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Re: FCP-X: Case study for biz schools

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Jeff Bernstein
Re: FCP-X: Case study for biz schools
on Jun 23, 2011 at 9:05:06 am

If you are an Apple Reseller, the abuse is endless.

Let's assume, for the moment, that Apple also decides that its user base no longer needs PCI slots. Think about it, the next Mac Pro replacement is smaller, Apple is pushing Thunderbolt. When Apple moved from PCI-X to PCIe in the G5, they went cold turkey even though the chipset they used still supported PCI-X. Remember having to replace all those PCI cards? Wasn't cheap was it. Do you think Apple cares about your existing investment? Does this become the final blow to Apple in professional graphics, editing, and effects?

So let's review...

Apple starts with killing Xserve with no replacement, then kills FCS 3 (Soundtrack Pro, Color, DVD Studio Pro), Final Cut Server, not to mention Shake. Has anyone noticed that Apple Remote Desktop is looking pretty dead too? Apple won't divulge their roadmap because businesses LOVE surprises. By the same token, I'm sure Apple avoids looking at their supplier's roadmaps. I guess decisions are best made in a vacuum.

To be serious for a moment, my gut tells me that Apple is a victim of their own metrics. Before the iCrap, Apple had a profitable business with their core professional markets. In fact, Apple threw a lot of money at purchasing companies and their technologies to go after the Professional audio and video markets. Astarte, Nothing Real, Emagic, Macromedia (final cut only), Final Touch, and I know I am missing a couple. This was their core market. Then the iCrap started to really take off. Apple started to take away engineering resources from the Pro Apps.

In any event, Apple is making a ton of money on the iCrap which makes revenue from Pro Apps and the Mac Pro look like pocket change. Still profitable, but pocket change. I asked my brother about this situation about a month ago. He got his MBA from NYU. He's no dummy. His retort was generally this...

Apple is a public company that seeks to maximize profits. I replied, "But Apple holds significant market share in certain vertical markets. Why kill it?" He says, "The other stuff makes more money. Every company has limited resources, even if they are the highest valued company on the NASDAQ. Thus, they are going to put those resources into areas they get the most value and return."

He concluded, "Let's face it. Apple isn't really into you anymore."

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