Apple to Split into Apple Computer & Apple Electronics

by James R. Stoup Mar 24, 2006

Remember back when the US government tried to split Microsoft apart? They wanted the company to be divided (at the very least) into two separate entities. One that produced an operating system and another that produced applications that would run on that OS. Unfortunately for all that didn’t happen, but for a while there it didn’t look good for Gates & company. Ultimately the government caved and the public never got to experience the software that such a breakup could have effected.

Fast forward to the here and now. I am about to propose that a major player in the computer market split apart, and amazingly enough, it isn’t Microsoft, it is Apple. Yes, Apple computer, maker of the Mac, the iPod and other such wonderful products. Apple, who is currently riding high atop record setting sales. Apple, innovator supreme. Yes, that Apple. It needs to be broken up, and sooner rather than later.

Now, I don’t think it should be split apart along a hardware/software line. That wouldn’t do anyone any good. And this split has nothing to do with licensing OS X or authorizing clones to be built. Rather this split should separate Apple’s computer business from it’s consumer electronic business.

Note: I didn’t say Apple’s iPod business or its media business, because those two things are just pieces of a bigger picture. Do you know what Apple actually sells? I mean, what they really and truly sell? It isn’t computers. It isn’t software. And it most certainly isn’t MP3 players. No, those are just the components most people notice first. What they really sell is an experience. They package up the whole deal and from start to finish they are there, and they make sure everything goes smoothly.

Welcome to the new digital age. This is the time when features aren’t as important as usability. This simple truth has been proven by the iPod’s continuing dominance in its field. Steve Jobs knows this. He also knows that the key to Apple’s success in the future is to ride this trend as far as it will go. And to do that he is going to have to concentrate all his energy on one of two projects, Apple’s computers or Apple’s electronics. My bet is that he will choose the latter.

I think that in the next two years Jobs will put Jonathan Ive in charge of Apple’s computer business so that he can focus his energies on turning Apple Electronics into the premier personal electronics supplier. The iPod is just the tip of the spear. Imagine Jobs churning out every device needed to truly connect the digital home. Apple Electronics can be what Sony should have been had they remained innovative. Give it time and Jobs will allow you to buy any type of media you desire and use it on a custom Apple device, elegantly designed, expertly made and wildly popular.

Give it time and you will see, Apple is destined to become two companies.

Comments

  • Only suggesting that the appearance of impropriety warrants at least a skeptical look at what companies do and that not everything is defensible. -Beeblebrox

    I wouldn’t mind some legal mind looking into this - I’m just saying I doubt it would go anywhere. The only thing I oppose on principle is antitrust lawsuits, but we don’t need to go into that again.

    Oskar had this to say on Mar 26, 2006 Posts: 86
  • I think we’ve reached an impasse, or at least an end to this line of discussion.

    One of the better ones, I might add.  Salut, Oskar.

    Beeblebrox had this to say on Mar 26, 2006 Posts: 2220
  • Dude, you’re a *****in’ moron.  Go get a real job in technology and study some brand strategy.  Your proposition is nothing short of pure comedy.

    buganamo had this to say on Mar 26, 2006 Posts: 3
  • One of the better ones, I might add.  Salut, Oskar. -Beeblebrox

    Thanx grin

    Dude, you’re a fuckin’ moron. -buganamo

    Not sure who you’re talking to, but duly ignored.

    Oskar had this to say on Mar 26, 2006 Posts: 86
  • BTW. just so you know that the concise nature of my previous comment was not that of some fearful, hurt mac zealot that can’t deal with your prediction, but rather my view is founded in pure logic.  Consider this:

    We (mankind) are on the verge of selling clothing whose very washable fabric will literally be display technology, in fact, we already have said technology (google “LEP” for light emitting polymers).  Your shirt downloads streaming HD video to play on it’s own fabric.  No, LEP’s were not made strictly for this, but, well… fine doubt me.  What I just said is light years more plausible than your prediction.

    See also: OnStar.
    See also: LeapFrog learning technologies.
    See also: Microwaves that tell you to enjoy your meal.
    See also: Cell-phones that run Java3D off nVidia chips.

    That said, tell me: WTF is the difference between new technology/consumer-elec’s and computers?

    NOTHING.  NOT A GOD-DAMN THING.  Oops, you’re a dumbass.

    Honestly, I’d usually take more time to debate, but it wouldn’t do any good.  The more you write, the more your site gets lumped into that category of “damn, you really CAN find all kinds of stupid bullshit on the internet.”

    buganamo had this to say on Mar 26, 2006 Posts: 3
  • buganamo, I believe posting while on crack is against the TOS of this site. I’ll have to check it out but I’m almost positive.

    P.S. Microwaves that tell you to enjoy your meal?? WTF?

    Oskar had this to say on Mar 26, 2006 Posts: 86
  • While I do appreciate all of the comments this post has received I fear we might be straying off topic a bit. So, in an effort to resolve things peaceable, if everyone could take a breath, step back from the situation and post their final thoughts on this matter that would be just great. No need to get terribly bent out of shape and form a deep hatred of your fellow readers. Thank you once again for your comments but from here on out, do try and keep things civil please. Thank you.

    James R. Stoup had this to say on Mar 27, 2006 Posts: 122
  • Beeblebrox said: ”...that Apple license their DRM to competitors so that we can ... use other major music stores with our iPods.”

    If Apple opened their DRM up, that isn’t what would happen.

    Luke Mildenhall-Ward had this to say on Mar 27, 2006 Posts: 299
  • If Apple opened their DRM up, that isn’t what would happen.

    And please, pray tell, tell us what WOULD happen.

    Beeblebrox had this to say on Mar 27, 2006 Posts: 2220
  • I just think the iTMS is actually pretty irrelevant - I don’t think it’s a big factor in maintaining the quasi-monopolistic success of the iPod.

    That is, I suggest that the major reasons for the success of the iPod relate to:
    1. Branding
    2. Overall quality
    3. Its ease of use (including leaving out useless features judiciously)
    4. iTunes (the software) - the best jukebox software out there for most people, and seamless integration with the iPod.
    5. The fact that the competition is relatively lacking in the above areas.

    Most importantly though, the iPod’s success is due to its FAME.

    If you take this point of view, the above points are important because they suggest that whether or not Apple were to open their DRM, the iPod would retain its astronomical marketshare. The moral question of whether it is *right* to sell music *at all* that can only be played on this single platform to me is simple: the answer is no. But in the light of the above, it is also rather irrelevant at this juncture.

    If you don’t take this point of view…
    ...well, you’re wrong raspberry

    Benji had this to say on Mar 27, 2006 Posts: 927
  • If you take this point of view, the above points are important because they suggest that whether or not Apple were to open their DRM, the iPod would retain its astronomical marketshare.

    If that’s true, then why won’t Apple open up their DRM?  And this isn’t some academic question.  They are so outrightly refusing that they’ve threatened to pull out of the entire French market if forced to share Fairplay.

    In light of this very real fact, what you’re saying is basically theoretical nonsense.

    Beeblebrox had this to say on Mar 27, 2006 Posts: 2220
  • In the light of the fact that a corporation can’t see the wood for the trees, my attempts to do so are null and void?

    Benji had this to say on Mar 27, 2006 Posts: 927
  • This message was originally a piece of spam kindly posted by some jerk whom we will soon be banning.

    If you like, you can join with me in praying that he is run over by a bus.

    johnson02 had this to say on Mar 27, 2006 Posts: 1
  • I see what you’re saying Ben.  I guess I don’t really see the relevance.  I suppose one could argue that Apple is engaging in unfair competition even if they don’t benefit from that unfair competition, but they are still engaging in unfair competition.  The real question is why, and is it right for them to do so?

    I could cheat on an exam, for example, even though I know all the answers anyway and don’t really benefit from doing so.  But that doesn’t mean I’m not cheating.  And if I still insist on cheating, even while arguing that I know all the answers, critics have just reason to wonder why I still insist on cheating.

    Beeblebrox had this to say on Mar 27, 2006 Posts: 2220
  • Yes: we agree that it’s not right for a music store to close you into a particular system.

    The situation seems to be that the rest of the world hasn’t quite managed to decide that yet (for instance, the US govt jumped to apple’s side when they accused france of pro-piracy legislation when france were considering trying to force them to open up).

    Benji had this to say on Mar 27, 2006 Posts: 927
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