Apple News, Analysis and Podcasts

Apple TV has landed, and evidently it is seeing strong sales. For now, the iOS platform has sprinted ahead of the phone-only based Android OS, and build a strong firewall to fend off future competition. But Apple's hardware competitors have no concern with the iOS itself, as they use whatever they get (Android, Microsoft something, etc...). Companies like Sony and Panasonic, their worries revolve around the question of price. Can these manufacturers price their product to sell -- and make money -- against Apple's offerings?

The short answer is no, but let's take a look at why. Hardware makers are likely to be very concerned with Apple's numbers:

• iPod touch: Apple sells roughly 3.5 million per quarter.
• iPhone: For 2011, peg sales around 12 million per quarter.
• iPad: Sales are moving north, towards 6 million per quarter for 2011.
• Apple TV: One million per quarter now, and with more content (apps, live TV anyone?) forthcoming, assume 2 million per quarter in 2011

Apple is likely to sell 90 - 100 million iOS hardware units in 2011. The economies of scale for Apple's iOS hardware platform is staggering, nothing out there comes close.

PC vendors success has come via a price and specifications game. But Apple is pushing competitive hardware makers into a position they have not had to play against Apple - selling value -- and that's not a position they understand, nor are they likely to win.

The price rumblings for Logitech's Google TV box are coming in around $299. Sorry, but that simply isn't going to work, nor is bundling Google TV on over-priced Blu-Ray players (never mind the confusing marketing message it sends to consumers).

Hardware makers are all struggling to get out tablets that can compete spec to spec with Apple's 9.7" iPad and then best it on price. To-date, vaporware is all we have from Apple's competition. The tablets we know of are going to sell via carrier-only models, stuffing their true prices in contracts, for 7" devices no less... Hiding tablet pricing in carrier contracts does not make for mass market adoption, or aid in competing against Apple in any true sense.

iPod touch is another example of Apple's economies of scale juggernaut. The competition? Blown away with the great dust bowl of 1887...

If you're not getting it yet, Apple's unleashed a monster of purchasing power unequaled in the tech industry. Who is likely to compete any time soon? No one.

0 Comments

Leave your reply