The annual ritual

The annual Apple computer wishlist.

This year Macworld will be held on January 10, 2006 and will provide much mystery in terms of the new offerings from Steve Jobs et al. The wishlist this year is more strategic then the actual product announcements that some are hoping for. The first one I think should seriously be considered.

What would the strategic value for Apple be if in the future all operating systems upgrades were free. The company earns a sizable amount of revenue from operating system sales, but would it be too costly to hand out all upgrades for free?

What would the effect on the marketplace be? Apple is one of only two firms in the world that are charging for upgrades, and it should be an area of competitive differentiation for Apple to clearly identify their difference to the other firm that charges for operating systems. This has been an area where Microsoft has eliminated many of their competitors in the past. Establishing the free browser was the fatal blow to netscape, as it then could not charge for its wares.

This would put Apple in the majority with Sun, Linux and most computer vendors that sell Intel boxes. The only firm remaining would then have to do the same when their long awaited and highly touted system arrives in 2007, or whenever. The reduced costs of the overall purchase would be offset by maintaining only a current offering, and more rapid reductions of the older systems, and the enhanced volumes of computers that could be sold.

The second recommendation or wish on the list is something that is inevitable. The innovation and building of a business around the iPod has to be winding down. They have done a good job, and the focus could now change to enhance the halo effect on their computer offerings.

With Intel, IBM, and Freescale providing processors to Apple there is none of the restrictions on the upside of selling computers. Complaining about IBM's slow response to provide PowerPC chips is inconsistent with the companies DNA. They do things themselves and now have the three major chip manufacturers providing them with their wares to ensure a solid volume of computers. Look to have the company increase the market supply of their offerings.

The rumor of having a home entertainment computer I think is a given. The video based iPod makes that a given. The war with the rest of the world for the home entertainment systems will have begun in earnest after January 10. Look for 40" monitors to go with those new systems.

I still would like to see more high end systems that are providing the "home server" type of offering. Having the data and applications that you use available anywhere and anytime needs a dedicated server that is fairly high end. The problem is the configuration issues, well handled by Apple traditionally, especially in their server based operating system. The other problem is the power consumption, heating, noise and size of a traditional 1U sized unit. An affordable home server would be something that I think would sell.

That's it, the demands for more are mitigated by the knowledge that the company will have a few surprises and the general mood of most mac owners, such as myself.