APPLE'S TV DREAM REVEALED: Embarrass Hardware Makers, Stiff Content Providers, Destroy Cable Companies. Over the last several months, Apple's vision for television has become clearer.
Thanks to work by Wall Street analyst Gene Munster on the hardware side and the New York Post's Claire Atkinson on the content and cable side, we now have a pretty good picture of what Apple wants to do: Build a TV set that is much cooler and easier to use than anything else out thereCharge twice as much for itAssemble a "virtual cable company" with boatloads of great content by cutting deals with content providersPay the content providers practically nothingReduce cable companies to "dumb pipes" by redesigning and taking control over the television interfaceCapture a subscription revenue stream that the cable companies now own That seems to be the vision.
Whether Apple will actually be able to execute this vision, of course, is a different story. The cable companies, not surprisingly, assumed that Cue and Apple were smoking crack and told them to get lost. “We decide the price, we decide what content. "... So... Apple’s quarter results visualized. Opinion: Will Siri Change the Rules of the Search Game? There are two hallmarks of disruptive innovation that are commonly misunderstood.
The first is the myth of the “aha” moment that tends to assign disruption to a single instant of discovery and change, when, in reality, nearly all disruptive innovations are the result of long-term trends, research, and investment that finally culminate at an inflection point. The iPad wasn’t invented in a vacuum, but was the result of decades of research, failed attempts, and gradual technology advancements. This doesn’t diminish the value of the innovation, but even the lightbulb was only possible after centuries of accretive science. The second myth is that a disruptive event immediately changes the world.
In fact, it’s only in retrospect that we acknowledge the power and impact of these innovations, which were often under-appreciated at the time. Disruptive innovation is a gradual process with a long tail both before and after the inflection event. Siri is glue. Siri is focused. The model changes. How much does an Apple store cost? Apple loves to talk about its stores.
They do it in every conference call, keynote event and SEC filing. There is a monotony with the repetition of how many they have and how many they are building and how pretty they are. They start to seem like commodities. But if they were commodities why aren’t there any other networks of successful “vendor stores”? The answer is partly in the odd integrated business model Apple maintains asymmetric to every other modular technology provider. The answer is in the economics. To understand the cost of developing an Apple store, we turn again to the balance sheet. The following chart shows the change in that figure quarter-over-quarter. Can we tie these expenditures directly to stores? There does not seem to be much correlation.