Best point Apple can make: Perhaps most important, our business does not depend on collecting personal data.
Apple wants to secure several big advertisers before the platform’s launch. But that’s a tall order, considering that Apple is entering a crowded market. Arch rival Google has already announced a subscription-based music streaming service. Amazon is rumored to be in talks to launch a service of its own. Even incumbents like Pandora and Spotify, which have large followings of devoted users, still aren’t profitable.
We all saw what happened when Apple tried to introduce a second class mapping native app to their iOS platform. Do you think Apple is in good negotiating position with Google over their default search engine in iOS? That depends on how much Tim thinks of Bing.
According to a report from Morgan Stanley, Google could pay more than $1 billion in 2014 to remain the default search engine on iOS.
There’s a conference called Techonomy going on right now and some panelists were asked which big tech co was the most vulnerable. My favorite part was this bit on Apple:
Apple’s stores could become a big weakness, too, Ellison said. Sure, they’re a “tremendous advantage” now, but Ellison said IBM had a similar network of stores, which “became an albatross in the ’90s.” To reinforce his point, he asked the audience if anyone had set foot in a Disney store recently, and no one raised their hands, but he said that that question would have gotten a very different answer a decade ago. Apple could follow a similar pattern, Ellison argued. If its product momentum slows, the stores could become a big drain rather than an asset. (via Who’s Vulnerable Among the Internet’s ‘Fantastic Four’? Techonomy Panelists Say It’s Apple And Facebook | TechCrunch.)
Owning your own distribution by building stores is great when you have a hot product because it builds more leverage in your value chain. However, that leverage can come back to bite you in the ass if your product begins to stumble.
What would Apple do when it gets to that point? Can you imagine the day that Apple has to start selling Microsoft and Google devices in their stores? Or do you think they’d just shut down their stores?
As if you haven’t Meeker’s latest internet report yet:
Meeker believes that the current problems with mobile monetization are just a temporary issue. She believes that mobile monetization levels in the U.S. could surpass the desktop within 1-3 years. “Mobile monetization,” in her view, “has more going for it than early desktop monetization.”
Check out the list below and it’s hard to say that the situation would be similar if Apple/iOS’ wasn’t a big part of the mobile ecosystem. How the mobile platform war plays out will have huge implications on mobile monetization trends going forward.