SFist Tech Labs: They Also Make Computers
The MacWorld Expo 2006 isn't due to start until the second week of January, so the Apple rumor sites are already hard at work trying to ruin the surprise.
We already mentioned ThinkSecret's post about a Mac mini-based home media hub, and it's also speculating on the content delivery system that device will use. AppleInsider is claiming that the company will expand further into consumer electronics from its iPod division, including an iPod-powered boom box.
In the labs, we value cold hard science over anonymous "insider" information, but we're not going to let that stop us from speculating on how much of this stuff is likely.
Image from Apple's famous 1984/Big Brother commercial, via Apple-History.com
We think that the Mac mini-powered home media center is a no-brainer. Admittedly, that could be biased by the fact that we really, really want one, and if Steve Jobs did announce such a device at MacWorld, we would be at the Apple Store with credit card in hand even before he had a chance to leave the stage and the applause died down. All the pieces are in place — Mac mini, AirPort Express, iTunes Music Store, deals with networks and music companies, and the media-centric iMac G5 with FrontRow with included remote. It seems that the only logical step left is to tie everything together with an "iPod for your home" announcement, and then enjoy step 3: Profit.
As for other consumer electronics, we're not so convinced. We're willing to be proven wrong, but it seems this is an area that's coming out of left field and is already amply covered by third parties. There's no shortage of accessories, plug-ins, external speakers and the like available for iPods; what would Apple gain by getting into that market and alienating the companies that are already boosting sales for their iPods? It's done competing with Microsoft now, so the comapny is deciding to take on Bose?
Whatever Apple decides to announce at the Expo, it's clear that it's going to see a wider gap between its computer and consumer electronics divisions in 2006. You can already see it at the company's retailers, where there are separate check-out lines for iPods. Apple does a good job of emphasizing the integration between all its products and services, showing each notebook or desktop PC with an accompanying iPod, all running OS X and using .Mac together — all fitting in with the early concept of the Macintosh as a home appliance instead of a personal computer. But if it transforms into the Sony of Cupertino, is Apple going to become too spread out to keep the brand loyalty and reputation it's built for itself?
A commentary in The Age of Australia talks about "the five rules of cool", the five ways that Apple has managed to remain such a prominent brand name even when it hasn't had an equally prominent market share. In essence, the five rules can be boiled down to two: 1) Be run by Steve Jobs, and 2) Be the underdog.
Positive reputation and brand loyalty aren't enough on their own to keep a business running — just ask TiVo. But it helps. Apple survived the iTunes phone disappointment with its reputation intact; problems were blamed on Motorola, and Apple fans remained convinced that when a real iTunes phone, actually designed by Apple, would be awesome. The biggest ding in its reputation is Apple's perception as a luxury brand; admittedly, its products are well-designed, but too expensive — in essence, the worst its critics can say is that Apple is the BMW or Lexus of personal computers. And MP3 players. And operating systems.
As it moves more towards the center of your personal media universe, the company will have to keep that spin going, showing that it's expensive but worth it, that it's dominating the market for digital music but still the plucky underdog, and that everything it does is integrated under the philosophy of ease of use and innovative design. Now if only they had somebody charismatic in charge who was really good at spinning public perception...