Apple's New Killer App
Ok, so the general feeling around the blogosphere following the Apple announcement could be described as... depression, anxiety, disappointment, confusion and unease.
It's almost as if we're all saying, "you're the one who got us here, Steve. You salvaged the legal music download business, you busted out the video iPod without changing the price. You proved to us that people would watch a little screen. Now we're standing here holding our iPods and we're not sure where to go next. Show us the way, Steve, just like Bill used to do."
And then he comes out with... a new version of iTunes?? $9.99 for a drm'ed movie download? And the set top box so, what, I can watch my favorite shows on my TV at $1.99 an episode? I can watch them for free on my TV now.
But for those worried about Apple, don't be. I've been hearing concerns about flattening iPod sales for months now. It seems like everyone's forgotten that, for Apple, it's not about the iPod anymore. Apple already introduced their next killer app - and they did it almost a year ago.
Bootcamp. You can run Windows on a Mac now. PC users don't have to sacrifice their operating system to buy the prettiest, slickest hottest computers on the market. And if they like OSX, they can ease into it.
Apple's new product is their original product. Hardware. Now you can argue that an Apple's more affordable than a Dell. Last year at this time, that debate would be pointless - Apples and Oranges (or Windows, as the case may be).
In the third quarter, Apple reported a 12% increase year-to-year in Mac sales. PC users are moving to the Mac, while staying PC users. And that trend is only beginning. It seems like every month another blogger I read buys a Mac. Come to think of it, I don't know a person who's bought a computer in the past few months who hasn't at least considered a Mac.
Those guys over there a pretty smart. In the past year, they revolutionized the video download business and overnight they've become a major player in the PC hardware biz.
Don't look at their iPod sales, look at their hardware sales. I have a feeling it's a damned good time to own Apple's stock.