Is Apple Finished? This Bit of History May Give Us a Hint
Calls for Apple's demise continue as the post-Steve Jobs years trudge along without the spark of the founder's genius. But maybe a bit of history will give us some insight into what this company may still be capable of. Let's turn the clock back seven years and see what we find.
It was January 10, 2007 when Mr. Jobs himself unveiled the iPhone. At the time, some cell phones were already capable of playing music; Blackberry's were already successful at managing e-mail. But nothing remotely compared to the iPhone. It was unprecedented. Trying to describe it, The Wall Street Journal called it "a media-playing cellphone." The phrase itself screams, "Ahead of its time!" No one was really sure what to make of it. The Journal questioned the ability of Apple to sell the device, given the relatively high price. They questioned the business model that called for Apple's profits to be dependent on selling the actual hardware - the iPhone itself - rather than relying on the profits of offering cell phone service, which is where the real money was being made in cell phones at the time. As a result of this, the Journal wondered how Apple could compete against the telecom companies who at the time were the major distributors of cell phones, which were bought as part of a decision to purchase a certain level of monthly cell service.
As we now know, Apple succeeded in making the iPhone itself a source of significant profits for the company, without relying on the revenue generated by the cell phone service itself. As a result, they changed the cell phone industry. We forget - given all the other choices competing now with the iPhone - just how successful the iPhone turned out to be.
Remembering that day in January, 2007 reminds us that the hand-held device wasn't always the center of our attention throughout the day as it is now. Sure, we talked on our cells; some of us e-mailed. We listened to music through ear buds. But we weren't completely enthralled and, yes, enslaved, by the little flat rectangles then. Now seven years later, we can't manage our lives without them. And it was mostly because of Apple's innovations that we've arrived at this point.
But we're still left now wondering whether that old Apple magic will dissipate now as the company continues to struggle without the creative soul of Steve Jobs directing its efforts. Recent product introductions don't really shake us or thrill us the way, for example, the iPhone did. Of course, improvements to current technology typically are welcomed, even enthusiastically embraced. Superior hardware continues to distinguish Apple products, even if the technology isn't as much of a stand-out as it once was. And yet it feels as if something is missing.
So what about Apple, the company which was the harbinger of our current state of life enhanced or enslaved as it is by technology? (Take your pick - or is it both?) Has Samsung grabbed the reins from Apple. It doesn't appear that way. Will another Apple device appear that might be the equivalent of that "media-playing cellphone" that will change our lives? I think the jury is still out on this. But history does tell us that companies who pioneer don't pioneer forever. Perhaps if Jobs had not died young, Apple would still have a few more sparks to light up the way of the future. But perhaps not even his genius could keep the Apple flame burning yet a few more years.
In the end, the introduction of the iPhone may tell us more about what Apple was rather than what it is or will be. Whatever the future brings, it's been a great ride for Apple, and we who still enjoy their way of organizing technology as well as the quality of the hardware they produce do appreciate what they've accomplished. Reason dictates that, looking back at not only Apple's history, but the history of innovative companies, the odds begin to stack up against Apple retaining its technology leadership role. But reason also tells us that we can't count them out just yet. There may still be one or more rounds to go in this championship run. We'll just have to wait and see.
It was January 10, 2007 when Mr. Jobs himself unveiled the iPhone. At the time, some cell phones were already capable of playing music; Blackberry's were already successful at managing e-mail. But nothing remotely compared to the iPhone. It was unprecedented. Trying to describe it, The Wall Street Journal called it "a media-playing cellphone." The phrase itself screams, "Ahead of its time!" No one was really sure what to make of it. The Journal questioned the ability of Apple to sell the device, given the relatively high price. They questioned the business model that called for Apple's profits to be dependent on selling the actual hardware - the iPhone itself - rather than relying on the profits of offering cell phone service, which is where the real money was being made in cell phones at the time. As a result of this, the Journal wondered how Apple could compete against the telecom companies who at the time were the major distributors of cell phones, which were bought as part of a decision to purchase a certain level of monthly cell service.
As we now know, Apple succeeded in making the iPhone itself a source of significant profits for the company, without relying on the revenue generated by the cell phone service itself. As a result, they changed the cell phone industry. We forget - given all the other choices competing now with the iPhone - just how successful the iPhone turned out to be.
Remembering that day in January, 2007 reminds us that the hand-held device wasn't always the center of our attention throughout the day as it is now. Sure, we talked on our cells; some of us e-mailed. We listened to music through ear buds. But we weren't completely enthralled and, yes, enslaved, by the little flat rectangles then. Now seven years later, we can't manage our lives without them. And it was mostly because of Apple's innovations that we've arrived at this point.
But we're still left now wondering whether that old Apple magic will dissipate now as the company continues to struggle without the creative soul of Steve Jobs directing its efforts. Recent product introductions don't really shake us or thrill us the way, for example, the iPhone did. Of course, improvements to current technology typically are welcomed, even enthusiastically embraced. Superior hardware continues to distinguish Apple products, even if the technology isn't as much of a stand-out as it once was. And yet it feels as if something is missing.
So what about Apple, the company which was the harbinger of our current state of life enhanced or enslaved as it is by technology? (Take your pick - or is it both?) Has Samsung grabbed the reins from Apple. It doesn't appear that way. Will another Apple device appear that might be the equivalent of that "media-playing cellphone" that will change our lives? I think the jury is still out on this. But history does tell us that companies who pioneer don't pioneer forever. Perhaps if Jobs had not died young, Apple would still have a few more sparks to light up the way of the future. But perhaps not even his genius could keep the Apple flame burning yet a few more years.
In the end, the introduction of the iPhone may tell us more about what Apple was rather than what it is or will be. Whatever the future brings, it's been a great ride for Apple, and we who still enjoy their way of organizing technology as well as the quality of the hardware they produce do appreciate what they've accomplished. Reason dictates that, looking back at not only Apple's history, but the history of innovative companies, the odds begin to stack up against Apple retaining its technology leadership role. But reason also tells us that we can't count them out just yet. There may still be one or more rounds to go in this championship run. We'll just have to wait and see.
Comments