Steve Jobs at D (video) and a look at Apple today

In the video below, Steve mentions that Apple is currently in 3 businesses (Mac, Music, Phone) and has one hobby, Apple TV.

The Mac

I think most of us in the industry, those observant few, have seen more Mac adoptions in the past 9 months thanks to the release of Intel based Mac’s. With the release of Bootcamp and the success of Parallels (I use this product), there is a clear confidence for the savvy public to move to a superior computer experience.

Dell and Gateway all have or had direct-sales centers or stores to acquire new customers and support their existing ones. Dell recently announced the opening of two retail stores as an experiment. I say, they’re learning from Cupertino. Look what happens when you take the Apple Store presence, value and success into account, those two companies are incomparable to Apple.

For Apple, the Apple Store provides great traction as a low barrier entry for new and existing PC users to move to the Mac and an amazing way to acquire and support those users. This is a major advantage.

The Music (The iPod + iTunes Application + iTunes Store)

With the introduction of the iPhone, the iPod component will be the most desirable piece of the iPhone with its wide screen viewing area, its multi-touch screen capabilities and the combination of the iPod integrated with the Phone component in one device (i haven’t forgotten the internet component).

With the iPhone and iPod we again see the holistic experience. iTunes and the Apple Store are there to support these products to insure their success every step of the way. It is an unparalleled experience and support model.

In the video at D, Steve mentions at the end that iTunes has shipped more than 300 million clients. Whether those users have iPods or not the market penetration with the iTunes client both on Windows and on OS X is a huge success for Apple. The most important fact is, it gives Cupertino an open gateway to Windows users to roll out any device they’d like to sale on any market and provide a seamless support experience for those devices with a simple install of iTunes. This bleeds any competitive market, enough to incrementally acquire new users and customers, which then triggers the brand loyalty that Apple thrives on.

The iTunes Store is setting the pace for the digital media market for music, video and now educational experiences (starting with iTunes U - see http://itunes.stanford.edu). This is a rapidly evolving market, one that will not settle anytime soon as new labels and studios get on board with iTunes and its competitors. The iTunes Store is simply in place at Apple to be the baseline media source for the iPod’s, to push the evolution of the digital media market and to continue to incubate a future billion dollar business for Apple.

The Phone

For most users I suspect the combination of the iPod and phone component will be the key adoption driver. For me it is solely the cell phone with visual voice mail.

Phone companies have overcomplicated and overdesigned today’s current mobile phones. They are simply useless as communication devices. Sadly the networks aren’t any better. They can’t even get voice quality or delivery to a satisfactory level, trust me I am one of the many customers with a less than desirable experience and have wasted hours (many) on the phone with customer care, support and tech rep’s. This is why I am throwing my second Samsung i730 in the trash and ditching Verizon. I will take my chances with ATT and Apple.

Let’s talk about design. The iPhone is the best iPod Apple has ever made but it is also the first phone they’ve designed and it will be the best on the market once it ships. I expect to see a lot of design paradigms for phones as well as other I.D. interface designs to quickly adopt what Apple has built and designed.

The Apple TV

Now here is a device that I can sink my teeth into. From a technical early adopter I see a device with amazing potential. Apple ships a device for $300 capable of playing HD video, Music and it all runs on an install of OS X.

This is where hackers are invaluable to any new market and a company like Apple. These guys and girls will find away to scale and improve this device for Apple willingly and free of charge. You can slap on DRM free media, record any movie or show off of TV and even write an SDK for developers to build on top of. Will Apple stop this from happening? Don’t count on it.

The results of this product launch are a dream come true for Apple, especially since this is a “hobby” instead of a business. The Apple TV immediately becomes the most desirable home theater media manager and delivery system for a new market of users.

Steve is riding a big wave of success, especially since the Pixar acquisition. It is an amazing time in American business to see a company like Apple find its stride under the direction of someone as brilliant and passionate as Steve Jobs.

Apple stock: AAPL

rob.