Steve Jobs, the co-founder (along with Steve Wozniak and less known Ronald Wayne) and as of yesterday the CEO of Apple computer (AAPL), is the quintessential image of modern success. Born to Syrian and American parents who put him up for adoption and subsequently being adopted by Paul and Clara Jobs, Steve grew up in Mountain View (the base of Google) and went to high school in Cupertino (the base of Apple). Steve dropped out of college after one semester, and audited classes while sleeping in friend’s dorms. He collected coke cans for money and ate for free at a local Hindu temple. He started attending computer club meetings, and worked for Atari. Eventually Jobs along with the other men previously mentioned started Apple in 1976. In 1985 a man Jobs hired relieved Jobs of his position…
Having being kicked out of the company he started, Jobs went on to buy Lucasfilm’s ‘Graphics Group’ which he renamed ‘Pixar’ which was responsible for Toy story and virtually all 3D Disney movies. In 1996 Apple bought out a company Jobs founded called NeXT, which was a creator of high performance computer systems (similar to Alienware). Jobs later reemerged as CEO and led Apple’s ascension into greatness. Under Job’s leadership Apple went on to produce the highly successful iPod, iPhone, iPad, and experienced higher demand for Mac desktop and laptop systems. Jobs started an orphan, college dropout, and LSD user and emerged as one of the most well known CEOs of our time even though the past years he has been plagued by pancreatic cancer.
Apparently both Apple and Google are working on top boxes that will connect to the TV and enable applications to be run. I have yet to read details on what kind of apps will be available or why this would be useful or necessary, or perhaps both companies are blindly pursuing a technology that no one wants or needs. Microsoft has no comment on this technology and seems to be sticking with its bread and butter business of enterprise software, operating system, the office product line, and the XBox.
When you can get all the functionality of the iPhone or iTouch into the slim size of an iPad which will only weight 1.5 lbs and if you can watch the video below is less than an inch thick, can access iTunes etc. I think Amazon and Barnes and Noble are going to become worried.
Apple computer has experienced tremendous growth within the last seven years; and like the seven good years and seven years of famine as described in the Bible, Apple will most likely witness a large decline in these next seven years. Apple has been relying on a unique and stylish design, and easy to use software to maintain the huge profit margin Apple has received in exchange for their goods.
Now, just seven years after the ipod has been released, Apple will experience a fall from grace. People will be less prone to jump on the bandwagon just for the sake of being cool. People have also realized that Apple’s scheme of protecting their AAC files from being used on more than three computers, or from being easily copied to MP3 format, is a major and costly drawback. If the government’s bailout plan fails, or even if it is only marginally sucessful, the United States economy is braced for and expecting a major recession if not greater.
These circumstances add together to mean a major slowdown in purchases of Apple products (ipods, iphones, laptops, etc). As these are the bread and butter of the company, Apple will have a few choices to make in order to survive. Either they can reduce their prices, change their monopoly/cartel like approach to music, or develop another revolutionary product. Admittedly, Apple will still receive a large portion of revenue from overseas, but we cannot be certain that those markets will not follow ours.
All in all, it comes down to this: If there is a depression or major recession Apple will undoubtedly be one of the worst hit. It stems from this belief that I believe Apple must have a Plan B, or even a Plan C. Thank you for reading, and I sincerely hope the economy does not crumble.