Friday, February 24, 2006

Wozniak Blows a Gasket

Recently, Steve Wozniak, one of Apple's original garage-based founders, stated that he felt that Apple was "consorting with the enemy" by using Intel chips and that Apple should also sell off the iPod business as quickly as possible since Apple is supposed to be in the computer business, and the iPod is certainly no computer.

Brilliant inventor, maybe, but Steve, let's leave the business decisions to the adults, OK?

Obviously, Mr. Wozniak has failed to notice Apple's historical failure to win major market business for its computers - outside of education and creative types, that is. And while the iPod is not a computer in the traditional sense of the word, was the Mac? The Mac was revolutionary not only for its different look but for the audience to which it appealed. Similarly, the iPod makes technology "appealing" to millions of people that would never otherwise know or care what an MP3 is (to wit - my daughter, sitting next to me, states that "...iPods are cool. I don't care what an MP3 is [nor does she know...right, dear?]."

Let's check quickly. Apple sells off the iPod business and gets a boatload of cash. It kills its relationship with Intel and either has to manufacture chips itself (see Sun for the issues with this one) or get them from someone else. Either way, it's new architecture, manufacturing, possibly software, etc. Very simply, Apple dies. Perhaps Mr. Wozniak didn't notice what happened to Apple stock recently when there was even a small hint that iPod sales might not increase geometrically in the future. Apple without iPod these days is, unfortunately, not much.

Maybe the right thing to do for Apple to do is to sell the traditional computer business that Mr. Wozniak is so fond of and increase its focus on cool consumer electronics. Using its wizardry (small pun-like nod to Mr. Wozniak) in user interfaces and software, I'm sure it could cash in with other devices as well. Maybe Mr. Wozniak could take this divested entity over and make a success of it.

Perhaps not.

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