Three things Apple won't do

October 16th, 2008 by Erica Ogg

(Credit: Apple)

Nothing is much of a secret about Apple events these days.

Turns out, a high percentage of the rumours and leaked images of the notebooks announced this week were right on target: the US price drop (unfortunately, not for Australians), the aluminium casing across the entire product line, the new unibody construction process, the black bezel displays were all mentioned on Apple rumour sites and gadget blogs before CEO Steve Jobs took the stage.

But, as would be expected, several of the most widely circulated pieces of speculation proved false. In brief comments after his keynote speech, Jobs did something he doesn't usually do, and clarified what isn't on his company's immediate notebook road map. Three of them are some of the most oft-repeated rumours of future Apple products. Here's why touchscreens, Blu-ray and netbooks are not what Apple has in store for us anytime soon.

Blu-ray
Perhaps Jobs' most puzzling or awkward comment during Tuesday's event was regarding what is assumed to be the standard in high-definition packaged media. Regarding Blu-ray, Jobs described it as "a bag of hurt". He expanded, saying that he meant that not from a consumer experience perspective, but that the licensing is expensive and complex. Apple apparently plans to take a wait-and-see approach after Blu-ray has been in the market awhile.

Though Jobs clearly left some wiggle room in his answer, don't expect to see a Blu-ray drive in an Apple notebook anytime soon. If you're disappointed, blame iTunes. Apple is in the middle stages of building a video download business, and it's clear that the company wants its customers to use iTunes to watch high-definition videos, not revert to packaged media, where it can't get a slice of the revenue as it does while selling or renting digital content.

While Blu-ray is certainly the dominant high-definition format, it's still not the dominant packaged media format. DVD sales are tapering off, but still haven't completely disappeared. By the time that happens, it's assumed digital downloading for videos will become more common. In the interregnum, the major Hollywood studios are hedging their bets, some offering titles as a free download once you buy the title on disc.

But not Apple. In fact, Blu-ray's presence in an Apple computer is pretty much a moot point, according to Steve Baker, vice president of industry analysis for NPD Group.

"They're [Apple] not trying to be everything to everyone like Netflix or Blockbuster. They're going to keep trying to deliver economy around digital downloads. I still question why anybody would question or care whether they'd have Blu-ray," he said.

Touchscreen notebook
Jobs also seemingly put the kibosh on any touchscreen Mac, another rumour that rears its head every once in awhile. When asked on Tuesday, Jobs said that while they've looked at touchscreens for notebooks, "it hasn't made a lot of sense to us," he said.

Apple is one of the leaders in implementing touchscreens in its devices — the iPhone, the iPod Touch — and using them in innovative ways. And while Jobs admitted that his company has looked into it, it's passing on making a notebook version of Hewlett-Packard's TouchSmart PC, the desktop with a touchscreen monitor.

While it would be innovative to put one in a notebook, it's not really likely from any major computer makers at this point, according to Charles Smulders, Gartner's managing vice president.

"We're seeing some vendors using touchscreens, but it's typically on the desktop form factor not on a notebook," he said. HP's TouchSmart, for instance, is designed to be used in a room like the kitchen, where interactions are more brief. Long-term or all-day use generally requires input devices like a keyboard.

Netbook
And though many Apple fans were hoping for a netbook, a cheaper, under-featured notebook, from the company, they'll have to wait longer. When asked about that, Jobs said netbooks are still a nascent market and that "we'll see how it goes".

While he certainly left some room to change his mind, he didn't sound excited about the category at all. And the company might be timid about getting into the netbook market since its attempts at the smaller, cheaper Mac Mini weren't that well received, said Baker of NPD.

"They did a nettop [a desktop version of a netbook] and it wasn't particularly successful, if you think about the Mac Mini as a precursor to nettops," he said.

On one hand, it does make sense for Apple to leave netbooks out of its Mac line-up if just to preserve its brand image. Netbooks are based almost purely on price, and Apple doesn't make its product decisions on price points, but rather features.

Any lower price point would likely be a big hit to the quality of experience Apple tries to deliver, and its margins. (While Apple is catching up in the US, it's still far outpaced in units shipped by HP, Dell and Acer, which can afford a side business of making smaller, cheaper netbooks.)

But while Jobs' comments don't sound too promising, he certainly left plenty of room to change his mind. After all, he's right about netbooks being very new. And while they're selling relatively well right now, there's not a lot of innovation in the sector. As the market matures, there's plenty of room for Apple to jump in, according to Smulders.

"It's such an early developing market; there's a long way to go before the optimum form factor and user experience is delivered," he said.

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2 Responses to “Three things Apple won't do”

Glenn
October 16th, 2008 at 5:10pm

The 4th thing they won't do is have fair pricing in Australia

Unlocked iPhones in Australia
October 20th, 2008 at 9:04am

At least he's being open and honest... and the touchscreen logic is right on.

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