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Thursday, August 14, 2008

When Apple’s Reach Exceeds Its Grasp

Jason Snell

The huge success of the iPod and the incredible media hoopla surrounding the iPhone have transformed the way the world looks at Apple. … The public perception of Apple is that it’s a technology juggernaut with immense power at its disposal as it steamrolls over everyone else in the technology industry while creating one industry-busting product after another. There’s just one problem with that image: It’s not true. In the past year, we’ve seen numerous examples of how Apple’s reach can dramatically exceed its grasp.

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Tuesday, August 12, 2008

Apple: As iPhone Sales Grow, So Do 3G Reception Issues

Eric Savitz

As sales of Apple 3G iPhones continue to grow, there are also increasing reports of trouble with 3G reception on the devices.

Certainly, demand is robust. Lehman’s Ben Reitzes today writes in a research note that “checks indicate” Apple (AAPL) iPhone demand in the fiscal fourth quarter ending September could top his current estimate of 3.8 million units. And he adds that this “bodes well for cash flow,” and for “an enhanced halo effect for Macs.”

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Thursday, August 7, 2008

Should You Pay Twice as Much for a Mac?

Joe Wilcox

I recently got to wondering about Mac versus Windows PC pricing after seeing two HP notebooks on sale at the local Target. One of them, a 14-inch model, the HP DV2946NR, sold for $699.99 and packed 4GB of memory and a 320GB hard drive. Capacity for both features is twice that of the $1,299 MacBook–and shared graphics is 356MB compared with a meager 144MB for the MacBook. I wondered: If Vista notebooks are selling for so little and packing so much, how does this compare with Mac desktops and notebooks?

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Saturday, August 2, 2008

iPhoneDevCamp 2

Adam Tow

This weekend in San Francisco, the second annual iPhoneDevCamp 2 is underway. Whereas the first confab focused primarily on Web applications, this one has a definite native application flavor, thanks in large part to the fact that the iPhone software development kit (SDK) is out of beta and now available for developers.

When the iPhone was released in June, many developers were disappointed by the absence of an SDK for writing third-party applications on day one.

At D5, Steve Jobs explained to Walt Mossberg that Apple (AAPL) first needed to iron out some security issues before they would open up the device to outside developers:

We would like to solve this problem and if you could just be a little more patient with us, we’ll do it.”

–Steve Jobs at D5 on the availability of an iPhone SDK

Fast-forward to the first quarter of 2008, when Apple made good on its promise by releasing an early version of the iPhone SDK. The fruits of the patient developers’ labor was evident at the launch of the iTunes App Store, where 500 free or commercial applications were available to download onto the new iPhone 3G or the original iPhones running iPhone OS 2.0.

No longer were iPhone users confined to using Web applications running in Mobile Safari or resorting to jailbreaking their devices to use third-party programs.

The App Store made it dead simple for every iPhone user to duel their friends with PhoneSaber or satisfy their Dance Dance Revolution/Guitar Hero/Rock Band craving with Tap Tap Revenge, a game which recently celebrated its one millionth download.

At iPhoneDevCamp this year, there’s a greater and more palpable sense of excitement in the air than last year, and it’s reminding me of the time when I was writing applications for another Apple handheld product: the Newton.

While the green device from Apple was not a commercial success–it was surpassed in sales and popularity by the less-capable, yet smaller and more convenient Palm Pilot–the Newton nevertheless pioneered many features we now see perfected in the iPhone.

Fourteen years ago, the Newton could fax, send email and receive pages; the iPhone is a communications powerhouse with 3G/EDGE/Wi-Fi/Bluetooth.

Newton’s handwriting recognition was dramatically improved with Newton OS 2.0 in 1995; the iPhone has fantastic Chinese and Japanese character recognition.

Finally, the Newton promised a day when users everywhere had their own personal digital assistants in their pockets; today, millions of people have chosen their phone to be an iPhone.

Adam leading the Newton protest at Apple headquarters in 1998.

Despite leading the Newton protest at Apple Computer in 1998, I admit that Jobs was right to cancel the Newton. He made the correct decision to focus the company’s efforts on Mac OS, and it’s paid off.

The iPhone, after all, is running a version of the same operating system powering today’s Macs. The release of the initial iPhone raised the bar significantly for mobile users tired of using the same-old devices from Palm, Microsoft, and Symbian.

At iPhoneDevCamp 2, the bar is rising even higher for native third-party applications. If you were excited about the first 1,000 apps, wait till you see what comes out this weekend!

Below are photos from Friday’s welcome reception at iPhoneDevCamp 2. For more information, visit the iPhoneDevCamp 2 web site.

Monday, July 7, 2008

Apple: BMO Capital Ups Estimates on Strong Mac Sales

Eric Savitz

BMO Capital’s Keith Bachman this morning raised his EPS estimates for Apple’s (AAPL) September 2009 fiscal year to $6.36 from $6.21, reflecting increases in his estimates on both notebook sales and iPhone’s average selling prices. Bachman repeated his Outperform rating and $205 price target on the stock.

For the June quarter, Bachman thinks Apple shipped 2.4 million to 2.5 million Macs, providing 39% year-over-year unit growth. For calendar 2009, he expects Apple CPU units to increase 26%, well above the 11.5%-12% growth he expects in the overall PC market.

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Tuesday, June 17, 2008

Apple: Mac Unit Sales Grew 50% in May

Eric Savitz

Apple had a solid May for both Mac and iPod sales.

As Lehman analyst Tim Luke points out in a note today, new data from market research firm NPD shows Mac unit sales grew 50% on a year-over-year basis in May, ahead of the 37% Q2 growth Lehman had expected. Sales of iPods in the month were up 11.6% for the month in units, slower growth than the 14.6% gain in April, but well ahead of the 2% year-over-year decline Lehman has been modeling for the quarter. Average iPods pricing in the quarter was down 4%.

Lehman continues to expect the introduction of an updated line of Mac notebooks ahead of the back-to-school season, including redesigned MacBook Pros and more MacBook Airs.

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Thursday, June 5, 2008

Adobe: Cowen Downgrades on Product Transition Worries

Eric Savitz

Adobe (ADBE) shares are losing ground today after Cowen’s Walter Pritchard cut his rating on the stock to Neutral from Outperform.

Pritchard is concerned about the company’s transition from the current version of its flagship software package–Creative Suite 3–to the coming update, Creative Suite 4. He says that with the May quarter, “the company will reach a peak in financial momentum.” But Pritchard contends that “many of the drivers of growth in CS3 are not in place and in some cases work against CS4 given the significant upgrade activity and price uplift that came with CS3.” He notes that in the case of CS3, there were 24 months between versions, rather than the usual 18. The current version, he adds, benefited from additional demand associated with Apple’s (AAPL) adoption of Intel processors for the Mac.

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Wednesday, June 4, 2008

Apple’s Back-to-School Promo: Buy a Mac, Get Free iPod

Eric Savitz

Buy a Mac, get an iPod Touch for free.

That’s Apple’s (AAPL) 2008 back-to-school promotion for this year, which started yesterday: qualified individuals who buy a Mac from now until Sept. 15 can get a 100% rebate on the purchase of an iPod Touch or an iPod Nano. Under terms of the offer, you get a $199 rebate on the 8GB Nano, or $299 on any storage capacity Touch.

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Friday, February 22, 2008

What Consumer Technology Companies Can Learn From Apple Product Launches

Joshua Weinberg

Apple is widely regarded as one of the most effective companies at launching products today, but some people chalk this up solely to Steve Jobs’s star power.

As a launch consultant, I’ve spent a lot of time analyzing Apple’s product introductions and I have seen that while there is no denying that Jobs is a very powerful element in Apple’s launches, there are plenty of things that Apple does that can be learned and emulated by other companies, small or large.

It all starts with the product

Product launches are not just PR events; they are the last step of a long product-development effort. Start with the product itself. No amount of launch pageantry and flashy presentation can guarantee the success of a seriously flawed product. At the same time, a brilliant product can disappear into obscurity without a carefully conceived launch strategy and a clear marketing message.

Apple is able to generate interest and excitement over even minor product launches because of its reputation for creating innovative, elegant and functional hardware and software. Every facet of the device or code, right down to the industrial design, packaging, accessories and even the product’s Web site, is scrupulously polished to enhance usability, esthetic appeal, and Apple’s overall image as a maker of “insanely great” consumer products. “We make products that we want to use ourselves,” Steve Jobs said at D5.

The obsession with form, fit and finish extends even to the most minor or hidden parts. One of the most time-consuming design tasks of a recent laptop introduction, an Apple hardware manager said, was to make sure that screws on the bottom of the machine did not disrupt the smooth flow of the computer’s aluminum skin–even though most users will never even look at the underside. Compare that to, say, the hulking, mismatched power supply of Microsoft’s Xbox 360 video game console, which looks as if it were originally designed for a Soviet-era tractor.

Even the font choices in Apple’s user documentation and manuals are carefully selected. By crafting a uniform design identity not just for the core product, but also for all ancillary materials, Apple builds a tangible expectation of superior performance and value.

Don’t launch the product until it is ready

Apple rarely launches a product until every aspect is ready for the public; indeed, Jobs has been known to kill a product launch at the last minute because something is not exactly perfect.

A journalist related that he wrote a scathing review of a new non-Apple product and later ran into the product manager at a restaurant. “I’m sorry I had to be so hard on the [product],” he said. “That’s OK,” the product manager said, much to the journalist’s surprise. “We knew we were going to get some knocks.” Then why didn’t they fix the flaws? Too many companies today are willing to accept glitches just to get the product out the door, hoping to patch them in a future version. But will there even be a future version if customers are disappointed?

The “we’ll fix it in version 2.0” attitude at some of its competitors is anathema at Apple. Version 1.0 is as good as it can possibly be; version 2.0 will be even better.

Is your product as good as it can possibly be? If not, perhaps it’s better to delay the launch.

Some companies don’t seem to understand the difference between making technology and making a product. Technology doesn’t become a successful consumer product until a complete, user-friendly experience is built around it. Launch products, not technologies.

Everything is coordinated

When you walk into the Moscone Center for an Apple product launch, the posters outside tout current Apple products. The advertising on passing taxis and buses are familiar Apple themes. The nearby Apple store still promotes the current bestsellers. The Apple Web site is still business as usual.

But as soon as the keynote presentation ends and people file out of the building, everything is new: The advertising on the buses and cabs has miraculously changed to trumpet the new product. The Apple Stores are stocked and ready to sell the New Thing. Apple employees are wearing T-shirts emblazoned with the new message. The Apple Web site is ready with new information and images. New TV ads showing the just-introduced product are already spreading the news.

Everything is coordinated across multiple departments of the company, from factory to marketing to retail to customer support, all for the precise moment of the launch. The achievement is all the more impressive given the simultaneous launches in multiple countries around the globe, and, increasingly, the involvement of partner companies (like AT&T for the iPhone launch).

Such precision and coordination requires a comprehensive launch agenda and clear cross-boundary communications (along with flawless execution) among all key players in the company.

This is the way consumer products should be launched in today’s world of instant communication and nearly instant gratification. As soon as a consumer hears or reads of a cool new product–especially a message reinforced through multiple channels–he wants to be able to buy it and use it. With a few notable exceptions (the iPhone, the Mac OS X Leopard operating system), Apple has products in its stores and well stocked on the day of the announcement. After going to so much trouble to build excitement over a new product, the company rarely wastes the opportunity by telling consumers they have to wait days, weeks or months to buy it. The strategy of announcing a product and shipping it months later is best left to business-to-business products, where long-term budget planning and lengthy evaluation periods are more common.

Rehearse, rehearse and rehearse, because launches are theater

With Apple, preparation for a keynote begins months in advance, and Steve Jobs rehearses relentlessly, right up to show time. Insiders know that if a product does not demo well, even at the last moment, Jobs will pull it from the presentation rather than risk a public flop.

In one keynote in which Apple unveiled a new notebook computer with a built-in accelerometer, to protect the hard drive in the event of a fall off a table, Apple’s head of global marketing, Phil Schiller, had to jump off a 15-foot platform on stage with the computer cradled in his arms. Afterward a reporter noticed a nasty scrape on his arm. Did it happen in the keynote plunge? “No, it was in one of the rehearsals,” Schiller told him. “I can’t remember which one, there were so many.”

Jobs’s predecessor, Gil Amelio, once gave a three-hour Macworld keynote for which he obviously hadn’t prepared sufficiently. His extemporaneous speechifying befuddled, bored and frustrated the audience. The lesson is not about length but about preparation: there’s no substitute for preparation and practice.

The big announcements are important. The little ones aren’t

Apple releases dozens of new products each year, but only a handful of major ones get the full Steve Jobs treatment. Partly this is due to the time constraints on a very busy CEO, but Apple also recognizes that overexposure lessens the impact of even a Steve Jobs presentation.

Everyone remembers the keynotes where Jobs has a blow-out announcement–the “There’s just one more thing” finale has become a signature in his delivery–but there are many other B-level and C-level announcements that are handled with less fanfare by other executives or, in some cases, such as recent updates to the Mac mini, by no formal announcement at all.

Apple saves its biggest announcements for its biggest products. Even when the identity of the new product is top secret, Apple has been known to call major tech journalists to quietly let them know “this is a big one, you should be here.”

In contrast, IBM once flew a reporter to North Carolina for a “major announcement,” accompanied by nearly a dozen PR and executive team members. The announcement? IBM had decided to streamline its PC operations and cut bureaucracy and cost, the better to compete with leaner rivals. The message and the messenger should be congruent. A phone call or press release is appropriate for many announcements. For a new bet-the-company product, however, it’s a safe bet that only the CEO will do. Make the big ones count.

Of course, sometimes there’s pressure to give big treatment to a little announcement because of internal company politics. This may keep a handful of people happy, but in the end it won’t get consumers excited, and could make journalists and the public less receptive to news about a company’s truly important products.

Products have names

There’s a great new restaurant that serves chunks of cold, dead fish mixed with seaweed and artificially green-colored horseradish, on a glop of sticky rice. Sound appealing?
If you’re looking for a lightweight laptop, do you choose the Fujitsu P1610 or the Aspire 9810-6829? (Can you tell by the names that one weighs 2.2 pounds, the other 17.3 pounds?)
Do you already own one of the most popular consumer electronics devices of the 21st century, the M8513LL/A? Perhaps you know it by its name and not its part number: the iPod.

Too many companies find that the product naming processes is not fast or easy so they resort to using model numbers in place of real names.

Apple knows the importance of names that’s why we have iPods, MacBooks and Cinema Displays.

A product isn’t ready for launch until it has a name that customers can understand. DF-20HT is not a name; it’s a part number. The name of a product influences the customer’s response to it. Calling your new device DF-20HT identifies it as a technology, not a product.
This isn’t to say that giving a product a snazzy name like “Vista” or “ROKR” or “Microsoft BOB” will insure its success. But if all the other aspects of a successful product are met, why saddle it with a nerdy moniker that consumers can’t remember or even understand? Shakespeare wrote, “What’s in a name? That which we call a rose 
by any other name would smell as sweet.” But for a new consumer product, DF-20HT stinks.

Use secrecy as a marketing weapon

Influential consumer tech journalists, some who typically write fewer than 50 columns a year, often receive that many new product announcements in their email in-boxes every week. Each email gets at most about five to fifteen seconds of attention. If the first paragraph of the email does not say what it is, what it does, why it’s significant and what it costs, the email goes straight to the trash.

Why is it, then, that these same reporters are willing to drop everything and fly cross-country to Cupertino, Calif., based on nothing more than a cryptic note that Apple will be unveiling a secret new product?

The answer: Apple has learned to use secrecy effectively as a marketing tactic.

At one time, when it was struggling, Apple realized that it could use the element of surprise as a competitive advantage against larger rivals. It caught the computing world off-guard by introducing such innovations as the mouse, the graphical user interface, the 3.5-inch diskette, wireless networking, colors, flat-panel LCD screens, Bluetooth, online music sales, touch-controlled iPods and iPhones, and so on.

Today, despite the fact that Apple’s market capitalization is now bigger than Dell’s, secrecy is even more important. Asian competitors knock off Apple designs and even rumored Apple designs.

But secrecy also generates intense interest in Apple’s announcements, as everyone wonders what new marvels Apple has in its plans. The company very rarely pre-briefs reporters and analysts, but when it does, it’s for a big payoff–like promising a major national magazine an exclusive sneak peek in return for a promise of being the cover story.

Even so, very few of its announcements are pure surprises, in part because bloggers, journalists, analysts and investors scrutinize the company so relentlessly, but also in part because Apple is an expert flirt, and a peerless influencer of the media.

Many companies feel that secrecy is not practical because they need to inform the channel, brief partners and create marketing campaigns. These needs do not make secrecy impossible they just make it harder to pull off. Apple weighed the problems associated with secrecy against the benefits it would deliver and decided on the secrecy route–and it’s been paying off. Any company launching a new product needs to go through the same exercise.

Learn from Apple’s imperfections

Nothing’s perfect, not even Apple’s vaunted marketing machine. Even when Apple makes mistakes with a product launch, however, it provides valuable lessons for any company.

Think about Apple products that failed, like the Macintosh Cube. Although it was a triumph of design at the time, at least compared to the boring beige boxes made by other PC makers, the Cube sacrificed usability and performance in order to achieve its form factor, a textbook case of form over function. Customers stayed away in droves.

Even the Apple iPhone product launch was flawed, despite the sale of more than a million units in the first three months. By waiting just 10 weeks to cut the high-end iPhone’s price by one-third, to $399 from the initial $599, Apple angered its loyal consumer base. Customers angry at a price cut? In this case, yes, because early adopters felt they were snookered into paying a $200 penalty for being Apple’s best customers. Everyone knows that technology prices fall over time, but the timing suggests that Apple knew from the beginning that the iPhone was overpriced. Lesson: Don’t alienate your most loyal customers. To mollify them, Apple issued a $100 credit. Another lesson: It’s expensive to attract new customers, but potentially far more expensive to lose the ones you already have.

Watch and compare

Steve Jobs has promised a year of exciting product announcements, so whenever he takes the stage for a keynote or special event, I’ll be watching, taking notes and comparing how other technology companies launch products. If you’re watching and comparing, I’d love to hear your thoughts.

Joshua Weinberg is the president of the Digital Life Consulting Group, which advises consumer electronics and consumer technology companies on how to make their product launches strong, effective and successful. He has been helping launch products for 18 years. He has never worked for Apple, but observes the company closely.

Thursday, January 31, 2008

Waiting for the MacBook Air Pro

Dan Gillmor

Having seen Apple’s MacBook Air notebook computer up close, I’m as dazzled as everyone else who’s had a chance to examine this delicious piece of industrial design.

Dazzled doesn’t translate to handing over a credit card, however–at least not yet, and not solely because it’s almost never a good idea to buy Apple’s (or anyone else’s) hardware immediately after its initial release.

Even if serious flaws didn’t frequently surface in the company’s first batch of new models, I’d hold off on buying one of these, despite my admiration for the genuine accomplishments in this one. Cost isn’t the issue; rather, there are just a few too many feature compromises for my work-style.

My friend and your co-host here, Walt Mossberg, explained them well in his recent review. They include a nonremovable battery; non-expandable RAM; a paucity of ports; lack of an on-board optical drive; and a relatively small 80GB hard disk. (I wouldn’t even consider the flash-memory model for the moment, due to its high price and lower 64GB capacity.)

The somewhat modest central-processing power is a non-issue. Intel’s new Merom-architecture chip, running at up to 1.8GHz, has plenty of muscle for the kinds of duties a machine like this would typically handle. Graphics and media professionals would disagree, no doubt, but this ultra-svelte device isn’t aimed at them in any case.

I certainly can imagine why some folks have already ordered one. A frequent traveler whose computing tasks include little more than email, document-handling, Web browsing and watching a video will have lots to love.

But if she’s one of the increasingly global members of the workforce, and (unlike Steve Jobs) flies coach internationally except when she’s lucky enough to get an upgrade, she’ll discover that the roughly 5-hour battery life is good enough for domestic travel. And if the battery gets flaky or fails on the road, as has happened to me in two laptops, one an Apple, she’ll be up a creek.

Laptop batteries wear down eventually. Apple says it’ll replace batteries for the same price as MacBook batteries, with no labor charge, but there’s a serious inconvenience factor in having to take or send the machine to a repair shop.

Our otherwise happy purchaser will encounter other problems. She’ll arrive at her hotel one day and discover that there’s no Wi-Fi in the room. Out will come a dongle that fits into the single USB port, which is contained in such a tiny space that lots of USB devices will need extender cables, allowing her to use the room’s wired Ethernet connection.

In fact, it’s already clear that anyone doing serious computing will be hauling around a slew of dongles for the MacBook Air. The adapter for video presentations is a fact of life already for Mac notebook users. You’ll need a small USB hub just for starters, plus various adapters for things like an EVDO or other high-speed cellular modems that many serious travelers now rely on for domestic connections.

Apple’s design choices were surely aimed at one goal: creating the thinnest, lightest and most beautiful notebook around. You can find lighter Windows machines, but they have even more compromises, often including dreadful keyboards. (Not that I’m a fan of the Chiclet-y keyboards Apple now includes with everything but the MacBook Pro; some folks love them but I’m distinctly underwhelmed.)

The best keyboards on any notebook computers are in the ThinkPads from Lenovo, which bought the line from IBM a while back and, so far, appears to have maintained high standards. The smaller ThinkPads, especially the X models, are sturdy, reliable, capable and smartly designed in their own right, though not remotely jaw-dropping like the new Macs. But the ThinkPads have been the absolute class of notebook computers for many years.

Which leads to the obvious point–something I and at least a few other people have been publicly advocating for a long time, not that Apple is paying any attention. We keep wishing that Apple would either make a deal with Lenovo to sell ThinkPads with Mac OS X as an option, or make a deal with whatever company actually manufactures the ThinkPads. Then we’d enjoy the best of both worlds. (An upcoming ultra-portable, ultra-capable ThinkPad model would be the perfect machine for the Mac OS.) I would pay a premium, and so would plenty of other folks.

Some day, I predict, Apple will make such a deal. While we wait for Steve Jobs or his successor to realize why it’s a good idea, we can expect a host of improvements to upcoming versions of the MacBook Air. Not incidentally, some of these will also make Apple even more money.

Keep in mind that the relentless pace of technological improvement means that the processing power, memory and storage capacity of the MacBook Air will get dramatically better in coming months and years in any case. So that 80GB drive will be 160GB next year, and the 64GB in the solid-state version will double, too, for the same cost. As always, customer patience solves some issues.

But if I were czar of the MacBook line, I’d do two things right away. First, I’d find a way to make the current model modular, with one additional port that would connect to a dock in the home or office or both; the dock would in turn connect to a monitor, keyboard, mouse, printer, Ethernet line, external storage and other typical gear. This would resurrect the still-classic mode of the old Mac Duo notebook systems, which even now are fondly remembered as the best hardware combination of Apple’s portable-machine history. (Of course, the PC-laptop world–and, yes, the ThinkPads–have been doing this for a long time.) The docks would, like other Apple-made peripherals, become a profit center in their own right.

Second, I’d launch another notebook model. Call it the MacBook Air Pro. It would weigh a half-pound more than this one, and it wouldn’t be quite as gorgeous. But it would add back ports such as Ethernet and Firewire, along with a more capacious hard disk, removable battery, MacBook Pro keyboard, built-in EVDO and expandable RAM, among other things.

Meanwhile I’ll count on all you early adopters to find the inevitable bugs in the first batch of MacBook Airs. And I’ll count on Apple, as always, to be a pace-setter in design.

But I suspect I’m in a large class of potential customers. I’d love a computer that’s high art, but I need one that’s right for hard work.

Wednesday, December 26, 2007

Christmas Present for Apple Bulls: Mac Cleared for Takeoff

Henry Blodget

As hard as it is to believe, many Apple (AAPL) bulls are still missing the best part of the company’s growth story: the improving opportunity for Apple’s computer business.

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Wednesday, May 23, 2007

The Mythic Wars of Competition Between Bill and Steve

Fred Gibbons

Over dinner the other night, Federico Faggin was talking about the development history of the microprocessor. He put up an old Bill Gates and Paul Allen photo, with Bill around 19. I followed by finding an old Steve Wozniak and Steve Jobs photo, with Jobs around 19 or 20. I guess we all looked like that at one time! It was an age of innocence and idealism. The battle cries were “Don’t trust a computer you can’t lift” and “We’ll put a computer on every desktop.” There was swaggering, jousting and boasting.

From up close in the early years, the relationship between Steve and Bill never seemed adversarial, of the “we will bury you” kind, but rather a battle over the new order in the computer world. (The two will appear together next Wednesday at the fifth D: All Things Digital conference, which you can read about here and in a post by Kara Swisher here). Steve was the philosopher king out to change the world, with Bill representing a new hero, the “techno geek” complete with duct-tape eyeglasses that required perpetual repositioning on the bridge of his nose. I think Bill still sets a fashion trend today in geek glasses.

The IBM introduction of the PC in 1981 really clarified which side Bill and Steve were on. It was easily characterized as the equivalent of “Star Wars,” with Bill as Darth Vader and Steve as “the Force,” but some people thought of Steve as the quirky Yoda. There was even a Princess Leia in the form of Esther Dyson, whose support in the industry press was considered the ultimate prize.

The brave new world being built by Bill and Steve lost its innocence with the introduction of the IBM PC. Apple launched an ad whose headline said “Welcome” and noted that it looked forward to “responsible competition.” And check out the Apple hammer being thrown through the image of Big Brother, who symbolized IBM. The lines were drawn, with Microsoft DOS and Goliath IBM leading the creation of a phalanx of clones supported by Intel. The movement survives to this day and is known as Wintel.

Steve’s strategy was to fight IBM and Microsoft by building an Apple brand that symbolized tech chic and established a personal relationship between Apple and its users. Symbolic of this mass personal appeal, Bill, Mitch Kapor and I were all invited to Hawaii for the introduction of the Mac in 1984. After appearing onstage for a “Dating Game” between software developers wooing the Mac’s attention, Mitch, Bill and I were marched off to a photography studio. We were handed red, blue and yellow Mac-logoed polo shirts and told to smile while the image was taken that soon would be made and distributed to thousands of computer stores worldwide.

Within days of the poster boys appearing in public, I received a call from a very senior IBM executive expressing in no uncertain terms his anger over my support for Apple. I don’t know for sure, but I’d bet Bill and Mitch got a similar call. And from this point on, we software developers had to walk the line of nodding when Steve pounded on us to develop new versions of our products first for the Mac, utilizing all of its features. Bill soon followed, proselytizing about the first version of Windows.

I wonder now if these old mythic wars are over, with the Internet as the common platform, Apple taking “computer” out of its name, and Bill Gates stepping away from Microsoft.

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