Just when I think the tech press can't come up with any Apple topic more stupid than what they've already done, I discover I'm mistaken. This column may be at least the "winner" for the coming week. Even as "click bait", it's apparent the authors have no intention of developing a reputation for anything other than writing inane articles regarding subjects about which they're clueless. How do their employers survive when they continue to pay money to such incompetent people? I included the comments because most, but not all, of the commenters appeared to have a brain and some made worthwhile comments about why computers may still be needed for the foreseeable future.
tl;dr - Computers are a "last century technology" so Apple should stop making computers.
Why Apple Should Kill Off the MacDitching its most-refined brand will allow Apple to focus on products that represent the future
Apple took in the highest revenue for its Mac line ever in the quarter ending in January, yet the Mac accounted for the lowest-ever proportion of overall revenue.
By CHRISTOPHER MIMS
June 14, 2015 6:44 p.m. ET
Apple Inc. has the kind of “problems” few companies in history could dream of.
It’s riding a suite of best-selling, high-margin goods that throw off so much cash the company has room to try pretty much anything. I honestly hope Apple is, as rumor holds, attempting to upend transportation by working on a car. How else would you, as chief executive, spend Apple’s mind-boggling $195 billion in cash on hand?
But Apple is still people, and its leaders have only so much time. The recent promotion of design chief Jonathan Ive and the division of many of his previous duties among a pair of deputies testifies to the fact that Apple’s remit has vastly expanded since he designed the iconic Bondi Blue iMac in 1997.
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Which is precisely why Apple should kill off what is perhaps its most-refined brand: The Mac.I realize this is heresy, but if you’ll indulge me, I think you’ll find it a useful exercise in thinking about both what makes Apple such an exceptional company and how hubris is the ultimate downfall of all empires.
At last week’s Worldwide Developer Conference, Apple’s annual confab for the faithful, it was hard not to get the impression that the company is stretched thin. Early presenters blew through lists of new features for Apple’s major platforms, starting with Mac, then iOS (Apple’s mobile operating system) and finally the Apple Watch. The keynote wrapped with a somewhat incoherent introduction of Apple Music, Apple’s new streaming service.
The world’s best tech companies can be the best at two things at once, maybe three. Google Inc. is search, Android and ad platforms, plus a long tail of commitments that sometimes feel like someone’s pet project. Amazon.com Inc. is Web services, retail and grand failures like the Amazon Fire Phone. I could go on—Microsoft Corp., Samsung Electronics Co. and Facebook Inc. are also prime examples—but my point is that
no matter how many resources a company has, there is only so much it can do better than anyone else on Earth.In the first interview he granted after taking the reins at Apple, CEO Tim Cook said the DNA of Apple is a “maniacal” focus on making the best products in the world. “Not good products, or a lot of products, but the absolute best products in the world,” he told Bloomberg Businessweek.
To fulfill that promise, Apple is soon going to have to make the best PC, smartphone, tablet and wearable in the world. And if analyses by developers are correct, the best set-top box that also runs apps, when it releases a new Apple TV. Plus, you know, a car.
On top of that, in our connected world, making the experience of these products the best means Apple has to overcome its traditional weakness, which is cloud services. Apple is still hard at work on its own Maps software, plus enhancements to iCloud, for storing documents. And at some point it will have to clean up the mess that early reviews have declared Apple Music to be.
Something’s got to give. Showpieces like iMacs with screens that have more pixels than any PC ever (and four times the average selling price of a PC) are impressive, but what is Apple trying to prove?
Is it really a good idea for Apple to continue to put resources against being king of a last-century technology?I realize there is money at stake, of course. Apple doesn’t release its margins on Macs, but in 2013 analyst Horace Dediu calculated that
Apple was making more profit on Macs than the top five PC vendors combined.But let’s put that in perspective. In the quarter ending in January of this year, a funny thing happened at Apple. The company took in the highest revenue for its Mac line ever, yet the Mac accounted for the lowest-ever proportion of overall revenue. Apple raked in $6.9 billion on 5.5 million Macs, just 9% of overall revenue. This would be a crazy thing to say for any other company, but
Apple doesn’t need this revenue.What the company does need, and like all ambitious companies occasionally strays from,
is focus. If the iPhone is just coming into its prime, the iPad is an immature platform and the Watch is in its infancy. Yet Apple continues to invest in one-of-a-kind feats of engineering like the Mac Pro, which ships in volumes that are a rounding error on pretty much everything else Apple makes.
How much more competitive could Apple make its other efforts if the designers, engineers and executives behind Mac are redirected? And just as important, what if the developers who create for OS X had no choice but to move to things that actually represent the future? Even a company as mighty as Apple gets to be the best at only a handful of things. So is it going to be PCs, phones and their operating systems? Or will it be phones and the rest of the dematerialized post-PC computing infrastructure—wearables, cloud services and all manner of screens as thin clients—to which the company has already committed itself?
Apple is an exceptional company, and it is at a crossroads.
Is Apple a tech company, or an experience company? Does Apple make computers, or does it make consumer goods? In a world in which the cloud is increasingly the hub of everything individuals and businesses do, and our mobile devices its primary avatar,
what on Earth is Apple doing running victory laps around a dying PC industry? Personally, I’d rather see Apple push the envelope on what’s next.
—Follow Christopher Mims on Twitter @mims or write to christopher.mims@wsj.com
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OldestReader RecommendedWilliam GlasheenWilliam Glasheen 9 minutes ago
Well this article makes so much sense.
In other news... human evolution just took a turn. From the next generation forward, humans will no longer have spinal cords. Who needs em anyhow?
And for the record... The real waste in money is an electric car, or any car for that matter. Without a generational leap in battery technology, Apple is going to be throwing money down a massive black hole. Electric motors are old, old technology. Affordable fast-charge batteries which let them travel long distances don't exist. With cheap oil available for the foreseeable future, these are just toys for rich people.
Masaaki HamaguchiMasaaki Hamaguchi 11 minutes ago
Myopic article:
Apple changes our lives by providing novel experiences. It comes as a whole package where Mac is an essential element. Needless to say, symbiosis not only lets each element thrive but makes the entire system evolve.
Only if he knew....
Abhishek SinhaAbhishek Sinha 13 minutes ago
Here is a simple reason why the term 'Post PC era' is a marketing gimmick, and misleading at best. Any device other than PC has a big problem, which is 'standardisation of input', assuming that computing is the sum total of 'Input & Output'. Companies are failing to see this simple premise, that of all the PC users, have combined standardised learning of 30 years or so of providing inputs to a computer (keyboard and mouse i.e) its like speaking a language.
Until there is a cost-effective & as effective solution that can help match the ease of input that we have on a PC, for post PC devices how can there be a 'Post PC Era'? Can we even begin to compare the ability to create high quality something new reliably on a post PC device, as opposed to a PC.
Tim knows that Siri is only a few trick pony and is far from being perfect, & he also knows that if apple created a perfect offline Siri then that will require a bag-full of storage space, which defeats the purpose anyway.
Charles KesslerCharles Kessler 4 hours ago
This nonsense is why he is a writer and not working at Apple.
Anthony AaronAnthony Aaron 3 hours ago
@charles Kessler
… he doesn't seem to be working all that well at the WSJ, either -- just collecting a check.
Barry MazorBarry Mazor 4 hours ago
All you're really pointing out is that it's tough to fit all that into one set of presentations. So what?
C CookC Cook 4 hours ago
Apple makes most of the gross margin on the desktop, so they can continue to innovate. Wintel is a zero margin hardware business, with little incentive to build a quality product.
My 6 year old Mac desktop will sell for about 40% of the original sales price on eBay. I would have to pay a toxic waste fee to have a 6 year old Wintel machine carted off.
The world still needs desktops, so Apple should continue to make them.
Roger BrownRoger Brown 2 hours ago
@c Cook
I DIY upgrade my Microsoft desk top, mainboard, CPU, RAM, HDD, graphics card every 5 years for about $600. Parts removed to local computer rebuild charity or recycle. Beats your Mac costs.
Zach JonesZach Jones 2 hours ago
Are you inferring Windows is equal to Mac OS?
John MayJohn May 1 hour ago
@roger Brown @c Cook Im not impressed.
WARREN DEWWARREN DEW 38 minutes ago
@roger Brown @c Cook Your labor is free, I take it? Mine isn't.
Paul S. BoyerPaul S. Boyer 4 hours ago
Sorry, Mr. Mims, but your reasoning makes no sense. A profitable line like the Mac is profitable no matter how well the rest of the Apple products are doing.
I just added a new internal hard-drive to my iMac. It was a chance for me to look inside. What a beautiful piece of equipment! I use it every day. Apple is the only source for the Mac, and it makes other personal computers look crude and tasteless.
The Mac is the heart of Apple, as well as its roots. You can always hire more engineers! Those working on the Mac are not causing other projects to be neglected.
Steve W. BellSteve W. Bell 4 hours ago
paul S. Boyer Correct Paul the article makes no sense. Apparently the WSJ downsized their staff to the point where there is no editor to review the quality of the articles they are publishing about technology. I feel like they should lower the price of the WSJ if they are going to throw this kind of junk at us.
Mario SegalMario Segal 3 hours ago
yes lets keep speculating- when you see how well they integrate with your phone you understand why - I can get a windows PC of course but it is not integrated with my iPhone
Anthony AaronAnthony Aaron 3 hours ago
I'm guessing that the author has never started or run a business in his life. He sounds too much like an ivory tower demagogue.
One of the places that Macs still have a sizable presence is in video production and editing -- you can't do it on an iPod or an iPad for professional video. Sure, you can edit your iPhone movies on one, but serious video content creators utilize Macs.
Serious computing still utilizes Macs - and, as stated, Apple still nets more income from its Mac line than 'the top 5 pc vendors combined.'
Stick to what you do best -- whatever that is -- and let Apple continue to create and shape and dominate the world in which it exists.
Felipe ZavalaFelipe Zavala 4 hours ago
One word to describe this article: Clickbait.
Charleen LarsonCharleen Larson 1 hour ago
I was thinking of a similar word. Started with "chicken" and ended with "it."
Fred SteinFred Stein 4 hours ago
Terrific click (not thought) provoking headline and article.
Dear Christopher,
If you don't live in Silicon Valley come visit. Macs are everywhere in the start-up world. Even a friend who is Android first (last and nearly always) codes on a Mac.
Now walk to the other side, enterprise. With IBM's help, Apple retakes the enterprise with iOS and OS X devices. IBM wraps the devices into a package with Cloud and end-user support for a fixed per head per month price. IBM loves the incremental revenue and control due to the Mac.
Steve W. BellSteve W. Bell 4 hours ago
I have a better suggestion: the WSJ should find a different role for Mr. Mims other than technology columnist. Perhaps writing weekend columns about gardening, wines, or the modern kitchen where he can still regularly make extravagant unsubstantiated claims while doing less damage and creating less annoyance?
The statement "Macs aren't the future" is pure hyperbole. There is no logic behind this article which isn't of sufficient quality to be published in even third-rate computer rag. The Mac is a work of art, runs circles around Windows machines, and the last thing we need is for Apple to kill them off. None of the arguments presented here make any sense or hold up.
I miss Uncle Walt. He knew what he was talking about!
Charleen LarsonCharleen Larson 4 hours ago
Bravo, Mr. Bell.
Bryan LopezBryan Lopez 3 hours ago
Christopher, see what happens when you upset the Apple fanboy base! It is why Apple can make the sort of margins that it does.
However, when a better phone comes along - and it will come - the "who, what, where when" articles will go into overdrive.
john sullivanjohn sullivan 3 hours ago
Only in America could someone write that $6.9 billion of quarterly sales isn't a business worth keeping because Personal Computers are a dying business. What idiocy.
Selling 60,000 Mac's per day isn't a business worth investing in, get real!!
Andrew HolguinAndrew Holguin 3 hours ago
Dumbest analysis I ever read, Chris needs one of those mouse head transplants, can't be any worst than what he is working with right now.
Chris DelatorreChris Delatorre 2 hours ago
Some people buy Iphones for the same reason they buy designer handbags, to show them off to the world. They are status symbols. It's part of the reason why Apple TV isn't going to happen, you can't carry around a 50 inch $4,000 TV to show your brother-in-law. Maybe killing the Mac would fit a strategic initiative to be a company of "bling" that can be shown to others.
Jon RosenbaumJon Rosenbaum 2 hours ago
Nobody kills off my MAC.........nobody!
Pavel GatynyaPavel Gatynya 2 hours ago
I love my Mac pro don't want anything else. What are you talking about? I even care less about iPhone
Alex HillAlex Hill 2 hours ago
Welt this "article" is pure click-bait nonsense. People on Facebook and other sites will see "Why Apple Should Kill off the Mac" and flock to the page, hits will go up, and then they can justify advertisers paying more or at least current prices. At least we know that the WSJ still has a grasp on internet economics.
Andrew EvansAndrew Evans 2 hours ago
The author of this article is 'avin a larf, innhe?
Harold FletcherHarold Fletcher 3 hours ago
As an international tax lawyer who must regularly write more than a tweet in multiple languages (and as someone who can install a complete Windows office network, including servers and networks from bare metal and DVDs), I can assure you that nothing other than a Mac offers the seemless linguistic transition on the fly (even using MS Office, which I do). Though as the writer below states, that may have a lot to do with OSX.
If only Microsoft would re-write Excel for the Mac so that it gives an experience relative to speed and large spreadsheets that is equivalent to the Windows version... But that's not Apple's fault.
I am happy to pay more for the long lived, low maintenance and very versatile computers that are Macs.
And I would truly hate to see them go...
JOHN CAMPJOHN CAMP 3 hours ago
This article is basically clickbait -- but then, it worked with me. :-)
I think what Mr. Mims could be missing is that Apple doesn't have a whole bunch of products -- it has (depending on how you look at it) only one: the OS and its associated apps. The various flavors of the OS are converging, across the line of hardware products, and Microsoft demonstrated long ago that it's the software that counts, not the hardware. (Though this article may have gotten a lot of Apple fanboys in a twist, the fact is, the Mac hardware is pretty much exactly the same as Windows hardware, though in prettier packages. I have nothing but Apple hardware, and have had trouble with it, just as I did with Windows stuff, when I had that. I came to Apple for the OS, not the hardware.) As far as this new car idea is concerned, or the TV, I suspect the hardware is not going to look much different than other cars and TVs -- but their operating systems will be *very*
familiar.
Timothy D. NaegeleTimothy D. Naegele 3 hours ago
@timothy Ruhl, while there are lots of great comments in this thread, perhaps yours takes the prize:
"How can I get a job writing senseless articles on topics about which I have not a clue?"
Wonderful! :-)
The Journal has dumbed down its staff, and this article is a perfect example. Also, in the sports section, John Paul Newport normally never writes any stories about golf unless there is at least one mention of Tiger Woods—even though his career has essentially collapsed.
Rory McIlroy won the Wells Fargo Championship at Quail Hollow, breaking the existing tournament record with a 21 under par total, including a final-round 69, for a seven-stroke victory over the other players.
Yet, the Journal did not even mention this great accomplishment by the world's number one player.
How pathetic!
Timothy D. NaegeleTimothy D. Naegele 3 hours ago
Mims should stick to his knitting, and not try to advise Apple . . .
Lots of us have been Apple owners for more than 20 years. The Mac fills an important niche in the product lineup.
While I use a MacBookPro, I would be tempted to buy a Mac too, because of its larger screen. Businesses, such as law firms, need and buy the larger screens.
My former college roommate had never owned an Apple product in his life. Then, he went whole hog and bought iPhones, iPads, and Macs.
When new buyers become part of the faithful, this is often what happens. :-)
Also, Apple is NOT MS or Google, thank God, and never will be.
. . .
P.S. Apple does not need to work on a car. Without government subsidies, the Tesla would go the way of the DeLorean, and probably will anyway.
See
naegeleblog.wordpress.com/2010/09/27/the-economic-tsunami-continues-its-relentless-and-unforgiving-advance-globally/#comment-7283 ("US To Launch Blitz Of Gas Exports, Eyes Global Energy Dominance")
kelvin leekelvin lee 13 minutes ago
I am not so sure if Apple Should Kill Off the Mac. But after reading this article, I am convinced that CHRISTOPHER MIMS should kill off his career as a WSJ writer.
Jaremi ChiltonJaremi Chilton 17 minutes ago
This advice is akin to a man looking at one's foot and saying, do I really need that pinky toe?
Aditya JainAditya Jain 24 minutes ago
While I cannot say, I fully agree with you. I do understand your perspective. However, I would like to point out that the way Apple does business is very different from the other companies you sighted for not being able to be good in more than 2 (at best 3) "things". All these companies treat all the things they do as different line of businesses. Apple, on other hand, has highly integrative approach towards how it goes about developing multiple products. This is reflected not just in how these products work together to create great eco-system, but also in how small progress in each brings other products forward. I am sure they learned a great deal about how to work with metals during development of past products -- learning that will be immensely valuable for making a car (pure speculation here). I also bet once they make car, they will have different ways of making Macs and iPhones.
Steven ESteven E 30 minutes ago
I agree with other posters that this "opinion" is lame and without a real understanding of the numbers, Mr. Mims is writing for click-throughs. Just because the Mac is a niche for Apple doesn't mean it still doesn't matter. Unlike the mobile business, Intel does all of the work on the microprocessors, and it pretty much does anything Apple asks for. With so much leverage from its supply chain in the hardware, and an O/S that is mature and requires only incremental investments, the Mac business ROI for Apple must be huge. Besides, the PC market isn't exactly dying, but even in a slightly declining market, Apple is taking share and more importantly, it owns the vast majority of the profit share.
DAVID CORSIDAVID CORSI 37 minutes ago
Hey I have an idea! The author probably should contact Warren Buffet and explain to Mr. Buffet that the Coco Cola Company should get rid of that bothersome drink they call Coke.
WARREN DEWWARREN DEW 41 minutes ago
Pretty sure giving up on the watch would make far more sense than giving up on the Mac. If anything, they should be pushing the Mac to corporate customers, which would easily triple Mac revenue.
As for the profits, how about giving them back to stockholders instead of blowing them on a car?
DAVID CORSIDAVID CORSI 41 minutes ago
What a dumb article. The author would fit in well with the "experts" in Washington.
DAVID WOODBURYDAVID WOODBURY 42 minutes ago
Yet another weak column by Mims.
Ray BattsRay Batts 49 minutes ago
Senseless article. The Mac is a very useful product those who need the computing speed. It probably takes the least amount of Apple's energy compared to anything else, as it is a mature, evolutionary, rather than revolutionary new product.
Richard TavisRichard Tavis 59 minutes ago
Apple should buy Greece. More romantic then just backing another car company. iAthens. iOuzo. Get it all...
Peter MartinPeter Martin 1 hour ago
This article makes no sense. I have 10 macs in my business from desktops to laptops and they all are very valuable to my business. The Mac business is still a very large business and without it Apple would be like every other company that just makes Phones and Tablets. Just a senseless article and amazing it's in the WSJ.
Paul BillingsPaul Billings 1 hour ago
This article should definitely get the iSheeps blood pressure up.
Ray KungRay Kung 1 hour ago
For every failure you mentioned, a company needs to try multiple prototypes to test the market. Be it Newton or Elsa or Apple TV etc.... As bad as the margin for Apple iMac business, it acts as revenue stabilizer.
Microsoft didn't break into the gaming box until xbox 2. Nor did Samsung did well with it first dip into the feature phone market in mid 90s. Afterall, samsung wasn't able to shine against Sony trinitron until the birth of the LED/LCD age.
Amazon was testing the water when it first releasing web services. And google phone software project started as a pet project as well before it took off.
Ray LauffRay Lauff 1 hour ago
Apparently, Mr. Mims has never used Windows (or has and just doesn't know any better.)
For if he did, he would know why it's a better world with the Macintosh in it.
Thom McCanThom McCan 1 hour ago
Apple wants to control its developers, retailers, customers, entertainment, etc.
The world is not big enough.
Apple is the New Microsoft.
David O'FlynnDavid O'Flynn 1 hour ago
Betcha Apple is heading for a breakup.
jerome rathskellerjerome rathskeller 2 hours ago
Love Apple and love the Mac.
John WettersJohn Wetters 4 hours ago
I think Mac computers are essential to the Apple ecosystem. They are used by Apple developers for iPhone software development.
ALAN SEWELLALAN SEWELL 4 hours ago
@john Wetters Exactly. There is a large market for desktop computing and probably always will be, just like there will always be a market for big-screen TV's.
I can't imagine any informed person advising Ford and GM to give up making trucks just because they've started to do well with crossover SUV's. Most companies differentiate their products to serve a variety of market segments.
Timothy RuhlTimothy Ruhl 5 hours ago
How can I get a job writing senseless articles on topics about which I have not a clue?
Venkat VenkatramanVenkat Venkatraman 5 hours ago
It is an interesting idea but in my view, Apple is not wedded to any one form factor or any one product. It is not focused on market share in the PC business as many analysts still fail to grasp. It quietly killed off iPod. In my view, Apple is making the best products that run on the Apple OS ecosystem--that today includes the Mac OS and IOS. But tomorrow, those two OS may converge and there will be a set of products that are running on the software platforms. They could be Apple TV set top boxes, tablets, phones, watches, PCs and other newer ones we have not seen. Macs allow Apple to innovate with new features that could then migrate to other devices.
--
The different app stores may converge too in the future with features such as Continuity across the different devices. So, let us not look at Apple through the lens of 'products' but through the lens of OS and App Stores. If they can make them seamless, consumer experience will be superior to Google, Microsoft and others. @venkat Venkatraman