Why Apple Is Overvalued And Destined For Hard Times

Yes, we love Apple and their products...but they are still thinking "local" and it is going to cost them dearly.

From the ability to carry around all of our music IN the iPod to the neat way of running applications ON our phone, Apple has clearly nailed this strategy...

However, this is their downfall.

Content and computing are shifting from being ON the device to IN the cloud and when your business depends on selling high end consumer devices, that is going to be a very big problem going forward.

Adding a camera was a pretty big step for the mobile phone. Then the creation of the app store and all of the wonderful things you could now do with a phone, was a boom for many people/industries.

Where are we going?

It is called cloud computing because the computing is done on the cloud, not the device. The applications and content will be accessed and run in the cloud and not on the device.

So when you're selling a phone for $800, when YOUR COST is $200, but the true cost of just the hardware is $25, that's a very problem for your business.

Apple, and others, should look very closely at Google and their Chromebook to see where the future is headed. The number one selling laptop isn't a laptop at all, it's simply a connection to the cloud.

Indeed Microsoft sees the future and thinks it can give the Chromebook a run for its money with the recently announced partnership with Qualcomm

The next "must have" mobile phone will be a "cloud phone", or something very similar to Chromebook capability in a mobile phone size. A simple device, costing under $100 that just accesses the cloud for your content and applications. You drop it or it gets stolen, no big deal. The battery life will be days now that unnecessary applications dont need to be running constantly. The bandwidth used will shrink (telecoms will love).

I can have access to IBM's Watson and high powered graphics, there is NO point in keeping the computing on the device any more.

The days of different app stores will be a thing of the past and Apple's iTunes gold mine will end fast. Why do I need to download the Facebook app from several stores for different devices? App stores are just glorified browsers and who pays for those?

In 2007 I discussed how Apple could introduce an iTunes browser and become an ecommerce powerhouse, Amazon beat them to it.

In 2010, I stated how Apple could turn their iTunes into the "killer platform" and be a cloud pioneer, but they sacrificed future for device revenue.

The shift from websites to apps that run websites fragmented many industries..that all changes. One app that runs on all devices. Period.

Kodak didn't see the shift from analog to digital. Apple isn't seeing the shift from local to the cloud.

Apple Kills Headphone Jack But Fails To See Real Trend

Hey Apple,

The future of audio may be wireless, but the future of computing is on the cloud, not the device.

Apple's decision to remove the headphone jack, "diminutive legacy port", in new iPhone is definitely a  step ahead of the crowd and will force even more sales to another new consumer Apple product (Lightning Ear Pods and adapter).


Apple is arguing that the future of audio is wireless, that the world’s current assumptions about mobile audio are not only antiquated, but worthy of immediate abandonment.

 
But right now that future comes with a price: You’ve got to leave behind the perfectly good headphones you own and you’ve got to purchase the new wireless ones as an iPhone accessory.

Don't get me wrong, Apple makes great products but they are behind the curve when it comes to the future of computing. The rapid sales growth of the Chromebook is showing us, the cloud computing shift is already taking place.
 
When the functions on the device (Siri, pinch zoom, camera etc) can be used with the computing power (and content) from the cloud, your disruption takes place. The operating system will be the cloud, not on the device..so what will the new iPhone or Samsung Note really be?..just some metal and glass. I dont think you will see many consumers paying $700 for some metal and plastic.

I dont see consumers paying $700 for that.

Microsoft's New "Chromebook Killer"...What I Would Do

For a couple years the world's largest software company was pointing out faults in its rival Google’s policies with a campaign called Scroogled.

 

When Nadella starting running this campaign. Apparently the guys at Google know where the future is heading which might be why Microsoft changes their motto from "be what's next" (huh?) to "mobile first- cloud first".

Google's Chromebook, which was once considered a joke because it only worked if there was an Internet connection, is now becoming a serious contender in the low end cloud computing device, especially with the next generation of computing users (kids) are being raised on them.

So we learn that Microsoft has introduced a product to compete with Google, excuse me, kill the Chromebook called the ASUS X205. Yes that's right there will be people lined up outside Best Buy the buy the new ASUS X205.

If Microsoft really wants to penetrate and ultimately dominate the low end market, they need to give this device a name. It all starts with branding, and brand names sell, not SKUs. When you're selling a very high end item you can get away with just the brand (Ferrari, Lamborghini, Rolex etc) but when you're selling a low end item you better find a way to make yours different.

 

Here's my idea. These devices are all dependent on the cloud for computing right? What is the quickest connection from the cloud to the ground?..a lightning bolt.

Microsoft could brand it the LiteNing Book, FlashBook or the BoltBook...or they could just keep the name ASUS X205.

Google's ChromeBook...The End of the PC?

When Google launches their Chromebook it will disrupt the personal computing industry.

Why would anyone need a PC? You wont.

All of your data and computing will be on the "cloud", not on the PC. It will have NO programs, everything will be web based.

Do you know which industries and products will now face extinction when this device is introduced?

(Update Sept '11)
Coming soon..the end of the media player too. The company with the "playerless patent application" has some media players concerned.


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