Wednesday, July 30, 2008

MAC to Apples PC (Part 1 Why Apple is PC)

Who is going to be MAC to Apples PC in the portables business?  Yea its hard to get your brain around but it that is why Apple has spent so much time and effort courting the development community.  They want to be the guy that everyone says “I know (Fill in the Blank) is a great phone but All the useful applications are on the iPhone” about.  Apple wants the power of the “Network Externality”  They have aimed their considerable marketing arsenal at all of us and told us in every way possible that we want an iPhone that having an iphone and the internet in your pocket is indispensable.  IF I say IF Apple can succeed in getting 50-100 million of these things out there AND IF one (OR several) of these developers actually create something that works really well then ….  Then … Everyone will have to use an iPhone because it is then that the Network Externality says you will have to.  Just like when you didn’t buy a mac in 1999 it was because they sucked Outlook (or some other program) only ran on a Microsoft PC.  Apple currently has as much as 25% of the US smartphone market share.  Their share of this market and the size of the market are going to grow explosively over the next few years.  Think about it… Think ahead to the time you will be able to pick up a version of the  iPhone for $50 bucks at the mall kiosk.  There are other phones and they will gain in functionality but really who would not buy the phone that has 1046 (as of this morning) programs you can download?  Apple is going to be one of the dominant players in the smartphone business and Apple is PC because they will define the smart phone market for the next 10 years.

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