The Bankwatch

Tracking the consumer evolution of financial services

Is Apple a hardware rooted dinosaur? | Fred Wilson

This is an interesting thought study from Fred Wilson. He believes that by 2020 Apple will not be in the list of top 3 companies and here is why.

VC Fred Wilson: By 2020 Apple Won’t Be A Top-3 Tech Company, Google And Facebook Will | Techcrunch

“I think hardware is increasingly becoming a commodity,” he said. “Their stuff in the cloud is largely not good. I don’t think they think about data and the cloud.”

Now I’ll admit to being an Apple advocate, but lets break this thought down.

Hardware as a commodity:
Absolutely. Thats a given and already happened, although there are some less that minor adjuncts to that meme.

  • Google operates on proprietary hardware
  • commoditized hardware is comprised of the parts that you can pick up in Chinatown; how many of us actually operate on commoditized hardware?
  • Apple have a security and efficiency model that extends from their chips, through hardware and software

Apple Cloud is not good:
I am a long time windows and linux user. My introduction to Apple was iPhone. My first reaction to iCloud was ho hum. Everybody else gets that cloud is a remote hard drive; why can’t I look at, edit and manage my iCloud. Then I replaced an iPhone, my wife lost another one, etc. When you take new device and turn on to see your previous configuration there in a relative instant the power of iCloud sinks in.

Thats not to say iCloud couldn’t be a lot better. iCloud handling of photos sucks. The basic premise of photos is to store them for future viewing. iCloud treats photos as if the last 1,000 are all that matters.

Going back to the original main argument that hardware and cloud are Apple disadvantages. There is an argument that hardware is an Apple advantage because of things like security, battery efficiency, and application optimization.

Cloud computing is a different point and there are weaknesses there although I believe we don’t fully understand hoe cloud will evolve. So the jury is out on this one. My thought is that Apple are looking at cloud differently and thats not a bad thing.

We will see.

Written by Colin Henderson

May 5, 2014 at 23:15

Posted in Uncategorized

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