Thursday, April 12, 2012

Apple Wireless and Apple Computing....Too big too Fail?

          Should the government break up Apple?  With their value crossing over $600 Billion and their overall command of the consumer computing sector and the domination of wireless devices, why hasn’t it happened yet?
         
          They broke up Motorola!  They broke up AT&T, why is Apple any different?  Is the government waiting to see if Apple comes down to Earth in the next 2 years?  When AT&T was split up they broke into many different companies, Pac-Bell, SBC, and Verizon.  Once Verizon got big enough, the government allowed AT&T to start putting itself back together.  So now there is natural competition between AT&T and Verizon, which is AT&T!
         
          If Apple were to be split, it would probably go something like Apple Computing and Apple Wireless.  One would think that Apple Wireless would be bigger because it would have the iphone and ipad and all that’s goes along with it. 
         
          Apple is so big right now they could just buy AT&T straight out, scary isn’t it?  Well when a statement like that can be made, you know their are a monopoly!  At least ExxonMobil has companies that are comparable in size (Chevron, Royal Dutch Shell, Petrobras).  You could make the argument that Apple has companies comparable in size as well (Microsoft, IBM, and Google).  But the difference is, Apple makes much different products than Microsoft and Google.  The oil companies all produce; yes you guess it, crude oil!
         
          Recently, as in yesterday, Apple was sued for colluding with the major publishing houses on pricing.  Is this the first of many to come?  If Apple has this much pricing power and leverage over not just technology companies, but over all other companies, they need to be split right?  If they did it to AT&T shouldn’t it be just a matter of time before it gets done to big daddy Apple?

AppleSanity!

Will Apple Explode?  Will there be another behemoth to knock them off the block?  Throughout the history of Apple, they have always felt that they were not the enemy, rather Microsoft.  In recent years, the tables have turned drastically. 
With the introduction of the ipod, Apple took the world by storm and has since redefined how we receive media today.  I grew up in an era where paying for music was taboo.  There were multiple sites to download music for free in a timely fashion.  We all know the number one site for that was Napster (thanks Metallica).  You know for a group that says they were just a couple of fans that started a band they sure don’t act like it!
The real monkey wrench for any company trying to go after apple is not their devices, rather the large anchor they have for all their media that we all know as itunes.  The itunes store and cloud have revolutionized the revolution by making it very simple to buy media and to store it in a wireless environment.  Imagine this, I have had an iphone for many years now, I love it as does everyone else.  But, from time to time I do check out other devices because change is inevitable.  I really like the Samsung Galaxy Note which is a cross between a tablet and a phone (has a much larger screen and a magic pen).  It was fun to use, moved very fast.  Nevertheless, I was still missing something.  I was missing the itunes store.  I need to be able to plug my phone into my computer and drop media onto it.  This is the largest problem any competitor will run into.
They need to figure out how to make media transfer seamless with another store I suppose.  Amazon has attempted to do it with the android store.  It’s just not good enough though.  Many years ago, when Microsoft and Cisco ruled the world and Apple was still just an afterthought that made these things called Macintosh, those two companies combined at one point were worth $1.2 Trillion ($600 Billion a piece). 
Today, at current market value, Cisco was under $100 billion in the last couple months and Microsoft has been making somewhat of a run this year, now with a market cap of $257 Billion.  The point is that Apple crossed $600 Billion a day ago.  If history repeats itself Apple should be worth at least half of what it is by 2020.  Or they will become the first Trillion dollar tech company ever.  Just keep this one important note in mind, Apple does not make one single product that anyone NEEDS, they make a slew of products that everyone WANTS.  Exxon produces a product that everyone will NEED FOREVER.