A monument to a modern pharaoh: Links of the week

Some of this week’s highlights included the auto industry’s changing business model, inside Microsoft’s Vista mistake and Apple’s memorial to a modern pharaoh. 

Starting a new job makes keeping the website up to date difficult but it is possible to get some reading done. Some of this week’s highlights included the auto industry’s changing business model, inside Microsoft’s Vista mistake and Apple’s memorial to a modern pharaoh.

A monument to a modern pharaoh

Apple Park is an anachronism wrapped in glass, tucked into a neighborhood says Wired’s Adam Rodgers. However his main point is Apple’s new five billion dollar new headquarters is really just a memorial to Steve Jobs and his ego.

Dissecting a dying business model

The car industry is one sector in a perfect storm of disruption and Australia’s General Motors Holden is slashing its dealer network to deal with declining demand and technological change.

Notably in the story is what happens to the dealers when their contract with GMH is cut with the franchisees having to hand over tools, signage and manuals. It shows just how the corporation controlled its franchisees.

Where Vista went wrong

This blog has long maintained that Microsoft’s release of the Vista operating system was not only the biggest mistake the company ever made but also gave an opening for Apple, Google and Amazon to seize the computer market.

So a post from developer Terry Crowley a former Microsoft developer is an insight into how the process went wrong. His view on internal cultures for companies facing market disruption is telling.

“In fact, the more power you hold, the more accountable you need to be to open yourself to honest challenge on either facts or logic. This is even more critical in times of rapid change because the facts and consequential logic might change. Accountability and transparency means you are able to reassess your conclusions and react quickly.”

The Life and times of Jerry Brown

An excellent interview between US political commentator David Axelrod and California governor Jerry Brown ranges over topics from Ronald Reagan’s rise, today’s hostility to government and his Asian travels while in the political wilderness. It’s worth a listen.

Ditching the old tech – Lessons for the iPhone from the Apple iMac

Apple’s rumoured changes to the iPhone 7 are causing disquiet among customers, but they could mean opportunity.

“I’ve been betrayed, I’ll never buy another Apple product again!” was the cry in 1998 when the company announced their new range of iMacs and portables wouldn’t support the long standing Apple Development Bus (ADB) system and floppy disks.

At the time Apple had been in decline, only the year before Microsoft had bailed the company out with a few conditions that had deeply irritated the company’s loyal customer base.

Many of those customers – mainly in education and graphic design – had invested deeply in ADB compatible equipment and their irritation at abandoning that investment for USB based kit was understandable.

Today we’re seeing similar protests about the rumoured dropping headphone jacks from the upcoming Apple 7 device, customers aren’t happy about the possibility being forced from a well established standard to a less reliable and likely more expensive system.

Unlike the computer world of 1998 today’s marketplace is very different, Apple is no longer a quirky and niche product but the most profitable of the tech industry’s giants – as Microsoft was back when Steve Jobs swallowed his pride and accepted Bill Gates’ bailout.

However most of Apple’s profits come from one product line, the iPhone. While the iPhone is probably the only truly consistently profitable smartphone, it competes in a fiercely fought for consumer market.

Already in China, one of the company’s most profitable markets, the iPhone’s market share is falling in the face of good quality but slightly cheaper Chinese and Korean devices.

Should Apple push those consumers too far by shifting the iPhone to a more expensive or proprietary system then the competing Android devices may well pick up market share and dent Apple’s fat profits.

However history shows that these hardware shifts do happen and older technologies are supplanted by more expensive, but better, inventions regardless of how much users have spent on the status quo. A century ago the automobile started replacing a millenia of investment in horse drawn technologies.

In the case of Apple abandoning the ADB back in 1998, it was the spur to adopt the USB standard which up until then had been buggy and unwanted as Bill Gates himself had found.

As history shows, Apple thrived after ditching the old technology despite the complaints at the time and if the company resists the temptation to lock users into a proprietary system there is no reason to think the same can’t happen again.

Apple mouse (with ADB connector) courtesy of Wikipedia

Smartphones become a mature market

The smartphone market has matured, which brings a range of challenges for manufacturers.

As Apple celebrates shipping a billion iPhones, the smartphone industry has entered maturity reports IDC.

The analyst firm’s latest survey of the global smartphone industry reports only 0.3% growth over the equivalent period of last year.

While both Apple and Samsung have had successes over the past year with new models, IDC believes growth now lies in shifting ‘flagship products’ at lower price points with enhanced features.

A more mature industry opens opportunities for the cheaper Chinese brands and IDC is finding those companies are unsurprisingly proving successful in emerging markets. For the established brands redefining their price points and models is going to be the challenge.

That mature marketplace is going to focus the minds of product managers, marketers and executives at all the manufacturers as capturing profit and investors’ imaginations in a mature market is very different to that when selling a new, high growth product.

Lenovo and the hunt for profitable smartphone markets

Lenovo’s smartphone announcements are part of an industry desperately trying to find new profit centres and markets.

With Google’s Project Ara seemingly stalled, it was interesting to see Lenovo announce the Moto Z modular phone this week.

The question remains though whether this concept is a solution looking for a problem however if Lenovo open the device up to third party accessory makers, we could see a surge of innovation similar to the ‘plug compatible’ IBM days which may drive consumer interest.

Lenovo is still struggling to find its feet in the mobile phone market, so finding a compelling product to drive sales and improve margins in a largely unprofitable industry is a priority.

It may be the other smartphone announced by Lenovo in San Francisco, the clumsily named Phab 2 Pro, could be where the manufacturer finds its niche with Google’s Project Tango 3D sensing technologies.

The Phab 2 Pro’s 3D capability may be the beginning of accessible virtual and augmented reality systems however hands on reviews of the device indicate it may be some way from being ready for public release.

Lenovo’s announcements show how the smartphone markets is currently in a state of transition as vendors try to find the next new profit and growth centres. To complicate matters, all the Android manufacturers are waiting to see what Apple’s next move will be.

 

ABC Nightlife – Virtual Reality and Apple encryption

On ABC Nightlife tonight we’ll be discussing Virtual Reality and Apple’s encryption challenge

Pundits are saying 2016 will be the year Virtual Reality comes to the home, with Silicon Valley investors pouring money into the technology, the long awaited Oculus Rift due to be released this year and the heavily hyped Meta launching soon.

If you missed the show, you can hear it podcast through the Nightlife website.

Tonight on ABC Nightlife we’ll look at what VR, and its cousin Augmented Reality, are and what they mean to us ordinary people.  Some of the questions we’ll be looking at include;
  • Exactly what are Augmented and Virtual Reality?
  • Why all the hype now?
  • Why are investors putting so much money into the space?
  • Apart from games what can this tech be used for?
  • Do you always have to wear the funny glasses?
  • Does the headsets always need to be connected to a computer?
  • What are the devices and brands we should be watching out for?
  • Is it likely consumers will be able to afford this technology in the near future?
  • Will 2016 really be the year of virtual or augmented reality?

If we get time, we’ll also look at Apple’s fight with the FBI over encryption (security researcher Troy Hunt has an excellent run down of the issues at stake) and what happens if you change the date on your iPhone to 1970.

Join us

Tune in on your local ABC radio station from 10pm Australian Eastern Summer time or listen online at www.abc.net.au/nightlife.

We’d love to hear your views so join the conversation with your on-air questions, ideas or comments; phone in on 1300 800 222 within Australia or +61 2 8333 1000 from outside Australia.

You can SMS Nightlife’s talkback on 19922702, or through twitter to @paulwallbank using the #abcnightlife hashtag or visit the Nightlife Facebook page.

Apple opens the kimono

Apple’s new openness is part of a shift to a new business model

Something strange is happening at Apple, the once secretive company is now becoming far more open in its plans and relations with the media.

The latest example is the company inviting Sixty Minutes and Charlie Rose into its inner circles to interview CEO Tim Cook and go on tour of a future concept store with retail chief Angela Ahrendts.

Apple’s media friendliness marks a big change for the company that’s reflected in its markets as engaging with other partners becomes critical for future success. Successfully achieving this will mean another fundamental shift in the organisation’s management.

 

Smartwatches miss primetime

It appears the smartwatch market is stalling indicating the products were too early.

The US smartwatch market in not yet ready for prime time says Kantar Worldpanel finding most consumers are saying the devices are too expensive and don’t add enough value.

Kantar’s findings are underscored by Apple’s giving discounts to buyers of its smartwatch, something the company is certainly known for.

For all the hype, it appears the smartwatch may well have been the classic tech solution looking for a problem.

Apple CEO Tim Cook on Privacy and Profits

Apple CEO Tim Cook discusses privacy, profits and cars with NPR’s All Things Considered

“Privacy is a fundamental human right”. A short, but sweet and fascinating, NPR interview with Apple CEO Tim Cook.

Cook goes onto to avoid discussing the likelihood of Apple Cars and expounds the advantages of repatriating corporate profits back to the US, something we can expect cash rich companies like Apple to start agitating for after the next Presidential election.

The interview, which is only eight minutes long, is well worth a listen as Apple positions itself against competing internet giants Google and Facebook over the topic of privacy.

 

Apple in the mobile enterprise

Apple are defining the mobile computing world but not everyone is a winner.

“You wouldn’t say, let me go buy an enterprise car,” Apple Chief Executive Officer Tim Cook told Box CEO Aaron Levie at the BoxWorks conference in San Francisco this week . “You don’t get an enterprise pen to write with.”

Cook was talking about Apple’s position in the enterprise computing world, something conventional IT industry wisdom says isn’t the company’s strong point.

While this was true in the days of desktop computers and network servers, the arrival of the iPhone and iPad changed that. Suddenly Apple were driving business computing as staff from the Chairman of the Board down to the office junior started bringing in iOS devices.

Up until the iPad, the Bring Your Own Device discussion was a debate, once the tablet appeared any argument was over as all levels of businesses started bring their devices into the office.

One of the key arguments for using an iPad were the applications available and one of the most important applications in the early days was Evernote.

Sadly for Evernote, those early successes haven’t continued and now the company is being flagged as potentially the first billion dollar ‘tech unicorn’ to fail.

If Evernote does fail, it will show that even having a compelling product at the right time isn’t a guarantee for success.

Apple however is basking in its success and, as Cook points out, the shift to mobile is now defining business and his company is probably the best positioned to exploit that.

Pain for the PC industry continues

The latest PC industry sales estimates show the PC era is well and truly over

After good relatively results last quarter, the numbers have turned ugly again for the personal computer industry with both IDC and Gartner estimating the sector’s sales have collapsed by 11% and 9.5% respectively.

Of the PC manufacturers Taiwan’s Acer is the hardest hit with Gartner forecasting a 20% drop and IDC a whopping one-quarter compared to last year.

Apple were the only bright spot with Gartner expecting the company to sell 16% more PCs than the previous year.

Lenovo remain the biggest global supplier of personal computers but the company suffered a six percent drop.

While it appears the end of Windows XP support gave the sector a reprieve last year, the end of the PC era is well and truly here. The key aim now for vendors is to find a way to shore up their margins as the market shrinks – it’s a bad time to be commodity player.

Who will win the watch wars?

Traditional watchmakers are confident they can beat Apple

Our watches will outlast the Apple watch warns Montblanc’s CEO Alexander Schmiedt in an interview with Bloomberg.

Schmeidt is basing his view on his watches’ durability, “I don’t think that customers are going to be ecstatic to throw away watches in one to two years when the technology is obsolete.”

It’s a brave call and what Schmeidt’s views risk is that standard watches may become niches items. He could be right though and Apple’s watches might prove to be toys for technologist.

The market will decide.

A series of weak links

Security continues to be a challenge for Internet of Things vendors

One of the ongoing discussions in the world of the Internet of Things are the security weaknesses in many devices that leave networks vulnerable to rogue devices or malicious hackers.

A good example of this is Craig Hockenberry’s post on his Furbo.org site on how bugs in Apple’s Bonjour software messes with networks.

While Apple won’t say what causes this issue – an ominous point in itself – Hockenberry surmises it’s due to older software in some devices that no longer have updates available, which is another problem facing the IoT.

On top of Hockenberry’s story, a piece in Threat Post reports the Open Smart Grid Protocol has serious security issues.

The writers of the package that’s installed on more than four million smart meters and similar devices worldwide decided to write their own encryption algorithm that has proved easy to break.

So the smart home which might feature both a slew of Apple devices and one of these exposed smart meters has a range of security holes that the occupier has no idea about. This hardly breeds confidence.

As the Internet of Things is rolled out, security is going to have to be at the front of developers’ and vendors’ minds. The stakes are too high for shoddy and ill thought out compromises or for vendors like Apple who rate secrecy over their customers’ security.