Apple’s Middle Age – Stratechery by Ben Thompson


34 bookmarks. First posted by girma february 2018.


Most commentary has assumed that:

Customer wants HomePod
Therefore, customer subscribe to Apple Music
Apple profits
Again, this doesn’t make sense because Apple Music isn’t profitable!

Instead, I think the order goes like this:

Customer owns an iPhone
Customer subscribes to Apple Music because it is installed by default on their iPhone
As an Apple Music subscriber, customer only has one choice in smart speakers: HomePod (and to make the decision to spend more money palatable, Apple pushes sound quality),4 from which Apple makes a profit

Keep in mind, the swashbuckling Apple — the one led by Steve Jobs, not Tim Cook — that looms so large in everyone’s imaginations, couldn’t have had more different circumstance. Jobs was a product and execution genius, but in truth we have no idea how he would deal with the strategy questions facing Cook. Making iTunes for Windows was as correct strategically as is making HomePod exclusive to iOS devices; that the former fits ones’ mental model of how a company “should” operate is a matter of circumstance, not principle.
apple  stratechery 
february 2018 by elrob
Forgive the personal aside, but our family bought some furniture yesterday, and it wasn’t half bad. We’re moving house, and I’m hopeful it will be the last time for a while; given my personal history that is saying something. via Pocket
Pocket 
february 2018 by driptray
iPad: Standalone, but thanks to Apple’s push for unified apps, is immediately rendered more valuable if a customer already owns an iPhone and has bought multiple apps
Apple TV: Standalone, but thanks to Apple’s push for unified apps and AirPlay protocol, is immediately rendered more valuable if a customer already owns an iPhone
Apple Watch: Only works with an iPhone, which means by definition it can only be sold to an existing Apple customer
AirPods: Work with all phones, but better on iPhone, which, conveniently enough, dropped the headphone jack the same time AirPods were announced
HomePod: Only works with an iOS device, which means by definition it can only be sold to an existing Apple customer (with Apple Music as a push)
Apple’s growth is almost entirely inwardly-focused when it comes to its user-base: higher prices, more services, and more devices.
apple  hardware  trends 
february 2018 by dancall
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IFTTT  Feedly 
february 2018 by sbmandal
Apple's Middle Age via
from twitter
february 2018 by fugaz
Lock in. Then squeeze.
s 
february 2018 by jgordon
In this view, Apple Music serves as a “bridge” to translate iPhone market share into smart speaker share; services is a means, not an end, which is exactly what we should expect from a company with Apple’s vertical business model.
Apple  strategy  HomePod  launch  integration  AppleMusic  Stratechery  2018 
february 2018 by inspiral
Forgive the personal aside, but our family bought some furniture yesterday, and it wasn’t half bad. We’re moving house, and I’m hopeful it will be the last time for a while; given my personal history that is saying something. via Pocket
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february 2018 by archizoo
Forgive the personal aside, but our family bought some furniture yesterday, and it wasn’t half bad. We’re moving house, and I’m hopeful it will be the last time…
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february 2018 by alnetu
Forgive the personal aside, but our family bought some furniture yesterday, and it wasn’t half bad. We’re moving house, and I’m hopeful it will be the last time for a while; given my personal history that is saying something. via Pocket
IFTTT  Pocket  feedly 
february 2018 by schmitz
Forgive the personal aside, but our family bought some furniture yesterday, and it wasn’t half bad. We’re moving house, and I’m hopeful it will be the last time…
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february 2018 by disnet
Forgive the personal aside, but our family bought some furniture yesterday, and it wasn’t half bad. We’re moving house, and I’m hopeful it will be the last time…
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february 2018 by joeybaker
Forgive the personal aside, but our family bought some furniture yesterday, and it wasn’t half bad. We’re moving house, and I’m hopeful it will be the last time for a while; given my personal history that is saying something. via Pocket
Pocket 
february 2018 by LaptopHeaven
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Starred  items  from  BazQux  Reader 
february 2018 by stinkingpig
Forgive the personal aside, but our family bought some furniture yesterday, and it wasn’t half bad. We’re moving house, and I’m hopeful it will be the last time…
from instapaper
february 2018 by Shurs
Apple’s Middle Age

For Apple, hitting middle age means a strategy primarily focused on mo…
from twitter_favs
february 2018 by girma