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December 17, 2008 9:04 AM PST

Apple and the peril of innovation

by Don Reisinger
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Now that Apple has announced that it is pulling out of Macworld after its 2009 event, during which Steve Jobs won't be making a keynote presentation, the outpouring of outrage is being heaped upon us once again by those who can't believe that Apple is ending its association with IDG and its expo.

Why? IDG and Apple's relationship over the past few years has been anything but cordial, and we can't forget that Apple wants complete control over, well, anything Steve Jobs can get his hands on. On top of that, Apple has been able to create Macworld-like hype for its own events, so the need for a Macworld keynote is even less appealing.

But to simply stop there in trying to explain Apple's decision to drop out of IDG's event would be overlooking the idea that the company may have run out of ideas for Macworld destined to send shock waves through the industry.

A quick look back at recent Apple events tells you everything you need to know about the position Apple currently finds itself in. Besides its latest, during which it showed off the new MacBooks, most of Apple's press events over the past few years have been sub-par, to say the least.

An iPod refresh event? Please. Discussions on sales figures and App Store mumbo jumbo? What a joke. I don't need Apple to drag me to a press event in Cupertino to tell me that the iPod, which was once tall and thin, is now short and fat. And when Apple decided to bring its design back to the tall-and-thin design, I didn't need to be there to hear that, either.

I don't blame Apple for holding press events, though. After all, what other company can coax hundreds of reporters to fly to San Francisco for a less-than-stellar announcement, time and time again, without any backlash?

For years, Apple amazed us with outstanding events every few months, when it unveiled some of the best products on the market. Since then, the allure has worn off, and Apple, just like every other company in the business, simply can't innovate as quickly as it once did. In essence, its product updates are being more evolutionary than revolutionary.

That's not a bad thing. I'm perfectly fine with evolutionary upgrades to the company's product line, and I think most consumers are as well. But because it has always relied on press events to unveil those updates, Apple still feels obligated to drag us out to San Francisco to see Steve pull the latest and greatest Apple device out of his back pocket, even though it's a small upgrade over its predecessor.

And although I'm sure that some Apple zealots out there won't want to hear this, I'm afraid that Apple's capacity to deliver groundbreaking products every few months at its various events is severely diminished. Suffice it to say that the Mac maker has become just like every other tech company; it upgrades its product line once a year or so, and most of the updates fail to impress most people.

It's for that reason (at least in part) that I believe Apple has decided to pull out of Macworld. It likely has little to do with IDG issues and even less to do with Steve Jobs himself. Simply put, Apple doesn't want to have to force itself to innovate for the trade show just to satisfy hype-driven media outlets.

Welcome to reality, Apple. Enjoy the stay.

Check out Don's Digital Home podcast, Twitter feed, and FriendFeed.

Don Reisinger is a technology columnist who has written about everything from HDTVs to computers to Flowbee Haircut Systems. Don is a member of the CNET Blog Network, and posts at The Digital Home. He is not an employee of CNET. Disclosure.

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Add a Comment (Log in or register) Showing 1 of 2 pages (70 Comments)
by BruinGuy December 17, 2008 9:38 AM PST
Oh, man, you opened up a can of worms and will have the Apple FanBoys jumping down your neck now! Whew!
Reply to this comment
by fshepinc December 17, 2008 9:59 AM PST
Whether you're a fanboy or not, Mr. Reisinger simply hasn't proven his point. "Apple has had a bad relationship with IDG for years, has been pulling back from the trade show, and has proven it can draw the press to it's own events, without IDG. Oh, and I didn't think the last few updates were all that spectacular -so the real reason Apple is pulling out is because it can no longer innovate." Huh??? When there is a good (and obvious) reason for something to happen, why go out on a limb to suggest there's a hidden reason operating instead?

Whether you think Apple is a brilliant innovator or just a media *****, it's clear from the sales figures that Apple is successfully promoting its products even in this miserable economy. The average buyer is quite happy with their new iPod, laptop, or whatever and doesn't care if it was announced at Macworld, an Apple-only event, or just on TV.

As a certified fanboy, I'll miss the big Macworld and Jobs' keynote, but Apple will get along fine without those. And, since there really wasn't anything in it for them (that they couldn't get on their own, and cheaper), why should they continue? Only time will tell.
by Penguinisto December 17, 2008 10:39 AM PST
I can say that I usually enjoy Don's articles. I even enjoyed this one, though I wonder about a couple of points:

Yep - Don does make some good points, but he also tends to bury them in confusion, starting with:

"Apple still feels obligated to drag us out to San Francisco..."

Actually they don't "still" feel obliged, considering that they announced this upcoming MacWorld as their last. Whoops.

Don also wanders very deep into Strawman Argument territory with:

"I'm afraid that Apple's capacity to deliver groundbreaking products every few months at its various events is severely diminished."

Err, okay, but since when has that ever happened? The Air is roughly a year old. The iPhone came out two years ago. The iPod came out ~6-7 years ago. The closts product differential for any two products was between Leopard (OSX 10.5, late-2007) and Air (early 2008, IIRC) - the rest have years between 'em (seriously - iPod product refreshes do not count) So, err, where is this baseline of "groundbreaking products every few months" that he's claiming? Or does his idea of "few" include numbers that get large enough to include more than a year?

I think what had happened is that he confused himself, going from "outstanding events" to "groundbreaking products" without realizing that the two have different meanings.
by Seaspray0 December 22, 2008 7:53 AM PST
Hey, Penguin. I'm still waiting for you to back up your lie. Where's all these teenagers you mention from your quote "any 13 year old can write a script" to hackwindows? It's been over a week now and you haven't even produced ONE. I copied your post in case you need your memory refreshed. That way there'd be no doubt on what you said. Why are you avoiding me, penguin?
by jrbtempe December 17, 2008 9:43 AM PST
Couldn't agree more. I think Apple pretty much "shot its wad" with the original iPhone keynote, the proof being that all of the announcements since have been largely underwhelming. To their credit, though, I think even Jesus himself would have trouble topping the fervor of the Macworld 2007 keynote address (although that whole "water into wine" thing comes close). LOL
Reply to this comment
by lmasanti December 17, 2008 9:44 AM PST
quote:
"Suffice it to say that the Mac maker has become just like every other tech company; it upgrades its product line once a year or so, and most of the updates fail to impress most people."

Apple, in 1997 introduced the iMac, in 2001 the iPod, in 2005 changed to Intel, in 2007 introduced the iPhone... (not to mention software or stores)
What other "tech company" has that record?
Reply to this comment
by camman2003 December 17, 2008 9:49 AM PST
Umm, are you asking what company has a record of release Apple products?

We could take any company in existence and point out it's major product releases over the past few years and say "hey, who has THAT record!?"
by mycbrad December 17, 2008 9:50 AM PST
Yes, but in between those 3 announcements were 40 others that were things like, "we're blowing the roof off the place by now offering the iPod Nano not just mugme white, but a slick looking black color! worship us!"
by evmorales December 17, 2008 10:01 AM PST
The author wasn't saying that Apple is like every tech company in every respect. He was saying that Apple is like every tech company in the sense that it has reached a point at which there is less room for innovation, which is clear when he says "it upgrades its product line once a year or so, and most of the updates fail to impress most people." Since that part of the sentence comes immediately after "Suffice it to say that the Mac maker has become just like every other tech company," it is obvious that it qualifies the author's assertion, making it specific rather than general, as you seem to have interpreted it.
by helroth December 17, 2008 9:12 PM PST
The point is that Apple's products are industry changers. With Apple in just a few years you had the iPod, which made MP3 players legitimate, then iTunes, which opened up the music (and other) download space - a whole industry was spawned. Everybody is copying Apple's portable computers, everybody's copying the iPhone, this year you had the iPhone App Store (which Rim and Microsoft and Palm and even Google are now trying to copy), the second generation iPod Touch (which is fantastic) and then the new unibody LED MacBooks and Pros. Apple probably has products ready to be released at Macworld, but have they delayed them until January so Macworld wouldn't be empty? It's not that theyre not innovating enough, it's simply the SCHEDULE of having to make a splash every January. Now they can release things totally on their own schedule.
by Perry_Clease December 17, 2008 9:50 AM PST
"Oh, man, you opened up a can of worms and will have the Apple FanBoys jumping down your neck now! Whew!"

As an Apple Fanboy I might as well start: You make some good points Don.
Reply to this comment
by jmaloof December 17, 2008 9:51 AM PST
OK... I agree with your conclusion. It must be difficult to force an earth shattering accouncement every few months. I'll bet that had as much to do with Apple's pulling out as anything.

What I'm not prepared to do, however, is to accept your assumption that Apple is all tapped out. Following up on the iPhone is a difficult task, but let's not forget that it was only 18 months ago. I think that Apple has provided us enough innovation over the past decade that we can give them a little lattitude.
Reply to this comment
by aztec92154 December 17, 2008 9:55 AM PST
Its going to be tough to come out with another market shifting product this year... They're already stretched very thin. Who can disagree with that? For now I'll just say: Good job! Keep up the great work Apple! We need more companies like you.
Reply to this comment
by Rawnchie14 December 17, 2008 10:46 AM PST
"Good job! Keep up the great work Apple! We need more companies like you."

Lol, no we don't. We definitely don't.
by Penguinisto December 17, 2008 11:02 AM PST
I'm not so sure that they're "stretched thin" - they've got quite a staff, and their products have OSX as its core (with perhaps something slightly different for the iPod), so it's not as if they've went off in every direction here.
by Seaspray0 December 19, 2008 9:41 AM PST
Hey, penguin. Where have you been hiding? Why do you keep ignoring me? All I want you to do is back up your lies. Come on, penguin. How is it that quote "any 13 year old can write a script" to hack windows, yet it was the only computer left standing in the last pawn to own competition? Where were all your 13 yr olds?
by lmasanti December 17, 2008 10:02 AM PST
quote:
"We could take any company in existence and point out it's major product releases over the past few years and say "hey, who has THAT record!?""

Please, do the list!
Reply to this comment
by pjhenry1216 December 17, 2008 1:09 PM PST
You want a list of every company that has released a handful of products within a decade?
by b_baggins December 18, 2008 7:47 AM PST
No, he wants a list of companies that have released half a dozen industry-changing products within the last decade.

Go for it. We'll wait.
by Mark_Anderson December 20, 2008 1:13 AM PST
Well bilbo, since Apple have released precisely two - iTunes and the iPhone - let's not get carried away shall we?
by The_happy_switcher December 17, 2008 10:07 AM PST
Who cares really? It was only serving to fuel speculation that Job's is dying because he appears thin and caused unnecessary panic selling of the stock. I say good riddance.
Reply to this comment
by Perry_Clease December 17, 2008 10:30 AM PST
Well, I for one will miss MacWorld, they were fun, but their time has probably passed.

As to Steve's health, sooner or later he will pass away, but I think that he will be around for a while.
by AppleSuxLeo December 17, 2008 10:09 AM PST
Maybe they could make everything see-through again , or bring back the puck-mouse or the Apple Lisa or the Newton ?
Reply to this comment
by ballmerisanape December 17, 2008 12:09 PM PST
or they could follow the rest of the industry and use the same OS and hardware case design, unchanged, for 8 years or so before finally getting a clue...
by medezark December 18, 2008 10:31 AM PST
The Apple Lisa was great!!
As far as everything else, apple doesn't innovate, they market. MP3 players, thin laptops, etc.
by saffroncapital December 17, 2008 10:11 AM PST
the thesis is essentially correct IMHO.... Apple gets control of its press releases and dumps the need to wow the crowds on a preset timeframe... but the way this is expressed is awful....
Reply to this comment
by iPhoneUser December 17, 2008 10:18 AM PST
the name says it all, certified fanboy.

no tech company in my lifetime (last 26 years) has matched Apple's success coupled with innovation. they penetrated the smartphone market it less than 2 years, and made a very large dent in it. they changed the way we buy/watch/listen to media, as the popularity of iTunes exploded hand-in-hand with the iPod. to suggest that Apple's now 'run out of ideas' is ludicrous. they pay people 6 figure salaries to come up with the latest and greatest devices, and the track record speaks for itself.

just wait until they unveil the $599 netbook with a multi-touch display everyone's blogging about next year.
Reply to this comment
by Mark_Anderson December 20, 2008 1:15 AM PST
They got their ***** handed to them by Microsoft in the computer OS market.

You seem to have missed that part.
by mrgoodall December 17, 2008 10:31 AM PST
Some folks are missing the fact that its really just Apple taking its product releases from the blogosphere and the interweb and places it squarely in Apple's hands. Every year around the time of every Mac Event (Macworld, WWDC), rumours and speculations abound about some way far cool Apple product announcement. When that exact thing didnt appear, then the show was a let down and Apple sucked. ***? Blame Apple for some pimply face person's imagination? And when they fail to produce it, they dont have anything to show?

Dont blame Apple for its events and the press they get, blame the press. Like it or not, Apple pushes the envelope on somethings and simply falls in line with others, but what they do offer is a great user experience. And some folks still miss this fact. You can pack features to death in your device or application, but if ts not easy to use, people are going to be frustrated. Linux anyone?
Reply to this comment
by TheDudeandHis360 December 17, 2008 10:44 AM PST
Considering BIG TRADE SHOWS are kind of a dying breed across this board this piece seems like needless Apple Basing. E3 is dead, dying, or on Life Support... Does this mean the video game industry is dying? Nope. It means companies have found a better way to get their message and products in front of the right eyes with Company Specific events. Apple has obviously happened on a similar revelation.
Reply to this comment
by ballmerisanape December 17, 2008 10:50 AM PST
Every year since the iMac was released an analyst/journalist says that apple is done with moving forward and can no longer pull a rabbit out of its hat. Every year they are proven wrong. Not saying you don't have good, if not obvious points... but everyone that has discounted Apple as producing fad products that have no longevity (think opinions about initial iPhone) have been proven wrong.

Call me a fan boy.. but it seems to me that Apple is just getting started.
Reply to this comment
by Shaun822 December 18, 2008 2:00 PM PST
Absolutely agree with the sentiment here. I love my MacBook and my Ipod Touch but am in no way a fanboy. I use my Windows XP Dell just as much as my MacBook and really have no bias one way or the other. Every year we hear about how Apple is done innovating and every year they innovate, even if it is just a small bit of innovation. Intel keeps pushing the envelope with the new processors. But, what PC manufacturer has been innovating lately? HP with the touchsmart is pretty cool, I like a lot of the features of Zune such as the music sharing and finding, but for the most part the computer industry is fairly stagnant.
by sting7k December 17, 2008 10:50 AM PST
Totally agree. Just look at E3, suffering a similar fate. Things are so complex now to develop that it takes much longer and so there isn't always something to talk about. You just get Steve up there going on and on about stats, sales, pie charts, bar graphs, and then at the end he talks about something new for 10 minutes. Waste of everyone's time and Apple's money.

Just put Steve in front of a camera and broadcast it over the internet or stream it to my iPhone through some new fancy service, no need to cram a few hundred into a room and have millions out there just waiting to read the updates and watch the replay later.
Reply to this comment
by ikramerica--2008 December 17, 2008 10:57 AM PST
MacWorld is dead. New York, Paris, Tokyo, all bye bye. The once yearly event MacWorld in January was the last vestige of the old way of doing things, when Apple needed this third party sponsor to help them create buzz and collect their suppliers under one roof.

The worldwide impact this summer of the iPhone 3G launch with no third party support was proof to Apple that they can control their own buzz from now on. They don't need a "MacWorld" show to do it.

They can hold their own events, go to CES and others if they want, and the world is paying attention.

The WDC is Apple's showcase event for their technology, and it is that event that brings together serious product developers as well.

Anyone wishing to read other meaning into this move away from MacWorld is projecting their belief/desires onto it. It's not supported by facts in evidence.

Maybe if it were not named "MacWorld" people would realize it isn't a big deal? Maybe if it were named "OutmodedJanuaryTradeShowEvent" instead, people would instead ask "why is Apple still going to this thing?"
Reply to this comment
by ncaissie December 17, 2008 11:10 AM PST
Just think how they would do if they lowered thier prices.
Reply to this comment
by Perry_Clease December 17, 2008 11:19 AM PST
Their prices are on par with an equally configured PC
by aztec92154 December 17, 2008 12:01 PM PST
@Perry

Didn't see that coming... :-)
by pjhenry1216 December 17, 2008 1:17 PM PST
"Their prices are on par with an equally configured high-end market PC"

There, I fixed that for you. They may be on par with expensive lines (which people will complain about), but there are a multitude of decent, equally configured PCs and laptops that are almost half the price. Just because there are some PCs that are as expensive as Macs doesn't mean that you can go say they're not more expensive than PCs. If you took the average price, then PCs have Macs beaten hands down. Even if you eliminate crap hardware, its the same thing. PCs can give quality AND affordability simply because its made in such higher volumes.
by Perry_Clease December 17, 2008 2:12 PM PST
"by pjhenry1216 December 17, 2008 1:17 PM PST"

Dream on
by helroth December 17, 2008 8:59 PM PST
If they're equally configured, they're not cheaper. And that's for equally configured HARDWARE - you can't configure the software equally because PCs don't run OS X and have nothing comparable to iLife (which is free on every Mac). And don't forget to add in the cost of your anti-virus and anti-spyware software.
by Seaspray0 December 19, 2008 10:00 AM PST
helroth, please explain to me the features in ilife that are "must have" for everyone. As a mac enthousiast, here's your chance to tell me why my existence on this planet will be incomplete until I use these features. So, rather than tell me the standard macboi "vista sux" with no explanation, I want to hear what features are just oozing with "you've gotta use this" in ilife. I'm serious here. I would really like to see this. Not one, and I mean not one of the bozo's here has even tried to explain any features that are unique to mac. All they can manage to burp out is "vista sux", day in, day out. Will you be the first one on the planet to actually tell me about the features in ilife that I absolutely must have?
by Mark_Anderson December 20, 2008 1:17 AM PST
Perry is partially right - Macbooks are competitive against some OEMs. As for iLife, since virtually every reasonable OEM machine comes with Works it's a moot point.
by ScaryMonkey69 December 21, 2008 2:12 PM PST
Gotta go with Perry on this one! I just built a Quad-Core 2.6 Ghz, 4 GB RAM, 1 TB hard drive, dual 8800 SLI system for under $1000 (XP Pro, not Vista). At least Apple sells high end gaming systems for Less!! The performance of OSX with Crysis is perfect!! Same for Half Life 2!! And the way they run 3D Studio MAX!!! OMG!!!!!!


*I hope you all caught that ;)
by sinicalrec December 21, 2008 3:44 PM PST
On par? Are you certain? Let's take a look at the cheapest Macbook right now, that would be last generations lowest end MAcbook, currently priced at $999.99 at Bestbuy and $994.00 at Newegg.com. The system's hardware parts are listed as is:

Core 2 Duo Processor, 800mhz FSB and 3MB L2 Cache
1 Gb DDR2 SDRAM
120GB HD
Intel Graphics accelerator card with 144 mb of shared memory

Now lets take a look at a similarily outfitted Dell laptop
2.1ghz Core 2 Duo Processor 800mhz 3 MB L2 Cache
2GB DDR2 SDRAM
160GB HDD
Intel Accelerator X3100 listed at 256mb of Shared Memory

That dell computer is listed at $849 on the official dell website, needless to say if you were to go to bestbuy or elsewhere you'd catch it at some sort of discounted price, on best buy's website there was a dell almost outfitted exactly the same as the one listed save for a slightly slower processor with a clock speed of 2.0 ghz and 2mb l2 cache which in reality is much of a difference and won't show any significant improvement between the two, and that laptop was on sale for $499.99. Sorry buddy, if apple has been known for anything it's the fact that they like to overprice their laptops and they continue to do so because people continue to buy into it.

And you'll argue that its because their laptops perform better despite possessing the same hardware, you'll go on to cite how it's UI is so much easier to use and how the little icons at the bottom look so cute when they hop up and down after you click on them and how nice that little touchpad feels. Then you'll say the problems with windows vista and how it's slow, it lags, it crashes, and how us windows/pc users face the perpetual fear of viruses and whatnot. But here's my testament, I don't like windows vista, yes it some cases it is slow, in some cases the freezes and that little fear of virus is something that sits in the back of my mind. But hey, life isn't always fast, i don't like waiting in the bank line or the clinic but ya gotta do what ya gotta do. Sometimes things in life just freeze, no more paycheck cuz u got laidoff, put school on hold cuz you got deployed. And hey i got a lot more things in life to be scared about than a little computer virus that can be easily removed in a couple of mins. But despite all these little kinks in my vista laptop.......and as much as I hate vista.....I will always hate Apple that much more :)
by savvydude December 17, 2008 11:13 AM PST
THE TRUTH:

1. MacWorld is in January, just after Christmas.

2. Many consumers wouldn't buy Apple products for Christmas because they were waiting for the next 'big thing' announced at MacWorld in January.

3. Other consumers weren't able to buy the next 'big thing' because of Christmas expenditures.

4. Apple's decision to bypass MacWorld is a logical, realistic business move. Since Christmas and first quarter sales were suppressed Apple is very wise to make this change.

5. MacWorld should move their event to early October - anybody listening?
Reply to this comment
by pjhenry1216 December 17, 2008 1:19 PM PST
Why wouldn't they have done that earlier? That has *always* been the case. Why change their minds now? It stands to reason that new factors have come into play. Whether the article is correct on its hypothesis as to what those factors are, I don't know. But logically, one would believe that these can't be the only reasons its pulling out.
by droid137 December 17, 2008 11:14 AM PST
Where is the proof that there is less room to innovate? I think there might be less impetus for Apple to expend huge R & D to bring another product to market, but there isn't any less room to innovate. They are rolling in the money for the iPhone, iPod, and nice lappies, and are probably quietly developing a new game console or other category of device that they think people will want.

But less room to innovate? Bah!

Looks like a slow post day.
Reply to this comment
by useful_worms December 17, 2008 11:40 AM PST
Let me get this straight: You're basing all of your conclusions on the fact that Apple is pulling out of trade shows? Adobe and Google are also pulling out of Macworld as well, but I'm guessing they'll find a way to keep on going... and trade shows themselves are becoming more and more archaic in this industry. I don't think it's signifying any apocalyptic events to come.

Your final reason actually makes sense, "Apple doesn't want to have to force itself to innovate for the trade show just to satisfy hype-driven media outlets." but I don't see where the "take THAT!" attitude comes into play. It's not like they've lost something. Last time I checked, they're doing pretty well. The iPhone came out LAST YEAR and I'll admit it's quite revolutionary. Give them a year or two before you call them evolutionary.

Also, we get that you don't want to "drag" yourself to San Francisco. Don't. It's almost 2009. We have webcams and webcasts and... telephones! Oh my! I'm pretty sure you can write an article as groundbreaking, researched and well-executed as this one from the comfort of your desktop PC. And if your Overlords decide you must go, don't whine about it. Every once in a while, a reporter (and even a blogger such as you) must get up and go somewhere for a story, and San Francisco isn't quite the third world.
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About The Digital Home

Don Reisinger is a technology columnist who has covered everything from HDTVs to computers to Flowbee Haircut Systems. Besides his work with CNET, Don's work has been featured in a variety of other publications including PC World and a host of Ziff-Davis publications.

Don writes product reviews for InformationWeek and is a regular contributor to Processor Magazine. You can visit his personal site at DonReisinger.com or if you would like to email Don with questions or comments, drop him a line at CNETDigitalHome@gmail.com. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure.

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