Apple's Intel transition leaves too many questions unanswered
Tags: Apple, Intel, IBM, Marketing
The Jobs WWDC keynote is now over. The Wall Street Journal, CNET, and the Times all got it right: Apple is converting its processor line to Intel Pentium processors. And there were no real additions to the story; that WAS the story. There was no WiMax, no Intel doing anything different, just as Jobs put it, "a brain transplant." With software support, I might add -- Jobs has put in place both development tools, partners, and emulation technology that will make the transition relatively painless.
But that's the technology part of the story. The marketing issues aren't nearly as clear. So here are the questions I still have in my head after listening to this story:
As I noted before the keynote, this transition is a marketing issue as much as a technology one. Jobs did a great job of answering the technology questions for the developers. But the marketing jury is still out wondering whether this is a brilliant adaptation to a changing world or one more roiling change in an already unsettled market. We won't know until we see how customers vote with their dollars. But customers rarely like big changes in strategy until they understand the story again. And this story is still pretty unclear.
The Jobs WWDC keynote is now over. The Wall Street Journal, CNET, and the Times all got it right: Apple is converting its processor line to Intel Pentium processors. And there were no real additions to the story; that WAS the story. There was no WiMax, no Intel doing anything different, just as Jobs put it, "a brain transplant." With software support, I might add -- Jobs has put in place both development tools, partners, and emulation technology that will make the transition relatively painless.
But that's the technology part of the story. The marketing issues aren't nearly as clear. So here are the questions I still have in my head after listening to this story:
- How does Apple keep people buying PowerPC Macs?. With this keynote, Jobs has just pre-announced a June 2006 product, namely a Mac with Intel inside. While he hasn't announced end-of-life for current products, he has certainly seeded uncertainty in the prospect and customer base as to the future of current products. So what will keep Mac sales afloat for the next year?
- Is Apple's stylish design enough differentiation in an Intel world? Yes, Apple plans to build a Macintel box, not a Wintel one, but will a good GUI, great industrial design, and customer service be enough to sell products against the likes of Dell? This change just raised the stakes on Apple marketing to new highs.
- What else is changing in the Mac platform? Is a new Mac just an Intel motherboard with Apple software? Or are there new places where Apple is adding differentiation? Will Tiger run on a garden variety Dell?
- What are the barriers to replication?How does Apple keep Dell from just copying any successful innovations out of Apple? It's not like there is necessarily any hardware barrier to entry any more.
As I noted before the keynote, this transition is a marketing issue as much as a technology one. Jobs did a great job of answering the technology questions for the developers. But the marketing jury is still out wondering whether this is a brilliant adaptation to a changing world or one more roiling change in an already unsettled market. We won't know until we see how customers vote with their dollars. But customers rarely like big changes in strategy until they understand the story again. And this story is still pretty unclear.
posted by Carl Howe at
2:13 PM
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