many songs through iTMS - so whats preventing users from exporting their rather limited Apple DMR'd library and their vast collection of existing MP3/AAC files to competitor MP3 players?I have to wonder if there would be this much discussion if Microsoft had 80% market share of the music download market - the argument would be how brilliant Microsoft's strategy was.
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actually he seems to be saying
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No Subject Given
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Open?
I'm a huge fan of opensource but let's look at this argument.
Using iTunes I can import any quicktime movie or any mp3 and it plays fine. AND it shows up on my iPod. AND it runs on MAC and WIN. AND um... it's free. Open? - Open enough for me. I'm not a programer so I don't need/want the "source" I just want the "open". iTunes delivers. Now ITMS is another matter altogether.
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The vast majority of music played on iPods is "regular mp3 formatting" (sic). iTunes easliy imports and deals with mp3's and exports it to your iPod
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Re: Open?
If I could... say... download and install Quicktime without installing iTunes... maybe use the USB mp3 player like a USB mp3 player... etc... I would agree with you, it isn't that big of a deal... but Apples fascination with the Man Behind the Curtain is completely ludicrous, and that same behaviour has driven a wedge between "serious" computer users and Mac since the 80s, despite tremendous VALUE in that computer system...
the "serious" digital music community is much, much bigger than us Command-Line-or-Death geeks... this hooded monk nonsense potentially has MUCH more costly implications this time around.
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OSX is held back by the Mac Hardware.
In the case of iTunes and the IPod it is not as clear. In my mind if an iPod also let me Choose a subscription service and iTunes I would want one. But iTunes has some features I bet other players would like to access now and not wait for the copycats.
My Zen Micro isn't as cool as an iPod, but I have greater choice. And I love Rhapsody.
Right now iTunes only does purchased music to iPods and iPods are almost virtually tied to iTunes and the "buy everysong to play it" model.
Currently Apple has a better player design, but Creative and iRiver are closing in on stuff almost as cool and easy to use.
It will take one really well designed player and a targeted marking campaign based on choices to pop the iPod bubble.
Changing players is easier than changing computer OS's
Keep in mind Jobs did resurect the Mac, but even with the best Mac OS ever Mac share of the market continues to fall. That is too bad. Its a nice system. Even though I use Windows, I know strong competition makes for better products.
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What kind of nonsense is this? You have never used iTunes I guess. You can use any almost format of audio file with iTunes, convert WMAs with it, rip your own CDs to ACC, MP3 or Apple loseless. iTunes is a lot more than just an interface to purchasing music, the smart playlists are awesome. iTunes is what makes the iPod the best mp3 player on the market, not the other way around. The power of itunes is not to be matched by any other mp3 application... and I am not talking about the iTunes store at all.
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Proprietary formats
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iTMS
I have to wonder if there would be this much discussion if Microsoft had 80% market share of the music download market - the argument would be how brilliant Microsoft's strategy was.
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Is there still money in Hardware???
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Missed the boat
People buy ipod because its easy to navigate and mainly due to its industrial design. Design weighs more heavily in the portable device market than in a pc and the price differential in real terms not percentage is palatable for the ipod design.
No one wants to carry around the mp3 equivalent of a dell desktop..ugly. Open standard will not provide dell or ms or hp with a product that has character or style.
iTunes is a different matter but ipod is the real contributor to apple's revenues.
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keepin it real
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hahaha
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