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Apple's fortunes have shifted from its traditional desktop market (Mac OSX) to its portable device market (iOS.) This began, innocuously, with the iPod and gathered major momentum with the iPhone, iPad and, most recently, the AppleTV.
The AppleTV was the really revealing move: in its first iteration it was based on OSX but in its second iteration it became an iOS product. Apple actually morphed a product from one line into the other. Very telling.
The most interesting piece of the iOS puzzle is the App Store. The App Store seems like little more than a neat way to funnel end user funds into Apple's ample pockets and, on the surface, it certainly was a huge success in that area.
The App Store solves the many issues surrounding software purchasing compatibility, security, etc. and makes finding new software much easier by offering a central repository. By doing this, Apple's customers are purchasing software at an incredible pace.
Apple has many reasons to look more favorably upon its iOS product family than its more traditional products. The old Mac lineup is, in reality, just another PC in a commodity market. While OSX has some interesting features compared to Windows, its hardly a majorly differentiated product. And with Linux rapidly cutting into the PC market in the netbook and alternative computing device space there is less and less room for OSX to play in.
The iOS devices, running on Apple's own A4 processor, enable Apple the unique opportunity to engineer their products from the ground up as a completely controlled vertical stack they control every significant piece of hardware and software, giving them unprecedented control. This control can be leveraged into awesome stability and integration as well as profit. Few outside vendors are getting a piece of the pie.
Development PartnersA fully integrated hardware and operating system stack also gives Apple's development partners an opportunity to leverage their skills to the fullest. This is analogous to video game console developers knowing that underpowered consoles will often outperform desktop PCs simply because the developers have an opportunity to really tweak the code just for that one, stable device.
iOS offers this in a different environment. Unlike developing for Android or Windows Phones, iOS offers a highly stable and well-known ecosystem for developers to code against they can leverage more of the platform with less effort.
Green TechThe iOS devices, based on a highly efficient operating system and built on a very low power consumption platform designed for mobility, offer significant "green" advantages over many traditional devices. This could be Apple's new niche.
The power user market is all but lost and Apple quietly bowed out of their long-forgotten server market this past January. This takes Apple to the other side of the spectrum entirely, but one where Apple seems to really understand whats needed and what their market wants. Rather than being niche, Apple is poised to be a dominant player. Theres no denying that lower power consumption "green" devices will only continue to be important in the future.
Controlling an EcosystemIn short order, Apple is going to be in a position to control an entire ecosystem: mobile computing platforms, mobile telephony, fixed television-attached media devices and, with only minor effort, desktop computing.
Desktop computing may seem like an odd place for the iOS system to go, but if we really think about what Apple is developing here, it makes perfect sense. The transition won't be overnight, but it is sure to come.
The only things keeping the AppleTV from becoming a full-fledged iOS-based desktop today is a lack of USB into which to attach keyboard and mouse, and Apple's reluctance to provide a desktop environment and App Store for the AppleTV. The foundation is there and ready to be activated.
In reality, we are early on in the iOS lifecycle. While the platform that Apple has chosen is very mature for mobile devices it is extremely underpowered for a desktop experience. But each generation brings more computing power to the platform. Soon, a desktop based on a later version Apple processor and iOS may easily exceed the average user's desktop expectations.
Most home users find their desktops today to be significantly overpowered for their basic needs of email, Web browsing, watching Netflix and YouTube, etc. These are tasks for which many people are switching to their iPads already. In another generation or two of processors we may see an AppleTV-like device that draws only four or five watts of power able to adequately power the average user's desktop computing needs.
An OSX App StoreThe second step is in the newly added App Store appearing in Mac OSX. The addition of the App Store to the Mac platform means that the beginning of the transition is underway.
Incumbent Mac users are now being introduced to the concept of finding software, acquiring it and installing it all through a simple, integrated system, just as iPhone and iPad users have been using for years now. Had the App Store and all of its cost and limitations been introduced to users and developers on the Mac first, it likely would have been shunned and faded away without real comment. But today the Mac landscape is far different.
The plan, as I see it, with the Mac-platformed App Store, is to begin centralizing critical apps for the Mac ecosystem into the App Store. Over the next two to three years this process is likely to see all major apps move in this direction. Only smaller, less popular apps will be handled through the traditional purchase and install system.
Once a critical mass of apps has been reached and the iOS hardware platform has matured to a point where the speed is adequate for daily desktop computing tasks, Apple will flip the switch and change out the Mac OSX desktop for a new iOS desktop.
This will either be a sister of the AppleTV or, potentially, Apple will simply use the AppleTV device itself encouraging Apple users to see the world of desktop computing and media delivery as one. This vision is not as unlikely as some might think given the combination of the two so common on iOS mobile devices today.
Businesses on Board?An iOS desktop could be very attractive to home users. Many businesses might be willing to jump at the chance to move to well-polished, low-power consumption devices for their non-power user staff. And those needing more power might look to use them as little more than thin clients.
There are many options around such a low cost device low cost to purchase and low cost to operate. And with many companies already forced to implement iOS management for their existing iPad and iPhone devices, adding in iOS desktop devices might be a trivial matter.
Apple has conquered many of the hurdles that it faced with Mac OSX for the iOS platform before they've even announced plans to make such a desktop device.
The laptop space, where Apple has a strong foothold today, is possibly the easiest platform to migrate. The iPad is almost a full-fledged laptop today. All Apple needs to do is to add a hinge and a keyboard and theyd have a device that works like an iPad but looks like the Macbook Air. An easy transition likely to be heralded by enthusiastic users.
Apple excels at subversive technology. The iPod and iPhone and the iPad, snuck into the market as media players or phones but emerged as highly mobile computing devices used for all sort of tasks, spurred on by the success of social media. But they sneakily did one more thing. In only a few years the iPod Touch went from being a MP3 player and email device to being one of the most popular mobile videogame platforms making Nintendo shake and basically removing Sony from the sector altogether.
It is not necessarily that the iOS platforms are the best possible mobile videogame devices. But they are purchased for other purposes and are "good enough" for most of the gaming population. What the Wii wanted to be for consoles, the iPod truly did for mobile gaming.
AppleTV Poised for Console MarketThe AppleTV is now perfectly poised to do the same thing for the console market that the iPod did for mobile gaming.
As more and more game makers focus on the iOS platform it will become increasingly apparent that the AppleTV, sitting already attached to many television monitors all over the world, is a video game console already purchased and ready to go.
What the Wii did in the last generation for the console the AppleTV is ready to do for the next. Nintendo already proved that the largest segment of the video gaming market is primarily casual gamers who are not significantly concerned with having the latest, most powerful platform or the best games.
The AppleTV could provide an even less expensive gaming console with more features than the Wii. It could be far more attractive for developers who can utilize the same resources that they use to make games for all of Apple's other iOS platforms.
Almost overnight, Apple has made the basis for a video gaming ecosystem that can rival nearly any in existence today. And, of course, in time the AppleTV platform will get more and more powerful. It will catch up to the more expensive video game consoles, making it increasingly eligible as a serious platform contender for hard core console gamers.
Apple has a lot of pokers in the iOS fire but, if executed correctly, the potential is immense.
It will take a few years for Apple to completely phase out the long standing Mac family and users will be resistant, if only for nostalgic reasons. Apple has a few versions of Mac OSX up their sleeves yet, but I believe that the march towards a unified platform under the iOS banner is inevitable.
iOS represents the future, not only for Apple but for much of the industry. It offers lower power consumption, ease of use and a minimum of different parts between many different devices. I, for one, am very excited to see what Apple can do with such a tightly integrated ecosystem. I believe that Apple has more opportunity to do great things with iOS than it ever did with the Mac platform. This could truly be a dawning of great things for Apple and a paradigm shift for end users.