Priest of the Order of the Butterfly
Posts: 750 from 2003/2/14
From: Earth
The Apple in Our EyeIn the first quarter Apple generated $2 billion in revenue with 60% basically related to computers and the rest the iPod. If we study the profitability difference from a year ago we understand that the money is in the music (player). iPod sales were up over 750% from a year ago and contributed HALF of the growth from last year. More iPods were sold in the quarter than all Apple computers combined. For the first time iTunes made a profit in a quarter, while the 50 millionth download occurred.
=> Lessons learned: the END USER DEVICE is the KEY. If it helps people do what they do already and better and more conveniently (and be cool) -- it is a HIT. BTW, iPod sales are now helping drive Apple computer sales?!?!
The G4 computer business ranged from the $799 eMac to the iMac and the iBook to the $2999 17" PowerBook. Portables represented 48% of the computers sold. The G4 iBook was the star of the quarter and for the last year to date in terms of growth. In the QUARTER there were 623,000 G4 computers sold generating $871,000,000 in revenue. In the meanwhile, there were 206,000 G4/G5 PowerMacs sold for $398,000,000. As G5 sales demand grows, G4 sales will flatten. Apple will undoubtedly balance flat sales with lower prices in the G4 domain. Eventually, it won't make sense to do that any more. This is our sweet spot.
=> What does that mean for the future? Well, first we have a big opportunity. If Apple can do it, so can we. Especially, if we can achieve a profit at a lower price than them. They have more overhead. As we become Partners with Motorola/freescale who make the G4 we should be able to do that, especially when we OEM it.
=> What do we do now?!1. We have to be different. Being OPEN is the foundation. We need to rally the world of the Open Source and provide a direction and solid framework for development. We think we can do that. The Firmware is the first ingredient in the Open Power Architecture we will publish soon. Go Gerald!
2. Portability is key. A 1GHz handheld would be nice, so would a digital home/video game console. A total product roadmap is needed. We are working on it. At least we have a Partner now we can work with on this! The first step will be to make many more of the Pegasos II and for alot less!
3. The development platform for the future is here. It is the
Open Desktop Workstation (ODW). We need to exploit that. The ODW introduction at
Smart Networks Developer Forum (SNDF) is the first step.
===> We are looking forward to doing our best at SNDF. We have only opportunity before us.R&B
Pssst...MorphOS is still the Trojan Horse...