A big question goes begging as Apple's Steve Jobs and Microsoft's Bill Gates tout the coming meld of video, audio, high-definition DVDs, Windows-driven "smart" cell phones, Macintosh OS X-driven iPhones, home camcorders, PCs, Macs, stacks of DVD movies from Hollywood and other digital media content. As digital audio and digital video begin to spread, ever more people are buying, receiving from friends and otherwise acquiring videos in a bewildering number of file types created by an equally daunting collection of programs.
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Apple's iPhone may be six months away from its general release, but some eager fans already have smartphones that look just like the user interface company CEO Steve Jobs unveiled last week at the Macworld Conference & Expo. At least one company, MoDaCo, has developed a screenshot of the interface that users can download and install as a "skin" on their own PocketPC device. Apple, unsurprisingly, has not looked kindly upon these endeavors and is threatening legal action. MoDaCo has displayed on its Web site a letter it received from Apple's legal team.
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Jack Minsky built a successful business by writing software for Apple's Macintosh computers. So when Apple last week dropped the word "computer" from its name, and dedicated its annual Macworld trade show to non-computer gadgets, Minsky might have felt concern for his company's future. Not so. Minsky, president of SoftwareMacKiev of Boston, thinks Apple's new strategy is right on target. "We're excited as we can be about the way Apple is going," he said.
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AOL is giving up on its MusicNow service, and is now teaming with Napster for online song downloads. The service was launched in November 2005 as an updated version of AOL's MusicNet subscription service. AOL was hoping its subscription-based music service would raise company revenues and also offer a viable alternative to Apple's iTunes Store. The service did not, however, live up to expectations. "You can definitely say that if AOL's music strategy were working they wouldn't have had to go outside the company," said Forrester's Josh Bernoff.
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Apple's iPhone has been hailed as a revolutionary product for its touch-screen interface, large screen, and multiple features. However, revolutions tend to be messy, and so it could be with Apple, which faces a whole host of obstacles, not least of which are the iPhone's expensive price and disputed name. "My perspective since I first learned about it is, 'Wow, this is really cool.' But 'really cool' doesn't mean success right away," said Neil Strother, an analyst who covers the mobile phone business for NPD Group.
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