Linked by Thom Holwerda on Mon 22nd Jan 2007 16:58 UTC, submitted by alcibiades
Apple "The lines between the Mac OS and Windows are starting to blur. And that portends major changes going forward in the world of PCs. At last week's MacWorld, a little company called Parallels won awards for the latest version of its hit product, which enables you to run both operating systems at the same time on a Macintosh. It's a major breakthrough."
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RE[3]: Help me out here.
by Thom_Holwerda on Mon 22nd Jan 2007 19:47 UTC in reply to "RE[2]: Help me out here."
Thom_Holwerda
Member since:
2005-06-29

There's a reason companies like BMW and Mercedes don't sell budget-priced economy cars, despite the fact that people would no doubt buy them.

That comparison would be valid if not for the fact that a BMW is different from a Renault not only on the outside, but also on the inside. Your comparison would make sense if BMW just put different bodies on existing Renault or whatever platforms and engines; instead, BMW develops everything in-house, and builds everything in-house.

Apple is a regular PC maker, using the exact same components as Dell and HP, but only with a different exterior and operating system. Apple does not make computers, they let Taiwanese companies do that for them - the same companies that build computers for Acer or Asus.

This bears not even the slightest bit of resemblance to the automotive market.

Reply Parent Score: 1

RE[4]: Help me out here.
by wirespot on Mon 22nd Jan 2007 20:54 in reply to "RE[3]: Help me out here."
wirespot Member since:
2006-06-21

Come on, you know what he meant. Apple puts a lot of effort into a close to perfect integrated experience. This mean all the software working smoothly and looking good, all the hardware working smoothly and looking good, and the hardware matching the software and the other way around, with a real sense of style.

Theoretically Dell or any other PC maker could to do the same. In practice, they'd have to work with Microsoft and pick only select components, which would jeopardize their hardware relations and, frankly, Windows is not the same as an OS designed for this specific purpose.

Reply Parent Score: 4

RE[4]: Help me out here.
by looncraz on Mon 22nd Jan 2007 20:57 in reply to "RE[3]: Help me out here."
looncraz Member since:
2005-07-24

While car companies like Porsche, Volvo ( still, yes ), BMW and the ultra-elites design their cars and the interactions of all the systems in the car, the parts all almost always out-sourced.

VDO provides dash guages to VW ( Porsche and family ), Volvo, and I am sure SAAB as well, amongst many others.

Bosch provides ABS systems.

And so on.

Makers of the products are used to mass-fabricating a general solution, which adapts well to use in most cases. A car model may require a flatter alternator housing, so changes are made to the generic solution ( at a cost to the car maker ) to provide the actual solution.

Few companies develop all the components they use ( in any industry ). Even wood carvings are usually done on
wood from a tree someone else cut down.

Apple's hardware is made FOR THEM, with some special changes obviously made to them ( within the bounds of the components available for design and their budget for the model ). The changes may mostly be in shape, but they also must dictate which components to be included, such as how the system board's memory voltage is handled, or how the board initializes itself and the operating system.

This makes Apple similar to BMW / Mercedes / et al, but not comparable ( anymore ) to Ferrari or Lamborghini.

--The loon

Reply Parent Score: 5

RE[4]: Help me out here.
by elsewhere on Mon 22nd Jan 2007 21:58 in reply to "RE[3]: Help me out here."
elsewhere Member since:
2005-07-13

That comparison would be valid if not for the fact that a BMW is different from a Renault not only on the outside, but also on the inside. Your comparison would make sense if BMW just put different bodies on existing Renault or whatever platforms and engines; instead, BMW develops everything in-house, and builds everything in-house.

Apple is a regular PC maker, using the exact same components as Dell and HP, but only with a different exterior and operating system. Apple does not make computers, they let Taiwanese companies do that for them - the same companies that build computers for Acer or Asus.

This bears not even the slightest bit of resemblance to the automotive market.


You're missing my point, but reinforcing it at the same time.

BMW does, in fact, outsource. The BMW X3 was partially engineered and is entirely produced by an OEM manufacturer (Magna Steyr). But you don't find that in the advertising brochures. Just as with Apple, BMW focused on investing internally in engineering resources and outsourcing that which could be done more efficiently (and hence more profitably) by an external organization.

Nor will you find Apple extolling the virtues of outsourcing engineering, component selection and manufacturing to the same companies that produce those run-of-the-mill HP and Dell PC's everybody likes to make fun of.

Apple doesn't sell a PC and an OS any more than BMW sells a car with four wheels and an engine. They both sell an experience, in Apple's case it's the ultimate user experience, in BMW's it's the "Ultimate Driving Machine". Both are the result of a carefully controlled effort to enhance positive customer perceptions and market the brand rather than the product.

But the point I was making was with regards to that brand value. You made the assumption that BMW has teams of engineers and manufacturers in a big facility working tirelessly to make their products under controleld conditions, and that is precisely the perception they want you to have. BMW is all about engineering and quality, right? So branding mission accomplished.

Apple is similarly a brand driven company. People are fiercely loyal to that brand; look at the way people often gush about OSX: "It just works" "It's all about integration" "It's easy to use" "It's more sophisticated than Windows". These are perceptions, not empirical measures, but they are relevant none the less. People love their Macs because they feel they have something that is better than alternatives. And they get incredibly defensive when others try to measure Mac+OSX empirically against alternatives or competitive offerings. You can't measure "experience". Dell+OSX would unquestionably dilute the brand value of Mac+OSX by emphasizing that Macs really aren't that different than other PCs and OSX is really just another OS. The sum of Mac+OSX is greater than the combined sums of Mac and OSX.

So sure, Apple could OEM OSX to other PC manufacturers, but in doing so Apple would lose the control that goes into maintaining that brand value. They would effectively risk diluting their single greatest asset for a questionable return, when their current model and strategy is working so successfully already. Businesses with the type of brand assets that Apple has developed protect those brands at all costs.

Certainly, stranger things have happened, but I simply cannot see Apple ever OEMing OSX, it just would not make business sense given their current position. That's a move that will be pulled only as a last-ditch survival tactic if Apple ever finds themselves in the same precarious position they were before Jobs returned. Because once they've done that there is likely no going back.

Reply Parent Score: 5

RE[5]: Help me out here.
by zerohalo on Mon 22nd Jan 2007 23:04 in reply to "RE[4]: Help me out here."
zerohalo Member since:
2005-07-26

You can't measure "experience". Dell+OSX would unquestionably dilute the brand value of Mac+OSX by emphasizing that Macs really aren't that different than other PCs and OSX is really just another OS. The sum of Mac+OSX is greater than the combined sums of Mac and OSX.

Well put, and one of the mean reasons why I believe Apple will retain control rather than license. And if it did license to anyone, it wouldn't be Dell. Maybe Sony, who also makes athestically pleasing PCs and in some ways could be called the Apple of the Windows world. Plus Sony has lots of media content (which is also something Apple has via Job's connections). An Apple-Sony partnership would be interesting indeed. Not that I think it's likely to happen or anything--I haven't given it much thought but there are probably lots of reasons why it would be a bad idea or would never happen.

Reply Parent Score: 2

RE[4]: Help me out here.
by adkilla on Tue 23rd Jan 2007 02:38 in reply to "RE[3]: Help me out here."
adkilla Member since:
2005-07-07

That comparison would be valid if not for the fact that a BMW is different from a Renault not only on the outside, but also on the inside. Your comparison would make sense if BMW just put different bodies on existing Renault or whatever platforms and engines; instead, BMW develops everything in-house, and builds everything in-house.

BMW does not develop everything in-house. For example the breaks are OEM from Brambo. The same goes for the air-conditioner and radiator.

So the market analogy of Apple and BMW still applies.

Reply Parent Score: 1

RE[5]: Help me out here.
by dukes on Wed 24th Jan 2007 06:44 in reply to "RE[4]: Help me out here."
dukes Member since:
2005-07-06

Since the letter A is not close enough to the letter E to fat finger it, I must reply to this one.

It's Brembo NOT Brambo. That's a heck of a mistype if you ask me. ;)

Reply Parent Score: 1