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Apple iTunes Simply Needs a “MA” Rated App Section

Posted by metroxing in Monday, February 22nd 2010   
Topics: Apple, iPhone    
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The recent iTunes App “banning” of salacious-sexual content apps makes sense on one level. It is understandable as these titles would randomly appear throughout the store in games & entertainment and it’s understandable you don’t want clients, or your kids stumbling across it …  or even if you’re showing off the iTunes store, it might not be the best showcase.

But as an adult, I don’t mind an extra door to more mature themed materials but I do not want an outright ban. First, because what are ‘community standards?’ There are people up in arms over the Sports Illustrated swimsuit issue … or even the ‘drinking beer’ apps … so why not place them into a MA section that requires an extra step?

It could be as simple as incorporating it into the next iTunes upgrade. These are the signin accounts to the iTunes Store on this computer – which ones should have access to the “MA-Theme App Store?”

Or perhaps a one-time extra signup process.

“The iTunes MA-Rated Store requires a credit card link access and cannot be used with an iTunes pre-paid card.”

So the first time you access it – you are required to re-input a credit card number. Then the account is setup with a credit card (as many people do now) – meaning only those 18 and above have access to the MA-Theme Store. After that, the responsibility rests with the parent or adult of anyone under 18 – just like the rest of everything.

Just as some communities allow anyone over 18 to attend a strip club (since alcohol is not allowed) or that SAFARI lets you surf the web freely on an iPhone or iTouch (and not to mention it’s your iPhoto, you can load any photos or photos or videos you choose), this is a simple and straightforward mini barrier – if you willingly choose to look at or purchase MA-Themed material, you know what you’re doing.

I can understand Apple wanting to draw the line at nudity but sensuality or anything that might be deemed sexual? That’s too far of a line to draw … let’s let adults be adults. This way, it’s there in its own separate section. WE take full responsibility. Plus, I think the app developers would be happy to know that the people who want to peer in the MA-Theme section are happy to do so freely.

Of course, the obvious is that there are many MA-rated TV Series from the premium channels and lots of albums with language that fall under the MA rating … so why not apps and in their own section with one extra signup step?

The Apple iPad Won’t Affect NetBook Sales – That’s a Good Thing

Posted by metroxing in Saturday, January 30th 2010   
Topics: Apple, Mobile    
2 Comments

Many people seem to be confused about why netbooks exist and because they are selling well, they think it’s because of just random pent up consumer demand for “fully-featured” functionality at an “extreme” portability form factor.

This is not true because there is ONLY ONE factor that sells netbooks.

PRICE.

Of the dozens-hundreds of PC Windows manufacturers selling netbooks, one if not the ONLY profitable company (Acer) admits their margins are 2%.

That means they make 2 cents for every $1 they bring in.

Apple’s margins are around 35-40% and I cannot imagine the iPad margins will be much different in the long run (it might slightly lower in the short term).

Is Acer selling a netbook at $299 to make about $6 because they want to be your pal and give away their product because they love you so much?

Or is it priced at the ONLY point they can sell them at and squeak out a profit?

YES. They are selling at the HIGHEST possible they can and still make a profit.

The end result facts are very simple. If a company has higher margins but their market is STILL GROWING, clearly the price is acceptable to consumers.

Many if not most PC buyers don’t grasp the simple concept why Apple product buyers are willing to pay more. It is very simple. Apple product buyers believe they are worth more so they will pay more.

You can attribute some of it to marketing, sure but that is always a short term gain. Clearly, that is NOT the case as Apple has been growing exponentially continually over the past 8 years. There is NO marketing that is that good. Spending money means nothing. Microsoft has spent about $200 million dollars advertising the Zune or Verizon & Motorola spent over $100 million just in the last quarter alone selling the ‘Droid phone yet have not announced any sales figures … marketing only works when the product and its message is consistent and speaks to consumers correctly.

But back to netbooks, why are netbooks the ONLY high growth segment of the PC market?

Are netbooks faster that regular laptops or desktops?

No.

Do netbooks have special new technology screens or multi-touch?

No. (some have better screens and touchscreens but it’s not consistent)

Do netbooks have some bleeding-cutting edge technology not available in any other PC form factor.

No.

Well, what could explain their growth?

Are they cheaper than laptops?

YES.

For the most part and certainly the under $400 netbooks, they have older processors, smaller screens than laptops, and smaller storage capacity.

Does that sound like a STEP FORWARD or a STEP BACK?

Why don’t netbook manufacturers put a Core7 chip in their netbooks with OLED touchscreens and a 320 GB SSD hard drive in it?

Because no one wants a $2,500 netbook?

EXACTLY.

People do not want a netbook for portability AT ANY PRICE.

They ONLY want a netbook because it’s cheap.

Because the WINDOWS OS has so devalued the personal computer experience for them – it’s like an alarm clock OS – yea, whatev – as long as I can get online to surf the web and send emails, maybe type out a note, who cares what the screen size is or if it’s slow. I am NOT willing to spend more than the absolute minimum.

Because if they were interested in the netbook for its portability, the great growth would be in the $700 or $1,000 dollar netbook, right?

Why are you willing to go backwards?

What other consumer electronics product’s ONLY growth trend is one where the product has FEWER FEATURES and SLOWER functions?

NONE except for WINDOWS PC’s.

Because again, people are so fed up with their experience on a $700 laptop, they are now only willing to spend $399 or even $299 just to get in and be done. They are even willing to trade SPEED, STORAGE & SCREEN SIZE for PRICE because bottom line – “Paying more more for the WIN PC experience is NOT WORTH IT.”

That’s why PC buyers cannot understand why Mac buyers will pay 3-5 times what they are willing to pay … because Mac personal computers buyers do NOT LOATH their personal computing experience. It’s as simple as that.

And clearly in the past 16 months, any delusion that Apple purchasers are only purchasing because the economy is going great so why not pay “extra” for ‘marketing and world class look,’ – that theory is out the window – as Apple continues to grow at a 20% rate while even companies that sell necessities like food are hurting – again, why? Apple products offer VALUE above & beyond just PRICE.

It’s not exactly an unknown concept – you’d pay $50 to eat in a nice restaurant, would you do so at your corner McDonald’s? It’s not the same experience but in many ways, similar, right?

But because Windows PC experience is only within the PC realm where, yes, it is ONLY about component costs because really, how different is a Dell than the Best Buy PC other than the 15 stickers on the front? They simply cannot believe there is anything really different (or “better” out there) and of course, clearly, they’re not dumb so I guess they presume everyone else is dumb? It’s like someone who only buys 5-day old bread at the bread outlet store and thinks we’re suckers to pay 3 times the amount for fresh bread.

And the proof is in the sales growth of the Mac and the iPhone. Because if ALL buyers of personal computers and smartphones were only after the cheapest possible price, then Mac & iPhone sales would be flatline or show minimal growth OR the best selling Apple products would be the cheapest one in the product line but again, NOT the case.

All of this is important to how they see the iPad.

It’s NOT for you if you’re merely searching for the lowest price for an @10″ screen device. If you’re solely going through a feature list and price (and of course, believe that all “features on a list” are equal), then the iPad is NOT for you – that’s fine. If you’re happy to turn a 10″ $299 netbook on its side to use it as an ereader – GREAT. That is your free choice to make.

If the tradeoff is running WINDOWS, that’s fine for you. You are free to make your purchasing choices as you see fit in regards to bread, laptops or cars but do not presume that having used a netbook, you can be dismissive of other choices or that they MUST BE EQUAL to your experience.

Clearly, the netbook is a huge compromise and ONLY successful when it’s priced below $300 and that its users are willing to give up speed, functionality and screen size.

Netbook buyers do not really care about the brand – how much would it entice them to buy one with the Walgreen’s brand with the EXACTLY the same specs as an Acer one? $5 less than Acer?

Netbooks are sold on PRICE alone.

The iPad is NOT a direct competitor to netbooks.

It’s a different choice to consider when price is NOT your ONLY factor.

As a consumer, you are free to go by PRICE as your ONLY basis for choosing a product but it’s NOT how everyone likes to shop. By that measure, it’s like eating a school cafeteria pizza as a 7-year old and saying there’s no point in spending more on a pizza slice since it’s all just a wheat based crust thing with tomato sauce and shredded cheese …

A billion people would beg to differ and that is the comparison of a netbook to the iPad.

The Apple Tablet-Giant iPhone Needs, Wants & Do-Not-Want

Posted by metroxing in Wednesday, January 20th 2010   
Topics: Apple, Books, comics    Tags: Apple, tablet
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Yes, we do not need a tablet.

Yes, some people need a tablet and their needs are mostly being served – whether it’s a niche market or for artists who want to draw with a stylus – they need a tablet but NOT the one Apple is presumably delivering in 2010.

Yes, a flat personal computer with a stylus input is nice but so NOT NECESSARY and that’s why there has been no market for it so far. Prior, the problem was the LED screen was either weak, washed out, heavy in weight and or expensive … also missing was an interface that made sense for a computing experience that is “flat.”

Without mocking the obvious shortcomings of the OS developer from the Pacific Northwest or Scandinavia – the iPhone was clearly the FIRST TOUCHSCREEN interface that was not only appropriately responsive but more importantly – made sense. Now, I’m NOT saying the iPhone OS interface is perfect – just a quantum leap from before.

And only Apple would be gutsy enough to create an interface that essentially had FOUR settings. SWIPE. TAP. SCROLL. HOME-BACK BUTTON.

Unlike other attempts at designing a touch interface, you were not required to decipher a bunch of icons to use the interface or hope you did not lose your stylus. Again, not saying the iPhone is perfect as it would be nice if the double or triple tap were consistent across all apps but comparing it it previous touchscreens? It was amazing. And also importantly, it worked. Previously, many touchscreens would just stop accepting input randomly or more importantly, was simply a front end that was weakly designed that if you went further in, eventually you’d run across its GUI interfaced stacked on top of line commands. In other words, ugh.

Clearly, not a problem with the iPhone OS. But that is also a quandary – clearly on a tablet form, you want additional options. Or do you?

So, is there a need for a giant iPhone-iPod?

For some things, the answer is obviously yes. Presumably storage will start at 32GB to 320 GB? That means renting or buying HD movies makes much more sense on a larger screen.

Of course, most people would also prefer to surf on a larger screen and presumably, tabs are also back.

Certain applications (besides the obvious games) would also make sense on a larger screen such as TRAFFIC MAPS-GPS – especially if you could break off part of the screen and zoom in while keeping the larger view on another side of the screen. And of course, it would be nice to keep multiple apps running in their own window simultaneously – be nice to be able to resize and move them around the screen so you can watch a MLB live game while double checking your flight info in a smaller corner view.

As someone who has over 160 apps, it is time to bring over the FOLDER feature.

The current iPhone screen holds 16 APP ICONS, does this new screen hold 64? Isn’t that a bit too much? Do we want resizeable APP ICONS? So, we can get anywhere from 16 honking HUGE icons to 100?

I think the key here is that the tablet iPhone must delivery an appropriate user experience for a giant iPhone – that it must delivery MORE just as the iPhone delivered more than the iPod scroll wheel experience – that clearly Apple did not just add features to the iPod user experience in making the iPhone but reinvented everything appropriate to an iPhone – same with a “GIANT IPHONE.” That the OS that worked fine as a music player OS was NOT an acceptable one for a phone and Apple took the next step forward on the iPhone and again, must take another step forward.

For instance, on the iPhone, you accept you cannot look at many screens at once, it would be pointless on a 3″ screen but if the screen is 9″-10″, we will expect more. It’s even more than just multiple apps running – it will have to be closer to a the next step forward – that I can “tear” off pages to put in a folder. Or perhaps, travel itinerary info. Yes, I can bookmark multiple locations in MAPS but it has to redraw it everytime, the GIANT IPHONE will have to allow me to either ‘tear off’ that page and store in a folder or something along the use of tabs. Or for instance, one of the real estate apps, I want a personal database that I can access instantly and “offline.”

in other words, I want all the extras that come with a larger footprint and larger screen.

One aspect wanted on this new device will be an e-reader that people actually want. Yes, there are quite a few e-readers already out but much like the Mp3 market or the smartphone market, clearly the devices out there only fulfill a small portion of the real market needs. Monochrome screen is too 20th century and every review of the Kindle, the Nook and the others point out some deadly flaws – slow and/or poor user interface (UI). Two flaws that just beg for the Apple touch.

In one sense, it’s pretty obvious, a magazine or a newspaper page is much like a web browser page but the problem is simply replicating a magazine or newspaper so far has been unsatisfying and until that problem is resolved, a dedicated e-reader is POINTLESS. My magazine and daily newspaper are portable and cheap so unless you deliver me a QUANTUM leap in user experience, then why bother?

Let’s look back slightly – what was portable music like prior to the iPod. Before ANY mp3 player, you were restricted to audio cassettes or a portable CD-R player – nice but you had to expend time to create your own or of course, listen to a few tracks and then switch AND if you did not carry that disc or cassette, you couldn’t switch to another kind of music.

Same with the cell phone – we wanted GPS directions, to look up info on the web, to jot notes or to store info … and of course, play games … but with a 1″ screen as one option or to buy some super expensive phone with a larger screen BUT with a some super expensive data plan and a crappy UI interface – what was the point UNTIL the iPhone delivered exactly what we wanted.

The e-reader needs are much more vague. Yes, we want portable & complete information an there is an appeal to have access to that info without having to guess what issue it’s in or remember having to carry it with us BUT since I can buy the paper equivalent for a dollar to $5 dollar for mags & newspapers, it’s not exactly like not having my 100 CD’s with me … OR even a book. Most books costs $10-$25 dollars and after reading it, if I do not like it, I can still shelve it to look smart if I buy a book like THE SOCIAL HISTORY OF ROMAN ART or give it away or better yet, re-sell it. Printed matter is fairly portable and mostly disposable. I have read novels and left them on planes – not caring to carry them back with me if I deem it unworthy to sell or giveaway. I lose that option with an e-reader and you can argue that in many public transportation choices, you do not want to be waving around a $1,000 tablet – versus a $10 book that is most likely not going to warrant anyone’s attention.

Bottom line, an e-reader has to deliver MORE than what I’m getting now.

Another point to newspapers and magazines is that I can tear out the pages I want to scan them … are the publishers willing to give that to us in electronic form?

There are many mags being offered on the iPhone that look nice if you are going in a page-by-page chronological order but in 99.9% of the cases, they offer me no more interactive elements than a printed version – can I save the article? can I save it as printable-PDF version and store it elsewhere – can I drag off a quote and/or more importantly, can I drag off or copy a photo? If they are scared to offer me that feature, why not just go to web version or even scan my printed version?

But that is only the beginning. They need to take advantage that the e-reader should offer us virtually unlimited space – that articles do not need to be edited to fit the costs of printing but also, maybe some people do not want to read 40,000 words on the topic so every feature should be offered in summary, print & expanded versions. We need more photos and more illustrations and perhaps even video … and or access to more indepth information. And it has to be SMART linkages and not the current web version where random words like PERSONAL COMPUTER are underlined with rollover definitions of what a personal computer is and CLICK on the BING link to learn more about this ‘personal computer’ thing – how stupid do you presume we are?

Yes, I know some publishers are offering this online but it is so poorly designed and basically just an excuse to shoehorn in more ads.

And speaking of which, we do not mind ads but it’s going to scary from here on in because we really only want ads for things we are interested in. One of the brilliance with Google is their AdSense links are much more precise – if I type in Greece, I do not get ads for cooking grease as prior to Google … but these new e-reader ads have to take another step forward. We understand that print ads have to be vague to capture a broad swath of the audience as it’s impossible to target specific interests within the broader male 18-49 high income audience and you don’t want to be so exclusionary that we never see ads for things we “say” we’re not interested in because as with most new technology, people cannot conceptually grasp it, they say no. (surveys in the late 1990’s had ‘most’ people saying that talking on a cell phone was stupid and pointless and that would never be something they want to do EVER).

But basically advertising has to take a giant step forward to maintain it relevance. The last thing I want to do is flip through STATIC ads on an e-magazine/newspaper. As noted, print advertisers have done or have attempted to create a web link but so far, it’s NOT ENOUGH. Interactive ads that just point to the front page of the advertiser is STUPID. I can do that.

Advertisers have to be flexible to deliver that ad to the way people want to absorb the ad online and on an e-reader. Whether that’s a boring coupon link, a local link, a detailed & specific link or more multimedia features or better implementation of that ‘augmented reality,” that’s what makes advertising interesting and useful. Yes, on the surface, people will say they want no ads but they understand the need for ads AND really, like ads – such as the Super Bowl ads, people don’t mind ads if THEY ARE ENTERTAINING and USEFUL … such as shopping apps or ordering pizza apps, etc, etc … but print advertising must step forward to the 21st century … it’s NOT EASY and there’s no obvious answers but repeating and copying a technology from 300-400 years when the first newspaper ads rolled off the press is NOT AN ANSWER … just as the first ads were chieseled on a wall somewhere … times change, let’s look around and make that leap forward instead of just repeating the past.

For publishers, it is scary because elements are out of their immediate control and require MORE WORK – do they open up the archives, does my subscription entitle me to read EVERY article that publication has ever posted and is that scary? Or should it be? How much control do they have now?

And that applies to publishers of books – scared that Amazon has priced e-books at $9.99 but like the music industry, they don’t think of their savings – there’s no guessing how many to “print.” And of course, any that are not sold have to either be marked down (if it’s a disaster) or returned if it just sell not as well as hoped – ALL monies that comes out of their pocket AND there is no used book market to affect new sales … and that’s a consideration also but of course, it’s easier just to claim that every ebook sold is X dollars difference from a copy sold via the traditional method but no printing costs, no shipping costs and no returns. And of course, the current situation is that every additional page costs money to print but additional pages for an eBook? Negligible. It’s difficult to insert photos or illustrations into a typical printing plates but electronically, no problem or as I read a lot of historical books, I would GLADLY pay extra for interactive features. For instance, maybe after reading a book on Columbus voyage, I can simply click on an interactive map of his voyage and by tapping on the line showing his ships progress, a page pops up leading me back to that page so I can re-read that or something … but again, that requires more work but the opportunity is there.

And to apply the social network opportunities, why not online book clubs? I’m sure it will have a built in microphone and maybe even a webcam?

As is with the graphic novel-anime-comic book industry. It has in some senses been marginalized because you require specialty knowledge to sell it or your retailers are unable or unwilling to carry the entire spectrum of releases … and adding to that, it’s intimidating for a newbie to step into one of these stores or even a Barnes & Noble to know here to begin. The audience is out there and now is an opportunity. DON’T BLOW IT! Now, instead of trying to decide which ones are worth “publishing,” – as long as you can create an “eBook” version of it, why not? And as with other offerings, why not add sound effects (as some versions already have) and again, NO paper printing costs, no distribution and no returns. Face it – comic books, anime & graphic novels are spendy at $3+ per volume/issue – part of that is its limited printing & associated costs but there are many I am interested in reading but not necessarily interested in owning so this is the perfect opportunity. Right now, this portion of publishing is marginalized because it’s intimidating for newbies to try out but this is the perfect opportunity – why not read Volume 1 for $.99 and decide whether to continue without leaving the house.

And to continue while we have heard from major magazine publishers, there are dozens of minor magazine publishers with specialized content that is limited by distribution or a reluctance to subscribe because you don’t know how long they will keep publishing. Or international publications?

In the beginning, beyond the gadget freaks (like me) who will want one – the next part is really up to the publishing industry to finally realize that they have to stop marginalizing THEMSELVES because of printing costs, postage costs, distribution issues and the LAST CENTURY of looking at the marketplace. Just as the first guy who put color in a magazine or the first guy who created regional issues … the world is changing … hurry up and change with us!

And back to the hardware. I have no worries it will be interesting and cool from Apple. It will be nice if 3G was available at a reasonable price … and speaking of which, my feeling is there will be a really low end model that sells for $799 and the one you want for $999. :-)   , with a subsidized internet access (presumably), it’ll be like $649 and $849 … this will be priced far enough from the monochrome Kindle (@$489) – why price it any less when you’ll have all these extra features for “only” a hundred dollars + some?

But of course, the $649/$799 version might only have like 32 GB of storage but the $849/$999 will have like 128GB so you will easily justify the higher cost as the better value but for the first 6 months, Apple gets to say – as little as $649 :-)   (before discontinuing it).

And of course, the pricing will be that it won’t affect sales of the MacBook or the low end MacBook Pro – sure, the “Tablet iPhone” will be a few hundred less but no full size keyboard and no DVD, etc, etc … um, Apple knows what they are doing when it comes to pricing.

As with the iPod, the iPhone & the Mac – yes, you can buy an ultracheap “thing” in its-this category but then it’s not from Apple and it’s not an iPod™, not an iPhone™ and not a Mac™.

But of course, expectations are at an ultra high level. It will have to be QUANTUM leap as the iPod, the iPhone and the original Mac from its predecessor …  so we shall see but see you on the 27th.

Twitter Weekly Updates for 2010-01-04

Posted by tizmanian in Monday, January 4th 2010   
Topics: Uncategorized    Tags: social media, tweets, twitter
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  • With the focus on local content, Fwix's Adwire should become hugely popular http://bit.ly/2PzAce #
  • Anyone ever try to rewire an old mac serial ext keyboard to USB? I love the action on that old keybrd but don't want to bork it up #

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Why the Droid is No iPhone Killer & Really Just a Hobby

Posted by metroxing in Monday, December 28th 2009   
Topics: Apple, Gadgets, iPhone    Tags: android, iPhone
9 Comments

The problem with most newspaper technology writers and even many technology “analysts” is they briefly read the AP Headlines before scribbling out some output to earn a paycheck … the reality is why many newspapers are failing both financially and their readers – they don’t bother doing any investigative work or any kind – they’ll just pick up a phone to get a quote from an “expert” and call it a day.

But here are TEN Reasons Why the Droid won’t make much of a dent in the iPhone marketplace.

10) ZERO DOLLARS For Google

Right now and through 2010, Google makes exactly ZERO DOLLARS from “Android.” Thar’s right, with EVERY sale of an Android powered smartphone, Google makes exactly ZERO DOLLARS. Sure, at some point in the future, they will start to make some money from ad revenue from web surfing on the phones and eventually also the Android web store but now that they are also developing hardware, the bottom line red ink of Android is only going to grow. Of course, with Google’s current cash flow and the expenditures of Android, it’s not going to be a problem but the key is while Apple makes $600 (with subsidies and NOT including iTunes) on EVERY PHONE sold (@60 million iPhones and counting) – you can do the math, Google makes ZERO. That is why Android can gain all the market share it wants – Apple could care less. Google makes ZERO DOLLARS essentially and later on, the Android ecosystem is going to generate more revenue but it’s certainly not going to generate $600 for Google with each one sold. Bottom line – Google offers a FREE MOBILE OPERATING SYSTEM – nice for cell manufacturers but  ZERO revenue for Google.

09) Android is NOT a unified operating system.

EVERY PHONE running the Android operating is DIFFERENT. And not only that, with every telco, they will either offer or not offer access to Google’s “official” storefront. Every telco & every manufacturer will create a DIFFERENT Android phone. It is like the “free” desktop OS, Linux. It’s technically all Linux if you want to lump it under one umbrella but like Linux, the HTC Android is NOT the Samsung Android and NOT the Verizon Android. So lumping Android under one umbrella as one unified user base is incorrect.

08) No Unified iTunes.

Along with not being an actual unified OS and user base, there’s no unified storefront – no iTunes. DIFFERENT telcos and different manufacturers will each offer different and varying degrees of access to a storefront including Google’s – what this means is there’s no one central point for buying, previewing, and syncing. It is a DIFFERENT selling point but not a better selling point than One World, One iTunes.

07) The Audience.

Most newspaper writers and analysts blindly presume the audience is all the same – and that it’s a zero sum solution in that a person who chooses an Android phone is exactly the same as one who chooses an iPhone. They are not. The buyers of Android phones are doing for three purposes now. A) They loath Apple and believe since the iPhone is popular, only they are smart enough to see above the “fray/hype.” B) They are buying into the belief it’s really an open-source phone and C) The Problem with this audience.

A) Just as with the iPod, there are always a % of people who believe they are smarter than the rest of “us.” If something is “popular,” “well reviewed” or labeled the best, they want no part of it – whether it’s a movie, a restaurant or technology. They are contrarians. As with the iPod, you can always find some other player with one feature that was not on the ipod as with the iPhone. They will ignore all of the well-liked aspects and useability of an Apple product to focus on some small missing feature and claim we are all morons but this is nothing new – that’s just part of human nature. There will always be 20% who think the Earth is flat – no point in wasting time to chase them.

B) In some ways, some of the B group are also the A group – but more technology minded – they believe the Android phones are like Linux, an open source “project.” Well, technically yes as anyone can jump in to program the Android phone if you have the interest and skills but no, Verizon will not randomly add or delete features without hacking into the phone and presumably voiding your warranty and service agreement so of course, Google wants to sell it as an “open source” project but the reality is that it’s not really. Plus, this group is not really that large – yes, they are vocal and certainly internet savvy but you just have to look at the actual Linux market. How much revenue is actually derived from Linux SOFTWARE sales? (not Linux servers as you are obviously getting hardware as part of your purchase).

And C) the Implications of this audience – bottom line, they are WAY LESS INCLINED to buy anything. They simply believe (correctly or not) that they can create what they want or hack it in there. So, whether it’s the APP STORE – I’ll just write my own and only find a free version or MUSIC – I’ll just rip my own or worse, just download it for free – same with movies and TV shows. So, the Android audience is NOT the iPhone audience. They have arrived at their buying decision from two separate mind’s and pocketbooks.

This is why there is great growth in the number of APPS in the Android APP STORE but sales are weak.

06) The Marketing.

Part of the beauty and brilliance of Apple is that there is ONE marketing message for ONE product. That is why there are no AT&T ads that directly say the iPhone – Apple does not want AT&T to muddle their marketing message. AT&T can talk about their network and so forth but actually say the iPhone – no. That is already COMPLETELY DIFFERENT with the Android phones. There are about 10-15 manufacturers and 3-4 telcos (plus prepaid coming in 2010?) who sell the Android just in the US – that is about 50 mixed messages right there by the end of 2010. By the time this is over with the next holiday season, that’s 50 times X campaigns over the year each with their own message how they are the best “Android” phone. The result? Consumer confusion. Wait, this HTC Android phone is better than the Moto Android phone? Is Android the phone that falls from the sky? Is it this one? Or why does my Android phone not have that feature?

05) Marketing Cluelessness.

Many detractors of Apple claim it’s all about “hype.” But the reality is Apple is maybe the LEAST HYPE ever. What are the iPhone ads? A guy’s hand tapping on buttons – showing off plainly WITHOUT MUCH HYPE what this product does. You see exactly what you get – there’s is nothing hidden of even distracting. The only other iPhone ads featured people on the street on a black background saying why they like the iPhone. Contrast that with the bizarre Transformer ads of the “Droid.” Of course, it is honest in the sense that the paid actors in the spot had no idea what the ad was for but great for the ad agency. They got to bill Verizon or Google for $8 million for :30 seconds of a stealth fighter dropping bombs – honestly, who really thinks that’s how their cell phone was delivered? I can picture the account executive selling the $100-million campaign as the DROID as the bomb and the bombshell but the reality is NO ONE believes that to be true. The people who are contrarians or tech geeks will buy one regardless but for the mass market – it was 100% WTH or worse, WTF? Apple must’ve had a good laugh also with the Palm ones with the creepy woman who implied your phone will change all red traffic lights to green? Who believed that one? Again, Apple is 100 times smarter. They show off the phone with a HUMAN HAND tapping on the screen so you see how it works – no promises that the technology is so far in the future a robotic hand is required to use it. Or really, anyone rely on Whoopi Goldberg, a basketball coach and some guy with a bunch of tattoos to know which phone is best? At this point, after the iPhone, people get that touching the screen will activate functions on the phone – you need to move beyond trying to win advertising awards NOT for art direction and special effects and try to win awards for EFFECTIVENESS … you’ll notice that after spending nearly $200 MILLION dollars and months later, Verizon, Google, and Palm have not yet even announced 1 million in unit sales of their flagship phone? How long did it take Apple to sell a million phones? 3 days?

04)  The Bargain Basement.

Related to the last three is that the end result – with so many mixed marketing messages, clueless marketing and off-target hype, with so many players trying to sell and shill their name, their service and their version of the Android phone – it will become everything the iPhone is not – a mixed hodge-podge of marketing messages that cancel each other out and people will shop for Android phones like any other phone – by price. It is already starting now with Verizon offering 1 Android phone free with purchase of another.

And of course, what’s the inherent audience connection with Google – that it’s FREE. So, while no one is expecting a “free” cell phone – there’s much work to get done to dis-associate Google with “free.” So while linking with the Google name is good in one aspect, it’s not so good with another.

03) Google Not a World Class Designer.

The Google phone (coming in 2010) will matter very little. First, while Google is a powerhouse in search and search ad sales, they know nothing about user interface and design functionality.

All you have to do is look at the the “MORE” dropdown menu of Google’s front page – it is a hodge podge of icons shapes & dimension (some 3D, others from WIN 3.1). Are there any two Google apps with even a remote usability resemblance? Anything think Google Mail & Picasa is from the same company or while Google Earth is great fun – anyone really think every function is well thought and designed – what if you had to pay $99 or $249 to access it?

Google is a great company. I am not knocking them and I am glad they have been around to knock down the others and keep them competitive. I pretty much use Google search exclusively and Gmail is my internet mail app of preference but the bottom line is we like Google because it’s free and it’s fast – which is ALL GREAT but to take the leap to say they can design the best phone UI? That’s a big leap and so far, their examples on the Android are what you expect. Nice on many aspects but compared to a world class UI design company? Not in the same league. They have the advantage is that search will fund this foray where they give away the programming tools and even offer to help design but at the end of the day, they can certainly out do Nokia, MS, Palm & RIM but for now, they are not in the league of the #1.

02) The Halo Effect of Apple is Too Strong.

Consumers are not morons. On the right side is Apple who have now proven to the last generation with the iPod, iTunes, the iPhone and the MacBooks that they are a trusted name who will deliver what consumers want – design, functionality, performance, style and convenience. Apple is also smart to deliver that first BANG YEARS AGO in the smartphone market so when the Google phone comes out in 2010, not only will they have to earn the trust that Google can deliver a consumer product and phone OS but how old will the news be? What’s the point of being two years late to the dance? Touchscreen is old news – what else have you got? When Google comes out with their touchscreen phone, won’t people be thinking about the iPhone 3.0? And most likely the BANG of the giant screen iPhone-tablet version? Won’t it be old news? Sure, it will have some tiny feature that the iPhone might not have but will be more like the Zune, simply a contarian purchase? Again, it’s not that the Google name is worth nothing, it’s just that it’s not worth APPLE value until it’s proven … it’s one thing to go out on a limb to buy an alarm clock but a cell phone? If it’s $49? whatev but if you’re chasing the FULL VALUE-HIGH MARGIN train that Apple drives – that’s another story.

(It’s also worth considering that every pre-teen (presumably) iTouch user is then pre-ready for the iPhone – one click is all it takes to copy over every app, song, movie, TV, show from the iTouch to the iPhone).

01) All Too Much.

Analysts have to keep in mind what Android is. Android is a FREE programming mobile OS that will help Google attach itself to a generation of cell phone users who are transitioning to the mobile internet. As of now, Google makes ZERO DOLLARS from it and the payoff is years away. It’s a smart play, of course since they can afford it but the Android market is not the iPhone market. The iPhone is a FULL REVENUE model for Apple – not to mention a unified marketplace and structure with iTunes. The people who choose the iPhone knows that they are getting the best reviewed smartphone AND it’s from Apple AND they can use it with iTunes. The most likely scenario is that Android’s buyers will be choosing it mostly on price and this not as high of a revenue generator as iPhone’s buyers who know exactly what they are getting + iTunes. Part of that is the inherent “open-source” buyers and contrarians who comprise of its audience but also when there are hundreds-thousands of mixed marketing messages, it will all get lost, diluted and at the end of the day – people who are bargain hunters of smartphones will settle for Androids, the flagship smartphone of telcos not selling iPhones. Google also has to move the needle from being only associated with, “free,” while Apple has proven in this tough economic time, consumers are willing to pay for inherent value.

And merely measuring market share as a comparison would be like measuring apples to oranges – literally.

Each iPhone sale is $600+ dollars to Apple. Each Android sale is a X dollars to Google – where X is a few in 2010? Android is a bigger strike against Nokia, MS, Palm & RIM.

Unlike Apple, they are in the same boat of small margins since they have to fund their own OS AND sell phones at a discount.

Nokia has managed 10 years of total incompetent smartphone OSes so it seems hard to believe they will wake up and see reality. By the time they copy the iPhone OS, it will be 2015. MS is done since WinMobile is no better than Android and it costs money to program their OS and WinMobile has about as much love with consumers as every other MS OS and the Zune. Palm might be a nice OS but it’s 10 years squandered and they have no cash left to raise their voice – Nokia would be smart to buy them but Nokia is too arrogant. RIM will continue to win enterprise markets but will continue to see margins erode as the non-iPhone smartphone market will drop to $98 for two phones. They have a bigger problem in that they have to keep adding servers and expenditures to maintain a network – and when it goes down like it has the past two weeks, they get a double whammy – they lose users and have to spend more on infrastructure.

So, as with the iPod, there will be ONE smartphone, the iPhone that grabs the bulk of that cream of the crop marketshare – the FULL PRICE-HIGH MARGIN marketshare as it is the branded one and the trusted one. Meanwhile, Google, Samsung, LG, HTC, Nokia, Palm, Sony-Ericson & RIM will fight between them on a month by month basis for the remainder of the FULL PRICE-HIGH MARGIN smartphone marketshare – climbing a few notches when they introduce the latest competitor the iPhone but falling when another intros a new phone – all the while, the iPhone will maintain its 65-75% marketshare of the best market.

If you measure every smartphone worldwide, sure Apple’s marketshare won’t seem that large but just as today, would you rather have Apple’s iPhone revenue of $600+ per phone sold or Nokia’s of selling more but making only a tiny fraction % of $600?

Twitter Weekly Updates for 2009-12-28

Posted by tizmanian in Monday, December 28th 2009   
Topics: Uncategorized    Tags: social media, tweets, twitter
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  • Looking for affordable 88 key electric pianos. Any suggestions? #

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Twitter Weekly Updates for 2009-12-14

Posted by tizmanian in Monday, December 14th 2009   
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  • My new company just gave the entire staff Flip Video HD for Christmas! Total bonus! #
  • RT @flytip: AT&T is a joke. If they didn't have iPhone, they would be in shambles. CEO Wants iPhne Users to Lmt Usage. http://bit.ly/4B4wrn #
  • Is it just me or is #Vevo just hanging? Launch fail #

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Twitter Weekly Updates for 2009-12-14

Posted by tizmanian in Monday, December 14th 2009   
Topics: Uncategorized    Tags: social media, tweets, twitter
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  • My new company just gave the entire staff Flip Video HD for Christmas! Total bonus! #
  • RT @flytip: AT&T is a joke. If they didn't have iPhone, they would be in shambles. CEO Wants iPhne Users to Lmt Usage. http://bit.ly/4B4wrn #
  • Is it just me or is #Vevo just hanging? Launch fail #

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Twitter Weekly Updates for 2009-12-07

Posted by tizmanian in Monday, December 7th 2009   
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  • evaluating radian6 vs scout labs vs sysomos. Leaning toward radian6 Any favs out there? Something else? #
  • More great food in Jacksonville FL: Clark's Fish Camp. Wacky decor, awesome food. http://bit.ly/6QR9at #
  • Had TWO great meals in Jacksonville FL this week: Check out Chew http://bit.ly/5PzWcK Amazing food in a very cool space and … #
  • RT @martindave: Apple Buys Music Service Lala, at a Fire Sale Price by @pkafka http://bit.ly/7XROf1 Serves em right for killing cd swapping #

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Twitter Weekly Updates for 2009-12-07

Posted by tizmanian in Monday, December 7th 2009   
Topics: Uncategorized    Tags: social media, tweets, twitter
No Comment
  • evaluating radian6 vs scout labs vs sysomos. Leaning toward radian6 Any favs out there? Something else? #
  • More great food in Jacksonville FL: Clark's Fish Camp. Wacky decor, awesome food. http://bit.ly/6QR9at #
  • Had TWO great meals in Jacksonville FL this week: Check out Chew http://bit.ly/5PzWcK Amazing food in a very cool space and … #
  • RT @martindave: Apple Buys Music Service Lala, at a Fire Sale Price by @pkafka http://bit.ly/7XROf1 Serves em right for killing cd swapping #

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