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Steve Jobs Biography Reviewed and Other Tidbits From the Book
Oct 23, 7:36PM
The much anticipated Steve Jobs biography is officially launching on Monday, October 24th. Despite the official release date, many copies have already started circulating. The image on the right is from a book delivery from late last week (thanks Ernest). The New York Times provides a positive review and nice overview of the book which was authored by Walter Isaacson.
"Steve Jobs" greatly admires its subject. But its most adulatory passages are not about people. Offering a combination of tech criticism and promotional hype, Mr. Isaacson describes the arrival of each new product right down to Mr. Jobs's theatrical introductions and the advertising campaigns. But if the individual bits of hoopla seem excessive, their cumulative effect is staggering. Here is an encyclopedic survey of all that Mr. Jobs accomplished, replete with the passion and excitement that it deserves.Several other interesting tidbits have emerged from the early copies of the biography. We've covered some of the big revelations in previous articles, but here are a few others that are notable.
- Jobs viewed textbooks as the next business he wanted to transform. He met with major publishers about it. Jobs also discussed 4G data capacity in a recent board meeting in August. - NYTimes
- Jobs described Microsoft as "mostly irrelevant" due to being run by salespeople. He didn't believe Microsoft would change as long as Steve Ballmer was in charge. - NYTimes
- "Jobs confided in Sculley that he believed he would die young, and therefore he needed to accomplish things quickly so that he would make his mark on Silicon Valley history. " - Huffington Post
Walter Isaacson will be interviewed 60 Minutes tonight and is also said to be showing interview tapes of Steve Jobs.
The book is available on Amazon and iBooks.
Walter Isaacson's Steve Jobs Interview on 60 Minutes Tonight [Mac Blog]
Oct 23, 7:31PM
As a reminder, Steve Jobs' biographer Walter Isaacson was interviewed for 60 minutes. That interview will air tonight (Sunday, Oct 23rd) at 7pm Eastern/Pacific. Also included are interview tapes in which Jobs tells his own story.
Isaacson's biography of Steve Jobs is due to launch officially on Monday, and is already available in some parts of the world on iBooks.
iPod Turns 10 Years Old Today
Oct 23, 2:37PM
Ten years ago today, Steve Jobs took the stage and introduced the first iPod. The portable music player is seen as being largely responsible for Apple's dramatic comeback over the past decade. It also led Apple down the path into the consumer electronics market. While the iPod has diminished in importance over the past few years, Apple's bottom line is now dominated by devices such as the iPhone and iPad.
Macworld provides a nice story detailing how the iPod came to be:
Behind every successful product lies a problem in search of a solution. The inspirational problem, in the iPod's case, involved the pitiful state of the young MP3 player market in the late 1990s.Initial reaction to the iPod wasn't entirely favorable. Slashdot's famous reaction was "No wireless. Less space than a nomad. Lame." MacRumors was also around at the time as well, and much of the reader reaction was also negative. One commenter wrote:
Portable MP3 players had been around since the mid 1990s, but Apple found that every one on the market offered a lackluster user experience. Steve Jobs had a strong term for gadgets like that: "crap". Everyone at Apple agreed.
All that hype for an MP3 player? Break-thru digital device? The Reality Distiortion Field™ is starting to warp Steve's mind if he thinks for one second that this thing is gonna take off.Of course, ten years later, the iPod has sold over 304 million units.
Some Scenes In The Avengers [Not] Filmed On an iPhone [Updated] [iOS Blog]
Oct 21, 10:36PM
Updated: It turns out that Seamus McGarvey was misquoted. From The Hollywood Reporter:
"I was talking about how up and coming film makers have access to a whole range of new technologies which expand our options as filmmakers. I mentioned that the iPhone and the Canon 5d Mk2 were devices currently used on many Hollywood productions. I used the Canon on some shots on Marvel's The Avengers movie," he stated to THR. "Unfortunately, this was edited to read that I shot some of the film with the iPhone. This is not true."The original story follows:
The iPhone 4 has a great camera built-in -- but it is good enough to film a movie? According to cinematographer Seamus McGarvey, who worked on the upcoming Avengers movie, the iPhone works just fine as a cinematic instrument. In an interview with the Irish Film & Television Network:
The beauty of photography or cinema is that you make every choice based on the content at hand. On The Avengers, I did a couple of shots on the iPhone and they are in the movie. In fact, they are in the trailer! I understand that sometimes there is no choice and you have to go for the cheapest option, but if you are limited for choice, you can still make poignant decisions that will effect the look of the film.McGarvey gave no details about exactly which shots in the trailer were taken with an iPhone. It's a testament to the iPhone and McGarvey's abilities as a cinematographer that we can't figure it out.
Watch The Avengers trailer on Apple's movie trailers website.
T-Mobile: Apple's Decision When We Get the iPhone [iOS Blog]
Oct 21, 8:40PM
In a statement released yesterday, Andrew Sherrard, T-Mobile USA's Senior Vice President of Marketing, blamed Apple for T-Mobile's lack of an official iPhone offering. He said the main issue remains Apple's unwillingness to build hardware compatible with T-Mobile 3G and 4G networks. T-Mobile thinks the iPhone is a good device and we've expressed our interest to Apple to offer it to our customers. Ultimately, it is Apple's decision. The issue remains that Apple has not developed a version of the iPhone with technology that works on our fast 3G and 4G networks. We believe a capable version of the iPhone for our 3G and 4G networks would offer an additional compelling option for our customers on a fast 4G network. However, the iPhone is not the only option to experience the benefit that smartphones offer.Sherrard goes on to compare the iPhone to other smartphones that do support T-Mobile's network, saying that the phones are capable of faster speeds, have bigger screens, and a more advanced camera on one particular phone, the HTC Amaze 4G.
In a defense of T-Mobile that echoes an open letter to their customers last month, Sherrard said "we firmly believe that T-Mobile's portfolio will give any iPhone a run for its money... With our portfolio of Android, Windows, and BlackBerry smartphones, fast 4G network, and competitively priced worry-free unlimited talk, text, and data plans, we believe it's a great time to be a T-Mobile customer."
Steve Jobs on an Apple Television Set: 'I Finally Cracked It'
Oct 21, 8:08PM
Rumors of an Apple television set have been circulating for years, but the company has repeatedly expressed doubts about the feasibility of entering the market. Steve Jobs himself noted that the current environment of "balkanized" cable operators controlling everything through their own set-top boxes makes it difficult to envision a go-to-market strategy for Apple.
But Walter Isaacson's forthcoming biography of Jobs suggests that Apple may have developed a solution to those ideas, stoking optimism for an Apple-branded television set. Jobs' comments were revealed in an excerpt published by The Washington Post.
"He very much wanted to do for television sets what he had done for computers, music players, and phones: make them simple and elegant," Isaacson wrote.The report notes that it is not clear what Jobs meant by having "cracked" the television problem, but it seems to focus on leveraging Apple's new iCloud service and potentially existing iTunes Store content, all within an easy-to-use television set.
Isaacson continued: "'I'd like to create an integrated television set that is completely easy to use,' he told me. 'It would be seamlessly synced with all of your devices and with iCloud.' No longer would users have to fiddle with complex remotes for DVD players and cable channels. 'It will have the simplest user interface you could imagine. I finally cracked it.'"
No MacBook Pro Refresh Until Early Next Month?
Oct 21, 6:50PM
Just yesterday, 9to5Mac claimed that a debut of updated MacBook Pro models was "likely" to occur next week, offering a minor speed bump refresh to carry the line through until the launch of Intel's Ivy Bridge platform next year. AppleInsider now reports, however, that the MacBook Pro launch will likely not occur until "early next month".
[One source] said that the notebooks' planned introduction in late September was put on the back burner once the release dates for iOS 5.0 and iPhone 4S were solidified, as Apple pooled all available resources to support the launch -- the largest and most rapid yet in the Cupertino-based company's history.The reason for the continued fluidity in launch timing is unknown, although Apple's primary MacBook Pro and MacBook Air aluminum case supplier, Catcher Technology, has been forced to temporarily shut down its factory over over pollution concerns. Digitimes reported today that Catcher is investing $2-3 million to address concerns at the plant, aiming to resume production next month.
Since then, the launch date for the Late 2011 MacBook Pros has reportedly been a moving target. However, a second person with proven accuracy in predicting Apple's product launch dates says the Mac maker is now advising its partners not to expect availability of the new models until the first week of November.
Apple has reportedly already ramped down production of its current MacBook Pro models, a situation that will likely lead to increasingly tight supplies heading into the refresh. Third-party resellers are already experiencing shortages and stock-outs of the MacBook Pro, although it is unclear if the shortages will also spread back to Apple's own channels, which understandably maintain highest priority for distribution.
Some iPhone 4 Cases May Not Work for iPhone 4S After Light Sensor Move [iOS Blog]
Oct 21, 5:59PM
There have been a few slight changes in the iPhone 4S's external design, as compared to the original iPhone 4. The most noticeable is that the antennas have moved around the edge of the stainless steel band. But more importantly, at least for iPhone owners who put a case on their phone, is that the ambient light sensor or ALS has moved to the left several millimeters, according to CNET. But that was before someone noticed that Apple had made a small but somewhat crucial design change: it moved the ambient-light sensor a few millimeters to the left. That created a problem for many rugged cases that covered more of the front of the iPhone: instead of peeking out through a hole cut into the case, the sensor was now hidden behind the case.Case companies are adjusting their cases to suit the changes. Case manufacturer Otterbox told us that the main differences between the old and new cases "will be a larger cutout around the camera and proximity sensor, as well as a few minor adjustments to ensure the cases fit all versions of the iPhone 4 and iPhone 4S."
With no light penetrating, the sensor thinks the phone is in a darkened room and automatically dims the screen to look less blinding and save battery life. In the settings menu, you can manually set the screen brightness, but when in "auto-brightness" mode, the ambient-light sensor adjusts the brightness on the fly according to the ambient lighting conditions.
The CDMA iPhone 4 moved the mute switch slightly lower to make room for the upper left antenna. Some cases from the GSM iPhone 4 don't allow access to the moved mute switch. The iPhone 4S has the mute switch in the same location as the CDMA iPhone 4 and thus some early iPhone 4 cases prevent easy access to the mute switch as well.
Users having difficulties with screen brightness or dark pictures from the rear camera are encouraged to contact their case manufacturers for remedies.
Image courtesy iFixit
Intel Chip Delays Suggest No New Mac Pro Until at Least Early 2012
Oct 21, 4:18PM
Potential Mac Pro customers have been long awaiting updated models from Apple, with the last update to the line having come in July 2010.
Anticipation regarding an updated Mac Pro was heightened back in June as several claims of an imminent launch surfaced. Part numbers claimed to be for new Mac Pro models surfaced a few weeks later, but they instead ultimately turned out to be for new Mac mini models and the Apple Thunderbolt Display.
With the wait for new Mac Pro models continuing, hope surfaced once again in early September amid reports that Intel was planning a November 15th launch of new Sandy Bridge E processors and their Xeon E5 equivalents suitable for the Mac Pro.
But hopes for a Mac Pro launch before the end of the year appear to have been dashed, as Intel is now targeting an early 2012 release for the new chips. The news, first reported last month, has recently been confirmed with additional timeline information from CPU World.
In September, during Intel Developer Forum event in San Francisco, new information came to light implying that Xeon E5 launch is postponed until the first quarter 2012. Indeed, according to the latest Intel roadmaps, all Xeon E5 processors are going to be delayed by one quarter.Apple will almost certainly take advantage of the Xeon E5-2600 series in the next Mac Pro, likely targeting the E5-2620, E5-2650 and E5-2670 for the dual-processor configurations of the Mac Pro, offering options of 12 or 16 cores in those configurations. Single-processor configurations would likely also be made available using other chips.
...
Xeon E5-2600, also compatible with socket R, is aimed at dual-processor workstations and servers, and contains 17 different dual-, quad-, six- and eight-core models with clock speeds up to 3.3 GHz. Both families will be released in Q1 2012. Despite the delay, there were no changes to E5-1600 and E5-2600 microprocessor line-ups.
Steve Jobs Organized Apple to Give Jony Ive Complete Operational Freedom
Oct 21, 3:29PM
Yesterday, we highlighted an Associated Press report on Walter Isaacson's forthcoming Steve Jobs biography addressing Jobs' views on Android being a "stolen product" and his commitment to "destroy" the platform at all costs. The report contains a number of other tidbits from the book, but one other interesting one that has been gaining some attention is Jobs' disclosure that Apple design chief Jony Ive has nearly complete freedom to do as he sees fit, an organizational structure purposely set up by Jobs.
He called Jonathan Ive, Apple's design chief, his "spiritual partner" at Apple. He told Isaacson that Ive had "more operation power" at Apple than anyone besides Jobs himself -- that there's no one at the company who can tell Ive what to do. That, says Jobs, is "the way I set it up."Ive, Apple's Senior Vice President for Industrial Design, has been at Apple for nearly twenty years, the last fifteen of those as design chief. In his role, he has been responsible for essentially all of the iconic product designs that have come out of the company over that time. At the end of Jobs' tenure as CEO earlier this year, Ive was one of seven senior vice presidents at Apple to report directly to Jobs.
Ive's team is said to operate out of a secretive high-tech lab on Apple's campus where he is given ultimate flexibility in his work, a standing earned through his team's creation of numerous iconic products and a plethora of design awards. And while Ive's design work ultimately must mesh with the hardware requirements coming out of Apple's engineering groups under Bob Mansfield, it's clear from Jobs' comments that Ive is free to pursue his own design solutions for Apple products. That freedom ultimately helps to guard against a watering-down effect that could occur if his designs were subject to the approval of and revision by others in the company.
TomTom for iOS Gains iPad Compatibility [iOS Blog]
Oct 21, 3:01PM
TomTom today announced that it has released new universal versions of its turn-by-turn GPS applications, bringing native iPad compatibility for the first time. TomTom offers over two dozen localized GPS apps, which now include an enhanced user interface optimized for the iPad.
The TomTom App for iPhone/iPad, version 1.9, features a new map release – a benefit to users of both Apple devices – with updated roads and points of interest.With TomTom's existing apps now being universal, current users of the iPhone version can simply download the latest update and install the app on both iPhone and iPad free of charge.
With this new release, TomTom has made use of the extra iPad screen size. The full-screen display shows both driving view and advanced lane guidance at the same time. Drivers can also switch to driving view with one touch from anywhere within the App, and can access guidance options in a tap.
Verizon Sells 2 Million iPhones in Q3 2011 [iOS Blog]
Oct 21, 2:16PM
Verizon today announced financial results for the third quarter of 2011, and as noted by AllThingsD in a live blog of the conference call following the release, the carrier revealed iPhone sales of two million units for the quarter. The number is a slight decline from the 2.3 million activations seen in the previous quarter, a 13% drop that Verizon attributed to launch timing for the iPhone 4S.
Verizon Wireless added 882,000 subscribers on contract-based plans. That was a slowdown from iPhone-fueled results earlier in the year -- Verizon started selling the coveted smartphone in February. Analysts had expected about 950,000 additions in the quarter.AT&T; yesterday announced 2.7 million iPhone activations during the third quarter, still ahead of Verizon but a more significant 25% drop from its 3.6 million activations in the previous quarter.
Analysts were in general caught flat-footed by the effect of the delayed iPhone launch, underestimating how much people were holding back.
Apple Opens Up Pre-Orders for Next Round of iPhone 4S Launches
Oct 21, 1:32PM
Following last week's launch of the iPhone 4S in the first batch of seven countries, Apple is set to debut the new device in 22 more countries next Friday, October 28th. Apple's online stores in many of those new countries began taking pre-orders for the iPhone 4S today, giving customers in the new markets the chance to join the queue for delivery. The new launch countries include Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, Hungary, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Mexico, Netherlands, Norway, Singapore, Slovakia, Slovenia, Spain, Sweden and Switzerland.
Apple does not operate online stores in all of those markets, however, and thus the new pre-orders for unlocked iPhone 4S models through Apple are only available in the following countries: Austria, Belgium, Czech Republic, Denmark, Finland, Hungary, Ireland, Italy, Luxembourg, Mexico, Netherlands, Norway, Singapore, Spain, Sweden and Switzerland. Customers in other countries and those looking to purchase subsidized units on contract may be able to arrange for pre-orders through their local iPhone carrier partners.
Rather than promising October 28th delivery for iPhone 4S pre-orders in the new batch of countries, Apple is currently citing shipping estimates of 1-2 weeks. It is unknown if Apple is planning to meet the original October 28th date or if availability will slip slightly in the face of strong demand in markets where the device has already launched. Apple announced opening weekend sales of four million units for the iPhone 4S, more than double that of the iPhone 4 last year.
From Steve Jobs' Biography: "I'm going to destroy Android"
Oct 21, 3:25AM
In particular, they share Steve Jobs' reaction to HTC's 2010 introduction of an Android phone that shared many features of the iPhone. Jobs told Isaacson that Google's actions amounted to "grand theft."
"I will spend my last dying breath if I need to, and I will spend every penny of Apple's $40 billion in the bank, to right this wrong," Jobs said. "I'm going to destroy Android, because it's a stolen product. I'm willing to go thermonuclear war on this."Jobs met with Google's Eric Schmidt later and told Schmidt he wasn't interested in settling for any amount of money. Instead Jobs told Schmidt, "I want you to stop using our ideas in Android, that's all I want."
Jobs' attitude against Android helps explains the lawsuits that have come from Apple against both HTC and Samsung. Both legal actions have resulted in countersuits as well as attempts to ban sales of devices around the world.
New Faster Sandy Bridge MacBook Pros Next Week?
Oct 21, 1:55AM
9to5Mac believes that the new MacBook Pros will be launching next week.
With supplies only becoming more constrained, and with shipments already touching down in select countries, we think a launch next week is likely (between Tuesday and Thursday). That is, of course, if there are no unforeseen circumstances.The new machines are said to stay at the exact same prices as current MacBook Pro models. Word of possible new MacBook Pros in late 2011 was first reported back in September. At the time, it was believed that the new MacBook Pros would take advantage of new Sandy Bridge processors released by Intel late this year. Based on the part numbers, the new machines are expected to be only a minor update.
The newly released processors from Intel include Quad Core i7 processors with speeds of 2.4GHz, 2.5GHz and 2.7GHz, as well as a Dual Core i7 at 2.8GHz models. Here's the list of new mobile CPUs adapted from CPU World:
Given the heat constraints of the MacBook Pro design, Apple will be unable to use the 2.7GHz Quad Core (Core i7-2960XM) in their notebooks. Apple also won't use the mobile Celeron listed at the end. The top 3 listed, however, remain candidates for upgrades in the new MacBook Pros.
Apple Airs First iPhone 4S TV Ad Featuring Siri
Oct 21, 1:13AM
Apple aired the first television advertisement for the iPhone 4S tonight. The new ad highlights Apple's virtual assistant Siri. The ad has not yet appeared on Apple's official YouTube channel, but was captured by MacRumors reader Philip.
Thanks @ozetadev for original video, Replaced with high quality version.
The ad shows many situations where people are talking to their iPhone 4S, asking it specific questions or describing scenarios. At the end, Apple shows Siri responding, and ends with "Say hello to the most amazing iPhone yet."
AT&T Seeing "Tremendous Demand" for Free iPhone 3GS
Oct 20, 10:52PM
In a conference call with analysts this afternoon, Ralph de la Vega, President and CEO of AT&T; Mobility discussed the impact of the recent price drop on older-generation iPhones, particularly the iPhone 3GS. That phone is the first iPhone be offered free with 2-year contract in the U.S.We have another device that I think is going to dramatically change those people that are on smartphones and quick messaging devices, the [iPhone] 3GS, which is free with a 2-year contract. We've seen a tremendous, tremendous demand for that device even though it's a generation old. And actually, we're getting more new subscribers coming on the 3GS on the average than other devices. So we also have an inventory sold out on that device.De la Vega also noted that AT&T;, like Apple, had slightly slower numbers this quarter as a result of the next-generation iPhone launching in the fourth calendar quarter versus the third. He expects AT&T;'s numbers to surge in the holiday quarter with the launch of the iPhone 4S, saying the company was "very, very optimistic on what the fourth quarter is going to look like in terms of smartphone growth."
Toshiba Introduces New 6.1-Inch Display at 498 PPI
Oct 20, 7:57PM
Apple has long touted the crisp resolution of its "Retina" display that debuted in the iPhone 4 with a resolution of 326 ppi (pixels per inch), a display that has since made its way to the iPod touch and now the iPhone 4S. The Retina display concept is also said to be set to make its way into the iPad 3 next year, with Apple preparing to quadruple the number of pixels to offer a resolution of 2048 x 1536 on the device's 9.7-inch screen.
Magnified comparison of Toshiba's new 498 ppi display with lower-resolution displays
Toshiba is now pushing the idea even further, today introducing a new 6.1-inch display offering a resolution of 2560 x 1600, coming in at 498 ppi.
This newly-developed world-class, high-definition LCD panel is based on our processing techniques for forming fine-pitch and high-performance, low-temperature poly-silicon (LTPS) thin-film transistors (TFT) on glass substrates, and other precise fabrication techniques which have been cultivated over the years. This direct-view LCD panel achieves high-definition images with photographic quality, and although the images are displayed in 2D format, they impart a sense of depth and realism.Apple obviously does not currently offer a mobile product in the range of 6.1 inches and other considerations such as ensuring a smooth transition from lower-resolution displays would likely preclude the company from utilizing this exact display, but it is clear that the technology is advancing rapidly to enable ever higher display quality. As mobile devices continue to see increased graphics capabilities and costs fall into line with existing technologies, such ultra high resolution displays are likely to see significant adoption.
Steve Jobs Regretted Early Decision to Delay Cancer Surgery
Oct 20, 7:11PM
With Walter Isaacson's authorized biography of Steve Jobs set for release next Monday, tidbits from the book have been surfacing from time to time. But the most significant revelations to become public ahead of the book's launch will come on Sunday, when an interview with Isaacson airs on the CBS show 60 Minutes. CBS is offering a brief preview of the segment, which will reveal that Jobs regretted an early decision to delay surgery for his pancreatic cancer back in 2004.
"I've asked [Jobs why he didn't get an operation then] and he said, 'I didn't want my body to be opened...I didn't want to be violated in that way,'" Isaacson recalls. So he waited nine months, while his wife and others urged him to do it, before getting the operation, reveals Isaacson. Asked by [60 Minutes correspondent Steve] Kroft how such an intelligent man could make such a seemingly stupid decision, Isaacson replies, "I think that he kind of felt that if you ignore something, if you don't want something to exist, you can have magical thinking...we talked about this a lot," he tells Kroft. "He wanted to talk about it, how he regretted it....I think he felt he should have been operated on sooner."Isaacson goes on to note that Jobs continued to receive cancer treatments after his surgery, even as he was playing down the seriousness of the issue and telling people that he had been cured. By the time of his surgery, the cancer had already spread beyond his pancreas to the surrounding tissues, suggesting that earlier surgery that could have caught the cancer before it spread might have given Jobs a much better chance.
Isaacson's interview, which will air on the 60 Minutes episode beginning at 7:00 PM Eastern Time Sunday on CBS, offers a number of other tidbits from Jobs' life, including his views on death and the effect of extreme wealth on some of Apple's early employees, a perspective that shaped how he dealt with his own wealth.
Nearly All Apple Hardware Costs More Than the Average PC
Oct 20, 6:47PM
Setting aside the claim of analysts that Apple "missed" earnings last quarter, Apple sold record numbers of Macs (4.9 million) and iPads (11.1 million). During a conference call with analysts earlier this week, Apple CEO Tim Cook was asked about "cannibalization" -- the thought that increased sales of one type of product will impact sales of another. In this case, will iPad sales negatively affect Macintosh sales?
I do believe that we're seeing cannibalization. I think that it's showing up in 2 ways. I think that some people are electing to buy an iPad rather than a Mac. However, I believe a materially larger number of people are electing to buy an iPad instead of a Windows-based PC. And so I think we are overwhelmingly coming out very, very well in that cannibalization question. And I would point out that despite that, the Mac had its best quarter by far ever last quarter. And so even with having the best quarter on iPad with some cannibalizations in Mac, the Mac has its best quarter ever, which is almost unbelievable. And so with cannibalization like this, I hope it continues.*Cook believes that the iPad is cannibalizing the PC market, and to a limited extent, the Macintosh as well. However, with both iPad and Mac breaking sales records, things are good so far as Apple is concerned.
There is no doubt that the Macintosh is a premium computer offering, with the most inexpensive full-featured Mac being the $999 11" MacBook Air (the Mac Mini does start at $599 but needs an additional keyboard, mouse and display to work). For the first three calendar quarters of 2011, the average selling price (ASP) of all Macs, both notebook and desktop, was $1297.75. This is more than double the ASP of a generic Windows PC. For that same time period, January through September of this year, the average selling price of a Windows PC at U.S. retail was $491, according to NPD's Retail Tracking Service**.
In October 2008, long before the iPad made its debut, then Apple CEO Steve Jobs said this:
There are some customers which we chose not to serve. We don't know how to make a $500 computer that's not a piece of junk, and our DNA will not let us ship that. But we can continue to deliver greater and greater value to those customers that we choose to serve. And there's a lot of them. We've seen great success by focusing on certain segments of the market and not trying to be everything to everybody. So I think you can expect us to stick with that winning strategy and continue to try to add more and more value to those products in those customer bases we choose to serve.
But these days, Apple does make a $500 computer -- the iPad. The least expensive iPad is $499, precisely the price point Jobs claimed Apple couldn't make a computer that wasn't "a piece of junk." In fact, the iPad ASP for the first three calendar quarters of 2011 was $628, more than $130 higher than the average Windows PC. Perhaps even more incredible is that Apple's smartphone offering, the iPhone, had an ASP of $653 over the same period.
All three of Apple's most profitable product categories -- the Mac, the iPhone, and the iPad -- have average selling prices significantly higher than a generic Windows PC.
Analysts and other computer industry watchers typically compare Apple's computer sales with Windows PC's, assuming that comparing computers-to-computers is an apples-to-apples comparison. However, given that the ASP of the typical Windows PC in the US is less than ASP of all Apple's major products, perhaps a better comparison -- from a financial perspective -- is to add the sales numbers for iPhone, iPad, and Mac together.
The combined average selling price of the Mac and iPad -- Apple's most "computeresque" offerings -- is $852 for the first 9 months of 2011. When the iPhone is added to that, the combined ASP of Apple's three most popular products is $733, nearly 50 percent higher than average selling price of a Windows PC sold at U.S. retail.
In just 9 months, Apple sold 12.6 million Macs, 25.1 million iPads, and 56.1 million iPhones -- 93.7 million units for total sales of $68.7 billion dollars.
*Tim Cook quote via Seeking Alpha transcript
**The average selling price for a Windows PC sold at U.S. retail (for the first three quarters of 2011) was $491 based on NPD's Retail Tracking Service. The Apple ASPs used in this article are calculated from Apple's earnings reports, which are not broken out by country. This should be considered when comparing NPD's U.S. Retail numbers to Apple's worldwide numbers.
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