Blogs

Apple Convergence

September 28th, 2007 by Mike Mann

Until recently, I didn’t have much of an affinity for Apple, other than for Steve Jobs himself. I thought my coworkers spent too much on their boxes, I didn’t like the hype, and I thought the graphics on my PC were just fine. I have never used a Mac or studied much about it, just press releases and hype. But I am big on convergence, as you can see by WashingtonVC’s Internet vision.

Anyhow, I finally realize that Jobs positioned Apple to be the all round preferred hardware provider for the future of technology (a nice position). For me, “convergence” is the future of technology. Steve has it down regarding consumer electronics and PC related devices. Jobs’ strategy will disintermediate dozens of large wannabe leaders.

The exciting part is how it all subtly, but powerfully, comes together. First of all, the PC or Mac can download any multimedia, including anything made by consumers worldwide just minutes after production. Each piece of content is easily indexed on your own PC and online, given the appropriate tagging.

Next, Apple created the iPod, which is mostly a hard drive and display with full multimedia capacity and an easy, user-friendly interface. Obviously a popular invention. Now Apple has launched the iPhone. Given we bought Phone.com, even before they came up with iPhone, I am a big believer and promoter of NextGen and VoIP telecom, which is naturally convergent with many other Internet connected apps.

Apple then announced the iTV, an obvious product to go within their array. This is when I realized how it all came together and how advanced they are. The beauty of this strategy is that in the future, a TV, Phone, iPod and PC will be almost indistinguishable, besides the ala carte features chosen, the display size and placement.

The iTV can wirelessly beam the very same content to the iPhone with ease, which can also beam the same content to another enabled device like the iPod or PC, and back and forth with no loss of data integrity. They are interchangeable and therefore convergent–as it should be–and not coincidentally just like WashingtonVC’s service strategy.

Apple also opened up the content flow by creating iTunes, an easy way for publishers to deliver bits of licensed content and collect fees. Obviously a good idea. You should realize that they will try to open up licensed online television distribution too–another thing I’m a huge fan of. In other words, you will log in and download the shows you want easily and legally.

iTunes, iTV and others will continue to leverage the opportunity to fill technology applications with uploaded user controlled content like YouTube. Apple will also make all applications user-friendly, I’m sure, and allow most of the content pieces to be easily managed and altered, be they TV shows, phone calls, or rock concerts.

This is why I am suddenly a fan of Apple. Maybe it’s a good time to review the stock valuation again.

Peace.

Mike Mann