disruption

In yesterday’s post, we referenced the interview with Best Buy CEO Hubert Joly:

The tablets boomed and now are crashing. The volume has really gone down in the last several months. But I think the laptop has something of a revival because it’s becoming more versatile. So, with the two-in-ones, you have the opportunity to have both a tablet and laptop, and that’s appealing to students in particular. So you have an evolution. The boundaries are not as well defined as they used to be.

The line between tablet and laptop have indeed blurred. People are increasingly using tablets and laptops for both work and play. Going forward, I believe the most meaningful market segmentation is not one based on devices (phones, tablets, laptops, desktops), as we tend to do today, but by screen size (2-inches and below, 3- to 6-inches, 7- to 9-inches, 10- to 13-inches, 14- to 17-inches, and above).

From those lens, the positions of the three incumbents — Apple, Microsoft and Google — look different. Apple doesn’t seem as strong; Microsoft still has a chance; and Google just needs to extend its disruption upwards.

Read Full Article

Ben of Stratechery posted an interesting article about how Apple TV can disrupt the game console market.  It’s insightful and I highly recommend you read it; then come back here for my take.

I have two areas of push back:

  1. The high end games market is still largely mainstream and still growing
  2. The low end market already exists and is already well served with mobile phones, tablets and previous generation consoles

Apple has a chance to disrupt Sony and Microsoft, but it won’t be through the Apple TV.  Casual gamers won’t purchase a new device for games they can already play on existing devices.

For Apple to make inroads to gaming on TV, it should be via a Chromecast type device that connects the iPhone or iPad to the TV plus a controller.  Price all that for $60 and Apple can disrupt Sony and Microsoft.

Read Full Article