Category: Innovation

  • Lowered expectations – What is the future for Apple?

    Lowered expectations – What is the future for Apple?

    Last Friday I had a story in Business Spectator on the future of Apple in light of the company’s warning of a 20% fall in revenue next quarter.

    The clear message from Apple’s executives was that the company is facing a terminal decline in iPod sales and the iPhone – it’s most profitable and highest selling product – is facing slower sales.

    So the search is on to find something that will replicate the iPhone’s success, with the biggest candidate being the iWatch.

    The problem with that is the entire wearable technology market is only forecast to be $6bn which is a seventh of Apple’s $42 billion profit last year, so the iWatch can never replace falling iPhone sales.

    It may well be for Apple that the period of massive profits and growth is drawing to an end, it doesn’t mean the company is dying – for a start they has nearly $200bn in cash reserves and a healthy $150 billion in sales each year.

    Short of Tim Cook unveiling something similar to the iPhone, the future for Apple is probably going to be a bit modest than past few years of huge growth, that’s not a bad thing.

    Rather than being the end of Apple, it’s more a revision to the role the company has held for most of it’s existence – a high profit, niche business that sells on quality and brand rather than fighting in the commodity markets.

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  • Milestones of the personal computer industry

    Milestones of the personal computer industry

    “There have only been two milestone products in our industry to date,” Steve Jobs told the Boston Computing Club in 1984. “The first was Apple II in 1977 and the second was the IBM PC in 1981.”

    Jobs at the time was announcing the third breakthrough – the Apple Mac – which turned 30 last week.

    Looking back over the four decades of the PC industry, Jobs’ claim that the Apple Mac was the sector’s third milestone stands up to scrutiny, however the greatest milestone of all for the PC was the launch of Window 3.0 in 1990.

    The rise of Windows

    Windows 3.0 changed the business model of the industry, it established software vendors – particularly Microsoft – as being dominant over hardware manufacturers, that shift nearly killed Apple and eventually sent most PC builders to the wall.

    Microsoft’s advantage over Apple, IBM, Atari and dozens of other systems, was that users weren’t locked into one vendor’s products. It was possible

    The Windows 3.0 milestone was even more important in that it forced a shakeout in the software industry as well, many of the incumbent vendors – most notably WordPerfect – though the Windows Graphic User Interface (GUI) was a flash in the pan and that most office workers would prefer to use keyboard instructions rather than mouse clicks.

    WordPerfect was horribly, horribly wrong in judging the market and by the time they released the Windows versions of their product Microsoft had captured key market share for Word and the bundled Office suite that dominates the business world today.

    Going mobile

    So things were good for Microsoft until the next milestone, which again was marked by Steve Jobs, the launch of the iPhone genuinely did change the smartphone industry and was the first inkling of mobile would eventually destabilise the PC sector.

    It’s interesting comparing Jobs’ iconic 2007 iPhone which sets the standard for product launches with the somewhat rough at the edges 1984 Boston presentation although both show how Steve Jobs was a master salesperson and a passionate believer in his products.

    The PC’s final milestone

    Three years later Steve Jobs delivered the milestone product that marked the beginning of the end for the PC industry, the iPad finally delivered a mobile computing device that businesses and consumers wanted.

    Apple’s iPad also marked a fundamental shift in the computer industry – no longer did the software companies control the market, power had shifted back to the manufacturers.

    From that moment on the PC, and Microsoft’s Windows business, started a terminal decline.

    The rise and fall of the personal computer is a great illustration of a transition technology. That Steve Jobs bookmarked the beginning and the end of the PC industry is an interesting note about a technology that changed the home and workplace.

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  • When Marissa met Mark

    When Marissa met Mark

    Not unexpectedly, last week’s World Economic Forum featured some high profile panels. One particularly heavy hitting group was the New Digital Context session featuring some of the tech industry top CEOs.

    Featuring Yahoo’s Marissa Mayer, Salesforce’s Marc Benioff, Cisco’s John Chambers, BT’s Gavin Patterson and AT&T’s Randall L. Stephenson the panel looked at the rate of disruption and change to global business.

    A  key point in the discussion is Benioff and Mayer disagreeing with the host, Forrester CEO George Colony, about the rate of change and how businesses should be managing disruption.

    Mayer’s view was Yahoo!’s is evolving to changes markets while Benioff feels the rate of change is so great that most corporations’ fundamental business models being changed.

    It’s an interesting point and something we’ll look at a bit closer tomorrow.

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  • The evolution of the Internet of Things

    The evolution of the Internet of Things

    One of the notable things about modern technology is that few of the developments are actually new, the Internet of Things is a good example of this.

    Most of the tech we talk about is a collection of existing technologies that have been cobbled together — cloud computing, 3D printing and the Internet of things are all good examples of this.

    Libelium’s Cooking Hacks community page has a good infographic on how the makers’ movement, crowd funding and miniaturization have driven the development of the Internet of Things, 3D printing and wearable technologies.

    The diagram, shown at the bottom of the post, is a good illustration of how technologies are evolving and the businesses that are being spawned from the developments.

    Cooking Hack’s infographic show why it’s an exciting time to be in business.

    maker_movement_cooking _hacks_infographic

     

     

     

     

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  • On looking foolish

    On looking foolish

    Looking foolish is one of the biggest risks when taking chances in business. It’s something every innovator and entrepreneur has to consider.

    Venture Capital investor Mark Suster explains why he doesn’t mind looking foolish with his choice of investors on his blog today.

    One of the toughest things in life is taking the risk of looking foolish in front of your peers yet that’s what the real high risk inventors, innovators and entrepreneurs do with their ventures.

    Light bulbs and the telephone looked ridiculous to many at the time they were invented and no doubt the inventor of the wheel or the Neanderthal who came up with the idea of cooking meat in a fire both probably received a far bit of scorn when they told the others in their tribe about their idea.

    While Suster is talking about ‘moonshot investments’, even the most modest venture is going to attract scorn.

    There would be few people who decided to buy a doughnut franchise, establish a cafe or set up a lawn mowing service who weren’t told by some of their relatives, friends or colleagues that they are doing the wrong thing and they should stick to their safe job in their cosy cubicle.

    Should someone want to change the way doughnuts are made or lawns mowed, then they can expect even more naysayers laughing at them.

    In this current craze about ‘entrepreneurship’ it’s easy to overlook the real costs and risks of running any sort of business. Looking foolish is another of those risks.

    Having a thick hide is another useful attribute when you’re investing, running a business or changing an industry.

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