[edge.it]

im working on this school assignment, and im just looking for some insight if anyone has any, to some up and coming issue apple will be facing. the loss of steve jobs, its future battle against the PC world. etc etc..

any advice will be GREATLY appreicated

[design219]

Interesting topic. I'll look forward to seeing what everyone speculates.

I think Jobs will be around for a long time, but that would sure be an issue, if not in actual operation of the company, at least from a confidence viewpoint.

[olePigeon]

This may be an immediate concern, but it could be a permanent shift: the state of the economy. If people don't have as much money or are making less, Apple could be in trouble trying to compete with $350 Dells.

[osiris]

I have to agree with olePigeon. And I also believe that Apple is overpricing themselves out of more market share, particularly in this economy (which I believe will worsen through the end of 2010).

I'm not saying there should be a $350 Mac, but at least a $400 one.

As for Steve... well, that's a tough one, and purely opinion...

The good side: innovative cool-looking things from a brilliant mind

The bad: lots of innovation in personal consumer electronics (toys), not desktops.
One man's pride over-powers practicality for some: why would Apple's multi-button mouse have both left and right buttons defaulted to two left clicks, rather than a left and a right click. Things like that.

[Mrjinglesusa]

Apple's biggest problem in the near future is what to do with the over $20 billion they have sitting in the bank. That's a lot of cash to have on the balance sheets. In fact, if I recall correctly over 60% of their total assets is cash.

[lexapro]

That a lot o'cash.

[Maflynn]

Interesting thread to be sure, as I see it, I think apple has a number of challenges ahead.
First and foremost is the ipod: While clearly the iPod is king, its time on the top is finite. At some point the iPod's popularity will start sagging and what will apple to do keep the design fresh.

Innovation: Apple has been great at this for a number of years, that cannot sit on their laurels, there's too much competition, too little consumer dollars and too much at stake.

Replacing Steve Jobs, I hate to say it but at some point they need to have the leadership in place when he steps aside. His medical leave should be a wake up call. While he's not old, he has dealt with health problems in the past he in past and present. Clearly they need to have the right people ready to lead Apple into the next chapter, either shortly, or after many more years down the road (which is everyone's hope, i.e., His Stevieness is in command for many many years).

[Andy8]

Originally Posted by Mrjinglesusa 

Apple's biggest problem in the near future is what to do with the over $20 billion they have sitting in the bank. That's a lot of cash to have on the balance sheets. In fact, if I recall correctly over 60% of their total assets is cash.

They could buy back shares.

[design219]

Originally Posted by Maflynn 

At some point the iPod's popularity will start sagging and what will apple to do keep the design fresh.

How long will it be until the iPhone has a iSight camera that will be a true, real time video phone? Dick Tracy stuff.

[mattyb]

Not just Apple, but anyone with a Unix type OS will have to figure out how to solve the Unix Clock overflow prob in 2038.

[Mrjinglesusa]

Originally Posted by Andy8 

They could buy back shares.

That, or they could offer a special one-time dividend. Neither is going to happen. Apple likes to have their cash available to acquisitions.

[Kerrigan]

The biggest problem will come when Steve leaves. Anyone who remembers the 90s knows that Apple, as a company, has a tendency to make quirky and unpopular products. Jobs is able to keep this tendency in check and he also is a genius at recognizing future product trends.

You can see already how things go at Apple when Jobs is not around: the new Shuffle may be "creative" in some sense, but it is confusing and inelegant. The same can be said for the new Safari, which is crap. And Apple is already trying to move to the "Marble" interface which will essentially be Platinum redux. Without Jobs, Apple just doesn't have what it takes in the long run. (But of course the fanbois will believe the carefully fabricated notion that Jobs doesn't matter)

[scaught]

Didn't I read somewhere that apple just had a kick ass first quarter?

[besson3c]

Apple's biggest threat is probably the same with any IT company: potential missed opportunity or miscalculation of the direction the industry is moving towards.

Right now they seem to be in a good position all-round, but this could change in the future (as it could for any company). Right now, I think they are missing out on the virtualization boat on the server end of things which may jeopardize this market for them. However, Apple's server business is obviously not their cash cow, so they will definitely survive this. If they make the same sort of mistake in another space though, hypothetically speaking, this is the sort of thing that will endanger the company.

[besson3c]

You could also add that their biggest threat is losing focus of their core business. However, again, this is also a threat for not only any IT company, but any company period.

[Tiresias]

Two words: The Zune.

Oh wait....

[jokell82]

Originally Posted by Kerrigan 

The biggest problem will come when Steve leaves. Anyone who remembers the 90s knows that Apple, as a company, has a tendency to make quirky and unpopular products. Jobs is able to keep this tendency in check and he also is a genius at recognizing future product trends.

You can see already how things go at Apple when Jobs is not around: the new Shuffle may be "creative" in some sense, but it is confusing and inelegant. The same can be said for the new Safari, which is crap. And Apple is already trying to move to the "Marble" interface which will essentially be Platinum redux. Without Jobs, Apple just doesn't have what it takes in the long run. (But of course the fanbois will believe the carefully fabricated notion that Jobs doesn't matter)

You really think the Shuffle and Safari 4 came about with no input from Jobs???

[Kerrigan]

I really doubt Jobs put as much input into their development as he did with the previous versions, seeing as how he is ill and working from home and probably devoting what energy he has to more important projects like the iPhone.

[ghporter]

Just what IS Steve's role in designing products, anyway? Considering how complex any tech product is, I can't believe that ANY executive has more than a passing acquaintance with the guts of their products. I can see clearing a design innovation, like the unibody laptops or the tiniest of tiny Shuffles, but how much CAN Steve do about new designs.

And frankly, is Apple JUST Steve Jobs? He's been a powerhouse, no doubt, and he's apparently pushed innovation and design creativity, but has HE, HIMSELF been the source of much in these areas?

[Kerrigan]

Every good executive knows when and how to balance details with vision, and great executives are extremely talented at doing this (like Jobs). Jobs has been exceptionally good in this regard, and it is amazing how people are throwing him under the bus in order to buy into the idea, drummed into our heads in order to make sure that AAPL doesn't tank, that Jobs is replaceable. You can't build up a company around a personality and then expect it to continue to thrive after you kick out the personality. Apple slipped into irrelevance after kicking Jobs out during the 90s, and there is very good reason to expect that to happen again when Jobs leaves.

[OreoCookie]

Originally Posted by ghporter 

Just what IS Steve's role in designing products, anyway? Considering how complex any tech product is, I can't believe that ANY executive has more than a passing acquaintance with the guts of their products. I can see clearing a design innovation, like the unibody laptops or the tiniest of tiny Shuffles, but how much CAN Steve do about new designs.

I've heard a few stories. Steve is very anal about some things. For example, a friend of mine who spent some time in Cupertino is an audio specialist. There was a bug in it so that it could make popping sounds when adding audio tracks that was very complex to solve. Steve somehow noticed it (I certainly haven't) and so did my friend. He fixed it (which took a long time, it was a complex issue).

He can make certain `that's the way it is' decisions that I couldn't fathom in any other company. I don't think he cares so much about the guts anymore but about what the finished product should be. What the weight should be. What the size should be, etc. And then he puts people to work to make it happen.

I think he makes a very big difference in terms of making decisions, even more radical ones. If you look at Microsoft or any other bigger company, you see that they lack a common vision and they usually make `middle of the road decisions' -- which then leads to mediocrity. Things are not really good, but not really bad either.

Originally Posted by ghporter 

And frankly, is Apple JUST Steve Jobs?

Well, in the eye of many analysts, it is. Obviously, it's not really true, but he's very influential as he has made quite a few very good calls (iPod, iTunes Music Store, iPhone, etc.). Someone that good is going to be difficult to replace.

[ghporter]

So I guess my real question is whether or not Apple should be "all about Steve." Maybe it's time for Steve to start stepping back and being more of a coach and advisor-with the explicit job of "maintaining the big picture and vision" obviously. Not because I don't think he's done marvelous things, but because if he is so central to Apple, then Apple must eventually fail. With the company built the way it is, around Steve and his vision, then it's guaranteed to disintegrate eventually, right? I mean, Steve is only human and eventually we all die.

What will Apple do when, as he eventually must, Steve Jobs gives up his position, for whatever reason? And what's being done to make sure that there is an Apple after that point in time?

[OreoCookie]

Originally Posted by ghporter 

So I guess my real question is whether or not Apple should be "all about Steve." Maybe it's time for Steve to start stepping back and being more of a coach and advisor-with the explicit job of "maintaining the big picture and vision" obviously.

You're absolutely right. And that's how I actually interpret the fact that he's giving more stage time to people like Scott Forestall, Phil `the benchmarker' Schiller and Jonathan Ive. There is no use if Jobs makes it all about himself and then when he leaves, there is no one to take over.

Even more so, knowing Wall Street, even if the next generation of leaders of Apple are more than up to the job, they'd see this as `now Apple is starting to die again'-type of thing. Just the rumors and news about his health were having considerable impact on the AAPL stock prices. I would assume he makes a slow exit: giving more and more power to other people while possibly retaining some role in product development. Perhaps in that respect, his health problems were a good thing, because it forced him to think about this (In the event of his death, who would he want as his successor?).

[chabig]

Originally Posted by olePigeon 

Apple could be in trouble trying to compete with $350 Dells.

Somehow I think $350 Dells are more of a threat to Dell than to Apple.

[shabbasuraj]

Originally Posted by edge.it 

im working on this school assignment,......
any advice will be GREATLY appreicated

Do your own homework? or face the penalties of ACADEMIC DISHONESTY.



but ya but back to your question..... Apple has to make some more affordable computers.

[jokell82]

Originally Posted by shabbasuraj 

Do your own homework? or face the penalties of ACADEMIC DISHONESTY.



but ya but back to your question..... Apple has to make some more affordable computers.

Their last quarter's earnings report says otherwise.

[Salty]

I think the biggest issue will be that people will start abandoning the iPod in favour of their cell phones. The thing that's saved the iPod thus far is the cell phones out there mainly suck. Apple's best bet is to come out with an iPhone mini/nano/whatever that's basically an iPod nano with a slide out keyboard or something, either that or a really small iPod touch with a phone and no support for the app store. Fact is unless they start dropping the iPhone to the 19 dollar on a new contract range they're going to steadily be eroding their share of the portable music market.

I think also their Apple TV strategy in general is wrong. If they converted the Apple TV into a basic media centre PC type deal they'd be much better off. They need to add a TV tuner, and it needs to be more extensible. IE add support for more codecs, cause granted Vuze has added support for Apple TV but Apple needs to help there too, cause frankly having to transcode your whole library is just not appealing to a lot of people. And let's be honest the iPod wouldn't be where it is without piracy and that's why the Apple TV isn't there yet.

Beyond that, as the cellular becomes the computer Apple's in the best place for that compared to anyone else, but Android could potentially level the playing field for almost anyone eventually. (Thankfully I think as this happens Microsoft is going to see major market share loss!)

I think also with the move into standard PC parts I think you're going to see a lot of manufactures continue to copy Apple, and who knows if Android keeps moving into Netbooks and Nettops you might see those become bigger competitors to Apple. It would be nice if they threw a light weight version of OS X on some atom based things as internet appliance type dealies.

[angelmb]

I think also with the move into standard PC parts I think you're going to see a lot of manufactures continue to copy Apple

I guess the iPhone/iPod are moving in the opposite direction.

Apple is working on something big. Apple's New Era. Forbes.