>>> Apple has proved the closed case from a value perspective.
Really?
They've basically had to "open" the Mac platform to gain any traction and now we have people whining on this very thread, insisting on better connectivity with other platforms (there seems to be a bit of confusion over who caused the problems in the first place). The company very well MIGHT have gone broke while pursuing this policy of incompatibility. And I can tell you, right now, without compatibility of MSFT Office files, the Mac platform would be NOWHERE today.
The iPod is still closed and probably always will be because they were able to dominate the market. Although, I wouldn't rule out the possibility that competing cell phones could some day grab back some of that market.
The iPhone is closed and Droids showing up after the fact took a significant portion of the market away from them. Now we hear talk of less than expected demand at Verizon, a huge distributor of droids. If the Verizon sales turn out to be weaker than expected, what do you think that will do to the "value" of Apple stock?
The iPad is closed and they're trying to tighten the grip in the midst of serious competition. Samsung shipped a million units in two months before spending a nickel on advertising. I might point out that Samsung's margins on these devices are at least as good as Apple's on the iPad (maybe better). They're not just picking up scraps. They are nipping at AAPL's heels.
If one compares the Galaxy with the iPad, the Galaxy is actually pretty far ahead of the iPad technically. One popular review put it like this:
"In terms of software, the Galaxy Tab's Android 2.2 operating system gives the device a number of selling points Apple's iPad can't claim, including full-featured multitasking, support for Adobe Flash, and unrestricted access to applications (Apple is notorious for censoring all sorts of material -- ranging from political satire to swimsuit-clad women -- and also for banning apps that provide functions such as free tethering and customization of the operating system). "
PC World goes on to hammer home the issue --
"App support. Apple's App Store may have a larger selection than the Android Market, but Android's open ecosystem allows you to install anything you want -- no Jobsian approval required. That means there's no censorship of things like political satire, celebrity cartoons, or even porn (remember, by Steve's definition, "porn" can include images of women in swimsuits). And no, that doesn't mean you're suddenly at risk for all sorts of unthinkable viruses."
Maybe a bit over the top, but you get the point.
The first edition of Galaxy had not one but two cameras, expandable memory, tethering, flash, multitasking and a host of other features the iPad lacks. Perhaps most importantly, the ability to plug the damned thing into my PC and copy files to it on an unrestricted basis.
Of course, there are two sides to the story -- nobody ever got fired for buying an iPad, I guess. But it is not a foregone conclusion that AAPL can overcome the competition in the iPad space, and the closed system is one of the key issues they face.
As Apple continues down this self-destructive path of trying to dictate to users what they can and cannot do with the devices they purchase, they are going to drive away customers, and I'm not sure they can make enough money out of the Store to offset the losses. |
