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2015

by on April 30, 2010
Charlie Stross has an interesting article he titles “The Real Reason Steve Jobs Hates Flash”, though it’s more about the rapid changing PC computing sector and Apple’s vision to stay ahead. Here are some interesting parts of his article…

“I’ve got a theory, and it’s this: Steve Jobs believes he’s gambling Apple’s future — the future of a corporation with a market cap well over US $200Bn — on an all-or-nothing push into a new market.”

“here’s Steve Jobs’ strategic dilemma in a nutshell: the PC industry as we have known it for a third of a century is beginning to die. PCs are becoming commodity items. The price of PCs and laptops is falling by about 50% per decade in real terms, despite performance simultaneously rising in real terms. The profit margin on a typical netbook or desktop PC is under 10%.”

“My take on the iPhone OS, and the iPad, isn’t just that they’re the start of a whole new range of Apple computers that have a user interface as radically different from their predecessors as the original Macintosh was from previous command-line PCs. Rather, they’re a hugely ambitious attempt to keep Apple relevant to the future of computing, once Moore’s law tapers off and the personal computer industry craters and turns into a profitability wasteland.”

“Operating system, hardware platform, and apps define an ecosystem. Apple are trying desperately to force the growth of a new ecosystem — one that rivals the 26-year-old Macintosh environment — to maturity in five years flat. That’s the time scale in which they expect the cloud computing revolution to flatten the existing PC industry. Unless they can turn themselves into an entirely different kind of corporation by 2015 Apple is doomed to the same irrelevance as the rest of the PC industry — interchangable suppliers of commodity equipment assembled on a shoestring budget with negligable profit.”

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