Steven Levy in the June 2011 issue of Wired Magazine describes how and why Apple rose to dominance, the following stands out:
“Still Apple’s full-on devotion to something as lowly as a cover is a classic example of how the company concocts advantages in the areas that rival previous hadn’t considered all that important.”
TV coming as a service over Broadband/Internet… everybody is rolling up their sleeves and getting ready. Biggest hurdle – negotiating content license with Content Creators & Publishers.
A group of deep-pocketed companies, including Microsoft and Verizon, are exploring delivering TV service over the web, a move that could disrupt the economics of cable TV and lead to a new generation of “virtual” cable companies that provide TV without owning the pipe into the home.
The notion of an “over-the-top” video service that bypasses cable and satellite networks has been around for a long time but generally has been held back by two main factors: programmers’ reluctant to license new players and cable, telco and satellite operators’ control over the access to the home. They’ve also been held back by the limitations of the web itself: The infrastructure just isn’t there to support as many live simultaneous streams of content as a popular live event like, say, the Super Bowl would create.
“Somebody is going to pull the trigger this year. It may not be 250 channels in HD, but it will be at a minimum a good handful of channels with subscription on-demand and the ability to get the content on lots of devices,” said Braxton Jarratt, CEO of Clear Leap, which also provides enabling technology for web-delivered TV.
Ben Horowitz @bhorowitz on the type of CEOs needed during expansion vs. war. Google is entering a “war” and that couldn’t be truer! Gives high accolades to Andy Grove & Steve Jobs for being great Wartime CEOs.
In peacetime, leaders must maximize and broaden the current opportunity. As a result, peacetime leaders employ techniques to encourage broad-based creativity and contribution across a diverse set of possible objectives. In wartime, by contrast, the company typically has a single bullet in the chamber and must, at all costs, hit the target. The company’s survival in wartime depends upon strict adherence and alignment to the mission.
Be aware that management books tend to be written by management consultants who study successful companies during their times of peace. As a result, the resulting books describe the methods of peacetime CEOs. In fact, other than the books written by Andy Grove, I don’t know of any management books that teach you how to manage in wartime like Steve Jobs or Andy Grove.
Peacetime CEO aims to expand the market. Wartime CEO aims to win the market.
Smart, smart design. And guess what it all worked! Otis demonstrated great customer responsibility ….
The United Technologies elevator unit took 13,000 calls from Japanese customers in 48 hours and restored service to 16,400 lifts within seven days
Michaud-Daniel knew Otis had technology on its side, since about half the elevators it maintains in Japan—including most in high-rise buildings and regions with severe earthquake risk—are equipped with seismic detectors. At the first vibration signaling the onset of a quake, these devices return the elevators to the ground floor so passengers can exit, then block them until Otis can check their safety.
The detectors worked. Some 16,700 elevators in the areas affected by the quake were shut down by the emergency systems. Otis, which had worldwide revenues of $11.58 billion in 2010 and manufactured about 40,000 of the 80,000 elevators it services in Japan, didn’t receive any report of trapped or injured passengers. “All the elevators operated as they were supposed to,” says Michaud-Daniel.
Apple is known for clever partnerships yielding the best supply chain management. Imagine the Apple A4 & A5 chip are built by Samsung, using Samsung IP and building blocks but Samsung cannot build their own chip but has to use Nvidia.
The article talks about how conglomerates have to keep barricades up between different divisions. I suspect that in this case – Apple is also muscling its way for better deals. And why shouldn’t they?
Steve Jobs likes to poke bears. The Apple (AAPL) chief executive officer has ribbed the likes of IBM (IBM), Google (GOOG), Adobe (ADBE), and Microsoft (MSFT). In many cases, he rips into these companies even while Apple depends on them as partners. Adobe and Microsoft, in particular, have long provided valuable software for Apple’s operating system. No matter. They’re still subject to abuse from the man in the black turtleneck.
His latest whipping boy: Samsung, a rival to Apple in the consumer electronics business. During the iPad 2 unveiling on Mar. 2, Jobs roasted Samsung, making fun of one of its executives who tried to defend sales of the Galaxy Tab, the company’s answer to Apple’s first tablet computer. He also gave Samsung top billing in a chart proclaiming 2011 the “Year of the Copycats.”
Steve Jobs was quoted saying the following at the launch of iPad2 earlier this week:
An excellent editorial piece by Joshua Topolsky of Engadget – whether iPad2 is revolutionary or evolutionary – Apple is changing the game. And in doing so forging new territory.
Interesting analysis by TechRepublic on how Apple’s own retail stores provide an edge in pricing compared to HTC, Samsung and host of other Tablet vendors.
Takeaway: The biggest disappointment of nearly every promising competitor to the Apple iPad has been the price tag. Learn the one trump card that allows Apple to out-price rival tablets.
More specifically, the combination of Apple’s 300+ retail stores and its online Apple Store means that the company sells a huge chunk of its iPads directly to its customers. While Apple has cut distribution deals with Best Buy, Target, Wal-Mart, Amazon, and a few others, those are mostly market-share grabs and ways to help spread the iPad’s marketing message.
Apple appears to carefully control the inventory it sends to these retail partners. Even during the holidays, there weren’t typically huge stacks of iPads on a pallet in the aisle at Best Buy or Wal-Mart like other popular consumer electronics such as the Nintendo Wii or the Xbox 360. The iPads seemed to be sprinkled among the various retailers throughout the holidays. Meanwhile, the Apple retail stores were loaded with an almost unlimited supply of iPads, so if you wanted to make sure you got one your best bet was to go there (or order one from Apple’s Web store). One estimate was that Apple sold 8.8 iPads per hour per retail store on Black Friday.
The Logitech Revue has two primary peripherals – MiniController and the TV Cam. Per Logitech’s 10-Q for the quarter ending 12/31/2010 – Revue and peripherals sales were $23.4million.
Assuming all of this was only Revue and using an ASP of $250 (instead of $299, since they dropped it during the Holidays) – it would result in an approximate sale of 93,400 Units in little less than 3 months ….
Note R&D expenses were incurred for Revue development – with the development being outsourced? 10-Q makes special note of increase in Consulting Fees due to Revue. And also Marketing & Selling expenses were higher due to Harmony and Revue. All those loft parties apparently did no good …
A detailed analysis at some point with a better model may be more useful. Below are the significant statements pertaining to Google TV and Revue (mentioned 23 times) in the 10-Q.
line of Logitech products for the Google TV platform, including the Logitech Revue companion box, Logitech Mini-Controller and Logitech TV Cam with HD Vid service. For gaming consoles, we offer a range of gaming controllers and microphones, as well
as other accessories.
LifeSize video conferencing products. The adoption had no impact on revenue recognized from the remainder of our peripherals, as they are not multiple-deliverable revenue arrangements.
sale, and unspecified additional software upgrades to the essential software on a when-and-if-available basis. Logitech allocates arrangement consideration to each of these deliverables using a selling price hierarchy. Under the new accounting
guidance, the selling price is based on VSOE of fair value, if available, TPE if VSOE is not available, or ESP if neither VSOE nor TPE is available. The relative selling price of the hardware with the essential software is based on ESP. The relative
selling price of future upgrades to the essential software is based on TPE. Amounts allocated to the delivered hardware and essential software are recognized at the time of sale provided the other conditions for revenue recognition have been met.
Amounts allocated to the future unspecified software upgrade rights are deferred and recognized ratably over the estimated 24-month life of the hardware. There was no impact to prior period financial statements from adopting the new accounting
guidance as it relates to Logitech Revue, because there were no sales of the Logitech Revue prior to adoption of the guidance.
with the same period in the prior fiscal year, with double digit percentage growth in pointing devices, video, gaming and digital home. Digital home is a new product family combining Harmony Remotes, Logitech Revue with Google TV and peripherals
associated with the Google TV platform.
been below our expectations.
with the three months ended December 31, 2009, and increased 16% compared with the three months ended September 30, 2010, reflecting in part the launch of Logitech Revue in October 2010
region in the three and nine months ended December 31, 2010 compared with the same periods in the prior fiscal year, reflecting strong sales of products with higher average selling prices and in particular, Logitech Revue. All product lines
produced double digit percentage sales increases in both the three and nine month periods ended December 31, 2010 compared with the same periods in the prior year. Sales of the Digital Home product line were especially strong, based on the
newly-launched Logitech Revue.
Logitech Revue and the associated peripherals contributed sales of $23.4 million to our new Digital Home product family in the three months ended December 31, 2010.
2010 compared with the three and nine months ended December 31, 2009, primarily due to the addition of LifeSize sales and marketing personnel in December 2009, and variable demand generation activities focused on Harmony remotes and Logitech
Revue.
generation activities in connection with our Harmony Remotes and Logitech Revue, as well as other new product launches.
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