Showing posts with label macOS. Show all posts
Showing posts with label macOS. Show all posts

Monday, April 2, 2018

Apple and in-house chips for MacOS

Lots of commentary today around Bloomberg's story regarding a switch by Apple to in-house chips (from Intel) for the Mac.


Perfectly consistent with Apple's stated goals (control the whole stack) and addresses some issues (waiting for Intel, instruction sets sometimes not even needed, etc.).

Of course, transitioning won't be trivial but I wonder if a solution is viable given Apple's unusual business model and execution.  Simply said, why couldn't Apple just include BOTH an Intel chip and an in-house chip?  The costs of a processor seem to be in the $25-40 range.  Given Mac pricing, it seems doable to just build in both and use the appropriate processor as necessary.  In fact, notwithstanding Apple's adherence to strong margins, they could even swallow some (or all) of this and treat the extra cost burden as sort of a down payment on the future to derisk the transition for a couple years.

I know this is the exact opposite of Apple's usual course of taking the hard decision and stepping firmly into the future (or at least Apple's vision of the future) but, if viewed as a choice between emulation software and simply including the hardware, maybe this is more user friendly (and thus entirely consistent with Apple's approach)?

Monday, March 20, 2017

Apple iPad Pricing

If Apple is sincere in its stated belief that iPad is the future of personal computing (i.e., “PCs aretrucks”), Apple’s relatively low pricing strategy makes great sense.  Setting up an established base of users can create a virtuous circle of application development to defend against an assault by an alternative future.  And setting such a base up quickly makes sense if establishing that defensive wall is the goal.

I say "relatively" low pricing strategy as I know iPad prices are not low.  But they are lower than one might expect of Apple.  This is a company that still wants to make sure it makes money when it sells something and so maintains healthy unit profit margins.

To balance these competing goals (margin and scale), Apple must keep its prices realistic and this has resulted in a pace of advancement that is likely slower than what Apple is actually capable of (iPads could probably run macOS if they had to).  But that is fine if advancement isn’t necessary to grow the market or, put alternatively, if the market can be grown more quickly through price than with specifications.