Apple Computer Strategy Rx
In recent posts, I've suggested two strategic moves for Apple Computer. Today I add the third leg of the strategy to move Apple from its perpetual niche as an interestingly different but second-tier player in the computer industry to the ranks of the super-heavyweights: acquire Nintendo.
The first leg of this strategy, detailed in Apple, Lose The Hardware, Free The Software, is for Apple to get out of the business of manufacturing computers and free the Macintosh operating systems, OS X, to compete head-to-head with Windows on all Intel compatible PCs. Now that Mac's operating system has been ported to Apple's Mac-specific Intel platform, this last step should be a fairly simple task. Apple would then sell OS X like Microsoft sells Windows, with the initial price hidden for most customers in the price of PCs delivered with it. Brand the operating system with the Mac name. Make moving (of course, call it upgrading) from Windows to Mac easy. Expand Apple's software business beyond this, focusing on categories where Apple's customer savvy and design prowess can add value and differentiation. Major manufacturers like Dell and HP would benefit as well, offering Windows or Mac PCs (same hardware, different pre-installed OS). Add virtualization and the options become even more intriguing.
The second leg is for Apple to acquire Adobe Systems (Apple Should Acquire Adobe). Adobe's offerings would give Apple, the premier design-focused technology company, an unmatched array of content design and delivery tools. Apple and Adobe already have large, committed followings of web site and graphic designers, and both of their respective camps should feel at home with the combined company. Apple would then propel the web to a new standard of rich, entertaining content authored by anyone and everyone.
Leg three completes the picture of an entertainment technology powerhouse with the acquisition of Nintendo. This brings Apple the game platform it needs. The Apple-Nintendo combination would make the game console race with Sony and Microsoft much more interesting and could move Nintendo to the head of the pack.
Apple's high-flying stock and iPod-pumped revenue give it the currency and comparative valuation it needs to do these deals. This is a window of opportunity that could close.
These three strategic moves, added to the iPod/iTunes empire, would pave the way for Apple, the entertainment technology company, to move into the $50 billion dollar club and beyond.
Copyright © 2006 Philip Bookman
Technorati: Apple Computer, Mac, software strategy, Nintendo, Adobe Systems
The first leg of this strategy, detailed in Apple, Lose The Hardware, Free The Software, is for Apple to get out of the business of manufacturing computers and free the Macintosh operating systems, OS X, to compete head-to-head with Windows on all Intel compatible PCs. Now that Mac's operating system has been ported to Apple's Mac-specific Intel platform, this last step should be a fairly simple task. Apple would then sell OS X like Microsoft sells Windows, with the initial price hidden for most customers in the price of PCs delivered with it. Brand the operating system with the Mac name. Make moving (of course, call it upgrading) from Windows to Mac easy. Expand Apple's software business beyond this, focusing on categories where Apple's customer savvy and design prowess can add value and differentiation. Major manufacturers like Dell and HP would benefit as well, offering Windows or Mac PCs (same hardware, different pre-installed OS). Add virtualization and the options become even more intriguing.
The second leg is for Apple to acquire Adobe Systems (Apple Should Acquire Adobe). Adobe's offerings would give Apple, the premier design-focused technology company, an unmatched array of content design and delivery tools. Apple and Adobe already have large, committed followings of web site and graphic designers, and both of their respective camps should feel at home with the combined company. Apple would then propel the web to a new standard of rich, entertaining content authored by anyone and everyone.
Leg three completes the picture of an entertainment technology powerhouse with the acquisition of Nintendo. This brings Apple the game platform it needs. The Apple-Nintendo combination would make the game console race with Sony and Microsoft much more interesting and could move Nintendo to the head of the pack.
Apple's high-flying stock and iPod-pumped revenue give it the currency and comparative valuation it needs to do these deals. This is a window of opportunity that could close.
These three strategic moves, added to the iPod/iTunes empire, would pave the way for Apple, the entertainment technology company, to move into the $50 billion dollar club and beyond.
Copyright © 2006 Philip Bookman
Technorati: Apple Computer, Mac, software strategy, Nintendo, Adobe Systems
Labels: Adobe Systems, Apple Computer, Mac, Nintendo, software strategy
posted by Phil Bookman at 11:32 AM
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