Sean Udall is a Minyanville contributor.Interesting article on Hewlett-Packard (NYSE: HPQ) beating Apple (NASDAQ: AAPL) to the "touch" with regard to providing a touch screen interface on a computer. It's certainly a worthwhile read. However, I've long commented on AAPL and its particular touch technology being infused into its computer lineup in some way. Laptops will likely be the first enabled. However, I'll take some assertions in the article to task.
While AAPL is known to be a first mover and always have that advantage, that's not always the case. I think it's more the fact that when the company does something it just executes so well and improves an existing product category so dramatically that people think it's a first mover product.
It certainly was very late entering the cellular market but did it spectacularly with a game changer. Portable music devices were around for years and the iPod was the ultimate game changer. In fact, the continued iPod dominance with this mature of a product is simply shocking. I could give more examples but the point is made.
Also, AAPL has not really had the need to do something like this. The company is still selling Macs and Macbooks at record pace so they are smartly milking its current lineup while still taking advantage of its strengths.
Lastly, I wanted to make the point that these distressed end-market conditions may be setting up AAPL for even more stunning market share gains. To me it looks clearer everyday that the cellular phone/device market is going to be dominated by fewer players with multi-function handheld devices like the iPhone (likely AAPL, Research in Motion (NASDAQ: RIMM) and Google (NASDAQ: GOOG)).
Moreover, I expect the market share gains for AAPL to accelerate in the computing space. Tough times make for more discerning consumers. The company will investigate, demo and decide to make a choice that stands. The lifecycle for Macs are longer and while the price point is higher, during times of strained conditions, quality can outsell price if the value proposition is high. With the AAPL computing lineup that value proposition is very high. So look for AAPL to continue to execute and gain share over the next 1-2 years. I have a knowing feeling that AAPL may gain more share in the next two years than it did in the last two.
Professor Adam Katz referenced HPQ with regard to massive market share gains being had in the tech space. I couldn't agree more and have been thinking that same thing with AAPL and other select technology leaders. This will be true with at both the retail and commercial spaces and Cisco (NASDAG: CSCO) said as much on its last call.
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Reader Comments (Page 1 of 1)
11-19-2008 @ 5:49PM
Mike O said...
Fujitsu was actually the first to make touchscreen notebooks.
The inherent problem with a touchscreen desktop is that you'd use it like a touchscreen ATM. It gets tiring quickly and you smudge the screen badly.
Apple upgraded their latest notebooks with a large glass trackpad which supports multitouch. This gives you all the benefits of gestures without having to touch the screen itself.
11-19-2008 @ 5:33PM
Tam said...
So when do you buy? When will the stock rise? It seems at the moment the general mood is to sell sell sell all over the place regardless of whether a company is doing well. When will it bottom out? Apple stock has nearly cancelled out two years of gains, while profits and revenues have increased consistently.
11-19-2008 @ 6:36PM
Dan said...
The HP technology is actually completely rudimentary compared to the offerings of Microsft and Apple. The "touchscreen" HP is implementing is a dual-optical touchscreen. That means that optical pickups on the edges of the screen understand where your fingers are at any time by bouncing light off of them.
Apple uses a capacitive touchscreen where the actual screen can sense pressure, texture, and electrical variations at your points of contact. This results in an incredibly more advanced application of precision and accuracy.
HP is years away from duplicating that achieved by Apple and Microsoft. HP's technology is nothing more than a "slight-of-hand" gimmick to try to sell crappy computers. I have personally used an HP touchsmart... and the results are severely limited.
A savvy consumer, investor... and financial blogger... should know this.
11-19-2008 @ 8:24PM
bubsy seo test said...
A computer is a machine that manipulates data according to a list of instructions.
Fujitsu was actually the first to make touchscreen notebooks.
11-20-2008 @ 2:38PM
chano said...
Where did you learn English? In America? Even a K-12 kid in Zimbabwe or Sri Lanka knows better than to say ...'iPod dominance with this mature of a product ' .They would say 'with such a mature product' or with a product so mature'.
Also, maturity does not equate to 'old'. It can mean improved or evolved, neither of which is a disadvantage. The average Rolex or MErcedes product is also mature in terms of its essential internals. Yet they remain cutting edge products, like iPods, because those internals are excellent.
You are no journalist.
1-10-2009 @ 5:44PM
lilypad2040 said...
HAHA... I'm doing a report on this kind of a computer and i was going to use this page as some of my info for it but lol i read the comments first and WhO ever Chano is is funny- and soooo right!!! This page will not do for my plagerizing, gotta keep searching,thankz hehe jk :)
I DON'T PLAGERIZE!