March 28, 2008 9:02 AM PDT

Prediction: Apple will eventually dominate the tech industry

by Don Reisinger
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So you've probably been told by numerous Apple zealots that their favorite company is the greatest in the world. And while they're all wrong for believing it, their company will eventually become the most dominant in the tech industry. Sorry to break it to you, but it's true.

So why will that happen? Believe it or not, it's not the stretch some may think it is. Let's face it -- Microsoft dominated the industry for years through sheer power and control along with a little business know-how thrown in. And although some like to believe that Bill Gates and company walked in one day and took the industry over, it didn't happen that way. Instead, it took years and a slew of deals to propel Microsoft to the top -- something Apple is working on now.

Now I know what you're saying -- "will this be an Apple fanboy rant about the wonders of Steve Jobs?" Hardly. The fact of the matter is Apple is poised to become the most powerful company in technology and along the way it'll definitely court its share of individuals who will despise its every move. And let's face it -- a company doesn't become the most dominant by being the nicest on the block.

An interesting study was recently conducted by Morgan Stanley. The investment firm surveyed US college students to see what their plans were after graduation and what computer they planned on buying. Amazingly, almost 40 percent of those surveyed said they would buy a Mac.

And while some would scoff and say that that means Windows will have a 60 percent market share, they should first consult the numbers. As it stands, Apple only commands about 15 percent of the higher education demographic, but now that 40 percent are ready and willing to buy a Mac, that statistic has been dropped on its head. Aside from that, Macs have become the computer of choice for college students and have supplanted Dell as the most popular brand.

What does that say about the future of the computing market? Sure, Windows machines are still more popular in other demographics, but if 40 percent of the world's next leaders leave college and decide to enter the world of Mac, how much longer can we expect Microsoft to maintain its stranglehold on the industry?

Aside from that, Macs are gaining ground each month and although Apple still commands an extremely small portion of the worldwide market -- about 3 percent -- things may change sooner than you think.

But let's not forget that Apple is a multi-faceted company. Instead of selling just Macs, Apple is the worldwide leader in the MP3 player market, has an extremely popular smartphone, is the world's second largest music retailer and is well on its way to becoming the largest.

Knowing that, Apple is very much in the driver's seat as it enters the next decade. Sure, quite a few things can happen between then and now, but Apple's position in the market is second to none.

So far, Apple is widely considered to be the "cool" brand that offers the best looking computers, the best music players, the slickest cell phone and a great library of songs, movies and podcasts on its iTunes store. In essence, it controls your entertainment and communication.

But it looks like it's not done yet. Now that the Apple TV has inched its way into relevance, the company may be able to control almost everything you do in the home and out on the town. If it can, what more can it dominate?

Going forward, there's no debating the fact that Google will control the online world and Microsoft will slowly sink into irrelevance while it brings in its $1 billion per quarter. But in the consumer division where hardware still reigns supreme, I simply don't see any company competing with Apple.

Of course, Apple's dominance won't come over night and chances are, it probably won't happen for a few years, but rest assured that the chances of any other company supplanting Apple as the heir apparent to the tech throne are slim. If anything, look for Google to control the online world and Apple to control hardware and entertainment.

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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by AppleSuxLeo March 28, 2008 10:08 AM PDT
Your thinking is very flawed and you are ignoring reality. Let me explain.
iPod sales are slowing markedly , and Amazon MP3 is well on it`s way to dominating online music sales because it is of higher quality , lower price , AND most importantly , NO DRM !
Apple`s biggest downfall and the reason they got beat by MSFT in computer OS`s is that Windows is the much more open system , while Mac is the most closed-off system.
HULU is another example of an Apple killer. Thousands of free TV shows and movies in high quaility with very minimal advertising. And when you click the buy link...it goes to Amazon , and guess what ? It won`t work on a Mac ! hahahah. Lots of things DONT WORK on a Mac. Steve always avoids that reality during his RDF displays. Thousands of great games DONT WORK on a Mac. Gaming on a computer IS gaming on Windows OS PC`s.
PC`s are so good Steve copied our hardware ! He used to make fun of our intel-based PC`s. Well guess what ? Macs ARE a PC. But Macs cost at least 30% more for the SAME hardware. MSFT gives you choice , lots of choice. And we can build our own. I went on the Apple site and was stunned. Afew notebooks , a single iMac thing that wasn`t upgradeable , and some way overpriced tower. Apple will continue to be a maker of boutique devices that are overpriced for their performance. An AIR with one USB port and thats it , just to say its thin ? Apple is happy being a maker of boutiqe PC`S. They have had a long time to crack 3% wordwide market share , and it hasn`t happened.
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by mikecomua April 2, 2008 8:44 AM PDT
Are you stupid or what? Of course WIndows has more apps because it is more popular, duh. If Apple will make better products more people will start using it's OS, therefore developers will make programmes for it. Before you say I am an Apple fanboy, I'm not. I use Linux, but I am very interested in buying a Mac
by RedZeppelin March 28, 2008 10:55 AM PDT
Interesting points, but you're overlooking the price factor. Apple hardware comes with a steep price tag, and as log as the economy is suffering it's going to be tough to convince Windows users to pay a premium for the Mac brand in order to make the switch.
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by mcooper13 March 28, 2008 4:27 PM PDT
They will never dominate in computers until they license their operating system. Either OS X isn't robust enough to run on many different hardware configurations or Apple fears that others could build cheaper and cooler systems with OS X. It's probably a combination of both. Their hardware isn't that good now that their market share is up. They can't handle the production. Look at all the screen issues they are having. And isn't the iMac just a glorified laptop deceptively jerry-built into a supposed desktop?
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by cameramanmike March 30, 2008 9:49 AM PDT
First off, macs are not more expensive than PC's. When you compare like equipped machines they are similarly priced. Macs are well made, they breakdown and get viruses much less often than PC's reducing there costs further. The mistake by many who say Macs are more expensive is that Apple really doesn't make a low-end product with cheap components...thats why you don't see a $500 Mac laptop. A macbook pro at $2000 will have similar components as a $2000 Dell, but be built better, last longer, get fewer viruses(if any at all), and have the capability of running Windows if for some reason you need it. Macs come loaded with a great
package of software missing from Windows PC's, especially those $500 laptops people think
are so reasonable compared to the $1000 macbook.
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by RedZeppelin April 1, 2008 8:48 AM PDT
"A macbook pro at $2000 will have similar components as a $2000 Dell,"
That may be true, but only gamers or power-users need a $2000 machine. I just built a Windows machine that runs Vista like a champ (and that's saying something) for less than $500. The only thing Apple has anywhere near that price is the mini(tm), and those things are so underpowered it's pathetic.
by mcooper13 March 30, 2008 11:54 AM PDT
"...and have the capability of running Windows if for some reason you need it."

This is not an Apple strength. This is a Windows strength. One should have the ability to run OS X on their PC. Apple will not allow this because OS X does not have driver support and is not robust. They wouldn't be able to handle the inevitable support crisis that would occur when OS X malfunctions in the diverse PC world.
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by mikecomua April 2, 2008 8:47 AM PDT
I don't believe this is so. OS X IS runnable on a PC, and there is even a cNet video, showing it. The problem is, Apple cannot compare to Alienware when it comes to gaming or to Dell when it comes to cheap and available laptops and desktops.
Apple has once tried to deploy Mac OS on other systems, but that idea has failed.
by Anon E Mus March 31, 2008 8:20 AM PDT
Phillip,

Do an article on what this means to Apple's bottom line on Jan 2010 assuming 45 mm phones in 2009 and recognizing:

1 - Phone sales are recorded as deferred revenue over 8 qtrs.

2 - Phones that go to subscription return at least $12/month cash flow to apple.

-------------------------------------------

a - 57mm phones sold = 12 mm phones sold by 1/09 added to 45 mm in 2009.

b - guessing 40 mm are not jail broken, then subscriptions in 1Q10 generate 40mm phones x 3 months x $12/mon = $1.44B! for Q1!

c - Deferred revenue recognized in Q1 2010 = 57mm phones x avg seeling price of $400 x 1/8 = $2.85 B (to the bottom line since the cost of the phones has been previously accounted for.

d - This isn't quantum mechanics: Apple will be bringing in $4.49B in additional iPhone quarterly revenue in Q1 2010 alone!

e - iPhone revenue for 2010 ANNUALLY, will be upwards of $20B and the profit on that will approach $15B. With about 900mm shares outstanding The iPhone EPS in 2010 will be $16.50!.

f - EPS of $16.50 times a multiple of 30 gives PPS impact of iPhone segment alone of $505!

g - Since the current iPhone PPS impact is (guessing) $40 and Apple is blowing the doors off w/ the iPod and Mac sales, I value aapl at $900 PPS by Jan 2011.

WHAT THE HELL AM I SMOKING!????
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by eldernorm March 31, 2008 8:36 AM PDT
WOW. are you ever a MS fanboy or troll, or just not with it. LOL

"----Let me explain. iPod sales are slowing markedly ".... the acceleration is slowing YEP. but the market share is still 70% ++. Hmmm, go buy a Zune. :-)

---"and Amazon MP3 is well on it`s way to dominating online music sales because it is of higher quality , lower price , AND most importantly , NO DRM !" ....... There is little profit in selling music. Apple only does it to support its iPod sales. A majority of nothing is still pretty small. Plus DRM free songs work on iTunes. So Apple is still there. Sorry... :-)

-----"Apple`s biggest downfall and the reason they got beat by MSFT in computer OS`s is that Windows is the much more open system , while Mac is the most closed-off system." ...... MS software -- open??? sorry, I don't think so. The hardware has lots of suppliers, all trying to be the low cost bidder. Cheap hardware is still just ... er... cheap.

---" HULU is another example of an Apple killer. Thousands of free TV shows and movies in high quaility with very minimal advertising."....... I love hulu too. FREE is a great price, but you do not make much profit from free........ and it costs to run that site. Not a very good business model. Sorry. :-)

----"And when you click the buy link...it goes to Amazon , and guess what ? It won`t work on a Mac ! hahahah. Lots of things DONT WORK on a Mac"........ Opppps MS troll, you forgot that you can run boot camp and run XP or VISTA on a Mac, as fast or faster than a PC see PC magazine tests. You lose again. Everything runs on a Mac these days, and when you use Mac OS, there is no spyware or viruses so no performance robbing spyware programs.

.---" Thousands of great games DONT WORK on a Mac. Gaming on a computer IS gaming on Windows OS PC`s."............ See above. MS troll at work here.... Beware.

--------" But Macs cost at least 30% more for the SAME hardware. MSFT gives you choice , lots of choice. And we can build our own. I went on the Apple site and was stunned. Afew notebooks , a single iMac thing that wasn`t upgradeable , and some way overpriced tower. Apple will continue to be a maker of boutique devices that are overpriced for their performance. An AIR with one USB port and thats it , just to say its thin ? Apple is happy being a maker of boutiqe PC`S. They have had a long time to crack 3% wordwide market share , and it hasn`t happened."......... TROLL ALERT. FUD here, beware. Do not buy a new Toyota, buy the parts and build your own. its cheaper. After all, parts are parts. .......OOpppps those do not work with these,.........sorry.

If you like building and constantly maintaining your own computer, I say just fine. But most of us like using an easy to use, functioning computer that is solid and lasts years longer than your typical pc. Look at the price of a used pc, and a used mac. See which holds it value longer. And I am using a 4 year old Mac laptop, but its running Tiger 10.4.11 and it runs great.

en
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by edgedesign March 31, 2008 9:00 AM PDT
Not sure they'll dominate, but they will become a much bigger player as time goes on. They certainly are firing on all cylinders and they're coming at several different angles. Apple zealots, fans and everyday users have understood this for some time now. This is especially true for those who use multiple Apple devices such as a laptop + iPhone + Apple TV. They all 'just work' and work together extremely well.

Sure, Apple lost a tremendous amount of market share to Microsoft in the early years because they didn't license their OS to every hardware manufacturer on earth, but now they may just have the upper hand. This seems quite obvious given Microsoft's 6 year struggle to deliver Vista and it's extremely disappointing reception. It's much much harder developing a quality OS with so many different hardware players and specs, not to mention all the security problems and viruses. Apple has a much easier time delivering new innovations and a solid OS because they also control the hardware. The same can now be said of the iPhone, Apple TV and of course iPods.

Consumers are beginning to figure out that time is money and they just want a computer, mobile phone and/or MP3 player that 'just works'. Not only are users finding Apple products are simple to use, but they're elegant, intuitive and less problematic. Many new Mac users switched from Windows due to an experience with an iPod or iPhone.

Large companies are beginning to see the light as well. Mac's lead to increased production and offer better ROI. Read up on Auto Warehousing Company's transition from Windows to Mac.

Mac's do not cost a lot more than Window's PCs as some have stated above. It's true you can purchase an entry-level Windows laptop or desktop for less that you can purchase an entry-level Mac, but the two do not compare. Apple doesn't want to sell a computer with such limited usability that users end up having a poor experience. Apple wants to deliver a great OS with an outstanding suite of applications for managing and editing your music, photos, videos, blogs and more. When you compare PC equivalent hardware/software packages to that of the Mac, you'll find their isn't much of a price difference and in some cases the Mac is cheaper. Factor in your time for set-up and dealing with security issues and viruses and you'll find the Mac is a real bargain.
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by WishIWasHere March 31, 2008 9:19 AM PDT
Mmmm, my Macbook must be an over achiever, as HULU works just fine on it.
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by Igiveup2 April 1, 2008 3:03 AM PDT
We've heard most of this sort of thing before. OS10.1 was predicted to rock the world when it was first released. There was some justification for thinking that might happen, because Microsoft's 9x OS's were abysmal and they really hit the wall with ME. But since that time Windows has improved by leaps and bounds, while OS10 has changed incrementally and relatively superficially. XP came to be the most successful OS for Microsoft after it overcame its teething problems (which were seen by some to indicate a Microsoft death spiral). Now it's recognized as a highly stable, flexible, and robust system. Properly maintained, it is more stable than OS10, which if anything has become less stable. Vista is another big step in kernel development, security, and user functionality. It figures to be at least as successful as XP as hardware and software support improves. But this is lost on Apple fanboys who pretend that Windows hasn't really changed fundamentally since the 9x days. There isn't even a valid security argument in favor of Mac anymore. There's nothing intrinsically more secure in the code, and the big three trademark apps have all been shown to be vulnerable. Safari is the leakiest browser since IE6. 2007 marked the first occurrence, albeit very limited, of viruses in the wild attacking OS10. Apple has been marketing like crazy while sweeping its problems under the rug. As older, less secure versions of Windows pass from the scene, the Mac OS is likely to be targeted more often.

Windows 7 looks to add a Linux-like dimension of flexibility and the long-delayed WinFS. Is Apple ready to compete?

I don't put too much stock in what students think is cool as a portent of future trends in technology. It's about peer pressure, not functionality. Peer pressure dissipates away from school. Apple chic is a heavily hyped fad that is of a piece with an economy that is just now rediscovering the law of gravity.
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by polaris13 April 1, 2008 8:25 AM PDT
Don is so off the mark its pathetic. Apple might be "cool" but the truth is the PC is a better platform across the board. Ever try to upgrade your Mac? Can you get ALL the software for macs that you can get for PCs? Apple is a computer company right? Why get into the MP3 player biz? Cause you can't make it on just computer sales. Thats why. A computer company whos biggest cash cow is a music player is going to take over the industry? PLEASE!!! Apple products might be good but they're not the best. Plenty of better MP3 players than Ipod. Iphone is coll too but not the best. Mac book air?? Where's the cd player apple? You can't even change the batteries yourself on most mac products, you have to pony up more $$ to have apple do it for you.

Yeah most college grads say they want a mac. The lemmings think that way. But in the end they will buy a PC because it does more, has more support, you can upgrade it yourself and you can get any piece of software for it.

Its interesting that apple named their cash cow Ipod. Because I find most followers of the cult of macintosh to be pod people. Following the herd just to try and be cool.

Apple & microsoft started about the same time. History has proven who the public thinks has the best product for their needs. Get over it mac boy!
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by polaris13 April 1, 2008 8:31 AM PDT
Don is so off the mark its pathetic. Apple might be "cool" but the truth is the PC is a better platform across the board. Ever try to upgrade your Mac? Can you get ALL the software for macs that you can get for PCs? Apple is a computer company right? Why get into the MP3 player biz? Cause you can't make it on just computer sales. Thats why. A computer company whos biggest cash cow is a music player is going to take over the industry? PLEASE!!! Apple products might be good but they're not the best. Plenty of better MP3 players than Ipod. Iphone is coll too but not the best. Mac book air?? Where's the cd player apple? You can't even change the batteries yourself on most mac products, you have to pony up more $$ to have apple do it for you.

Yeah most college grads say they want a mac. The lemmings think that way. But in the end they will buy a PC because it does more, has more support, you can upgrade it yourself and you can get any piece of software for it.

Its interesting that apple named their cash cow Ipod. Because I find most followers of the cult of macintosh to be pod people. Following the herd just to try and be cool.

Apple & microsoft started about the same time. History has proven who the public thinks has the best product for their needs. Get over it mac boy!
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by Kornbeef April 7, 2008 12:38 AM PDT
Wow, you obviously know nothing about macs and are just a talking mouth, sorry. I upgrade my mac all the time, mac pro, easiest thing ever, and I have owned 5 windows towers before. No messy wires to fumble through and no hidden chips to find.

Yes you can get all software for the mac, boot camp! I also enjoy crossfire, you don't even have to reboot, windows pop up just as if you were using XP.

Oh and the company cant survive off computers so it creates the ipod, well then what's the Zune?

I have a mac laptop, i turn a lil button on the bottom and the battery comes right out, its like that on all but the air, which a slick computer and to get that they had to make sacrifices. Just because Apple makes one computer thats targeted at a certain audience, don't judge all their products as the same, makes you look ignorant.

And im sorry, but if your main arguement is that windows is better for having more a following to sell software too, then don't say that Apple people are followers, makes you kind of a hypocrite.

Maybe you should think before talking?
by cyberDJ-2038765336053745013836 April 1, 2008 7:28 PM PDT
Of course, this all depends on which part of the tech industry you are referring to. Some would say that Apple already dominates much of the tech industry.

I would never judge a company's "dominance potential" based on how well it can goose the stock market when it releases a product.

For me, Apple surly deserves its time on the sun.
However, I feel that Apple is always 1-2 years behind where I think they should be.

Some examples:

The iPhone should have been 3G and business-ready from day one.
Macs should have been running on the Intel platform 10 years ago.
iTunes should have been DRM-free long ago.

Apple dominating the tech industry would be a shame because they are too much like Microsoft these days; greed-driven and selfish.
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by gconnery April 3, 2008 5:34 PM PDT
Apples are more expensive?

I think that often they are, but I figured it was reasonable to check.

We just got a Dell XPS M1330 laptop, which is very similar in size, weight, features, etc to the Apple MacBook. Both have 13.3 inch LED backlit displays at 1280 x 800, Intel Core 2 Duo processors, built-in webcams, magnetic latches and similar dimensions.

I thought I would price out similar systems. Because the MacBook has fewer choices (only 2.1 or 2.4GHz processors while the Dell has 1.83 thru 2.6GHz, the MacBook has only 120, 160 or 250GB drives at 5400rpm, the Dell has everything up to 320GB 5400rpm and higher speed 200GB 7200 rpm drives, an SSD drive even, both offer Intel graphics but the Dell can be configured with an NVidia GeForce 8400, etc), I chose common configurations. Which means that Apple is getting credit for all the stuff it includes that you could leave off your Dell if you wanted to save money. Or you could buy a more expensive Dell that would be faster than a MacBook, with a bigger/faster disk and faster graphics and longer battery life. Etc. But anyway, the systems should be generally comparable the way I configured them.

I configured both systems in White, with 2GB of RAM, Intel Graphics, 160GB drives, 2.4GHz CPUs, 802.11n, bluetooth, and similar 55/56 WHr batteries. I also added iWork for the MacBook and Works Plus 2008 for the Dell. You could save $79 on either system and just use Open Office. Or you could spend $50 more on the Dell and get Office Home and Student. The Dell also has a 15 month subscription to Norton Internet Security, since you need that on a PC, though it was a $0 adder. I also added 10GB of online storage to make the two systems comparable.

The Dell has one year of in home service, parts & labor and 24x7 phone support included. The Apple only 90 days of support, presumably carry in to an Apple Store (though I'd prefer that myself, at least for the 90 days). Increasing the Apple Warranty to be similar would cost $249, so I left this off, but the Dell has the better support/warranty as a result.

The MacBook was $1,447.95 and the XPS M1330 was $1,652.

Advantages? The MacBook has the mag safe power adapter, the Dell has a smaller power brick. The MacBook has firewire. The MacBook is 1.08" thick vs. the Dell's 0.87"-1.33". The MacBook has gigabit, the Dell only 10/100. The Dell is lighter at 4+lbs to the MacBooks 5.

Draw your own conclusions.
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by pandaslist June 20, 2008 4:41 PM PDT
I think that Microsoft is the most powerful company in the world.
Apple is trendy, quality and just had a facelift but the real worldwide domination of any industries can only be done by microsoft!!!!
You guys should check out this website it could help you in knowing who is really the most powerful company in the world:

http://www.themostpowerfulcompany.com
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by pandaslist June 21, 2008 9:57 AM PDT
Of course Apple has done a great job coming back into the game and Microsoft does a great job at staying in the game....but saying tha Apple will soon be the most powerful company in the tech industry is not rationnal. They can move closer to fashion than real tech, they're commercial but not technical....
I think the most powerful company is Google and they will take over both of the giants...
You should check this out to make your own opinion and see if Apple can rivalize with Microsoft:
www.themostpowerfulcompany.com
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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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