Linked by Eugenia Loli-Queru on Tue 24th Jun 2003 15:32 UTC
I was present at Apple's WWDC yesterday and witnessed one of the historical moments in Apple's history, the introduction of their 64-bit platform. Am I impressed? The answer is complicated. I was happy to see Apple moving on and deliver. But I would have expected nothing less from a 4 billion tech company who had the need to catch up with the "other" platform, the 32-bit PC. You all heard by now what's new in yesterday's press releases and news coverings. But here is a wrap up of the first day of the conference and a commentary on what Apple really announced yesterday, underneath its surrounding distortion field.
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I think the key to understanding Apple is to understand that they are further diverging from the market as a whole. Their showpiece systems lead them away from the center of the market, again.
If you look at Clayton Christensen's "Innovator's Dilemma" you'll see some graphs that put it in sharp perspective. When faced with a too-competetive technology, existing suppliers may retreat "up market". They expand their functionality in the ways important to existing users, and raise their prices.
That strategy does give them longer life, and help the short term bottom line, but it doesn't fix the basic problem. They cannot touch the price performance of the newer (and more mass-market) competition.