Spreading FUD, Apple Style

Apple reported another blockbuster quarter yesterday (my WinInfo article will be up later today), primarily on the strength of first-wave iPhone 3G sales. But the company also took the rare step of including CEO Steve Jobs on its earnings conference call, and the mercurial aesthete used the opportunity to spread some serious FUD. When Microsoft does stuff like this, the Apple acolytes get up in arms. My guess is that they’ll not only give Jobs a pass (what else is new?) but they’ll celebrate it. There are only one-way streets in Apple-ville.

Here’s what he said, according to ZDNET:

Jobs also dropped the strongest hints yet that if the demand for low-cost laptops, and in particular netbooks, continues to grow, Apple will jump into this market. "The netbook is a nascent category and, best as I can tell, not a lot have been sold," Jobs said. "But we’ll wait and see how that category evolves and we’ve got some pretty interesting ideas if it does evolve."

Ah yes. Pre-announce something that doesn't exist. Cause potential competitors to reconsider entering a market that Jobs himself says is not very financially compelling.

FUD, pure and simple.

Discuss this Article 115

Dipsh t Admin
on Oct 22, 2008
Not a lot of sales??? Well, I can say it hasn't exploded yet, but ASUS plans to have sold 5 million by then end of the year. And it is estimated at about 10 million total so far, with by 2013, the market is expected to reach 200 million. Anyway, I can' t wait for the race to 300 comments, beating our old record ;)
Dude1313
on Oct 22, 2008
Strap in, this one is going to be a bumpy ride.
Waethorn
on Oct 22, 2008
....an iPhone is NOT a Netbook, sorry to say there Steve.
Ocean
on Oct 22, 2008
>>Cause potential competitors to reconsider entering a market that Jobs himself says is not very financially compelling.<< This is pretty baseless. Most of the best laptop makers are already IN the market: Dell, Lenovo, etc... Paul is fighting a strawman here. Not surprising.
Ocean
on Oct 22, 2008
>>Apple reported another blockbuster quarter yesterday (my WinInfo article will be up later today),<< Still trying to figure out how to spin it so as to take some of the gloss off? Unsurprising.
panache1023
on Oct 22, 2008
Where is the fear? Where is the uncertainty? Where is the doubt? FUD would have been something more like..."The netbook computers are not fulfilling their niche, and we feel are bound to fail, so we won't be entering that market".. That would cause fear for customers....that would cause uncertainty for customers....that would cause doubt for customers. Talk about being biased against anything Apple...this is the dumbest blog entry yet!
panache1023
on Oct 22, 2008
With this "blockbuster quarter" (using Paul's words), I'm still waiting to see the "sad end" for Apple that Mike Galos was referring to in the blog entry about Apple being libelous for their most recent commercials. Mike, where is that "sad end" you were talking about? LOL...I wish you weren't as intelligent as you are so I could call you an "idiot"...but clearly you're not... You're just blinded by your religion.
Ocean
on Oct 22, 2008
Awesome numbers: >>So, last quarter: (1) the iPhone was a bigger revenue and profit generator than either the iPod or Mac; (2) Apple sold more iPhones than RIM sold BlackBerrys; and (3) Apple trailed only Nokia and Samsung in worldwide mobile phone handset revenue (and they’re not far behind Samsung). -- As for where this growth positions the iPhone industry-wide, recall Microsoft’s projections for Windows Mobile licenses this year: The warning signs were there. After boldly proclaiming that it would sell “more than” 20 million licenses to its Windows Mobile operating system by the end of its fiscal year on June 30, Microsoft later scaled that prediction back to “nearly” 20 million units. This week, however, the software giant conceded it did not hit its target: The company sold just 18 million units in the fiscal year. So not only is Windows Mobile growth significantly slower than what Microsoft had publicly anticipated, but the iPhone seems set to surpass unit sales of all Windows Mobile phones combined next year. -- Despite continuing strong iPod sales and record-breaking Mac sales, how long until the iPhone is undeniably the primary product and platform made by Apple? My answer: Not long. And I think Apple’s executive team sees it the same way. << http://daringfireball.net/2008/10/the_phone_company
Ocean
on Oct 22, 2008
>>this is the dumbest blog entry yet<< I don't know...there are plenty of competitors if you read far enough down. :)
cesjr
on Oct 22, 2008
"When Microsoft does stuff like this, the Apple acolytes get up in arms. My guess is that they’ll not only give Jobs a pass . . ." And of course you give MS a pass when it does it. The only difference is that you claim you're an objective journalist. They don't. Also, in his usual breathless excitement to find something apple does that remotely resembles what everyone knows MS does, Paul looks past the real world implications. FUD only works well if its put out by a market leader whose word carries a lot of weight with the media and public in a given space. Apple is not a market leader in PCs or netbooks. I doubt many members of the public registered Job's comments. Even MS doesn't make as much use of FUD today. When the worst MS FUD occurred in the past, MS's word carried more weight than it does so today. Today they use it more in the enterprise space where MS has their IT lackies in power. Consumers stopped listening to MS a while ago.
lotsamystuff
on Oct 22, 2008
You're off the rails, Paul. It's really sad.
nutts
on Oct 22, 2008
As fauntleroy said, this isn't FUD. It's just a comment saying they're keeping their eyes open. Give me a break! And as Ocean predicted, Paul managed to take the shine off Apple's financials over on WinInfo, despite them exceeding expectations. What can we expect though, this is WINinfo/WINsupersite after all; can't go plugging how well the competition is doing. And it appears to be doing *very* well, which is good for everybody.
subzerohitman721
on Oct 22, 2008
I actually think that its a good idea to be defensive in this market. For Jobs to say, "We're not sure about this category" is his right. If I was in Apple's position, I would keep it simple until the market was ready for riskier moves. Look at all the businesses in the tech field that has or in the process of laying off employees this year. Google, Dell, Yahoo, Ebay, Sun Microsystems, etc. While netbook may be hot in the future, right now to go with traditional lines that are selling might just be the smart avenue. I may have differences with Apple and Jobs on the advertising and their fanatical fans, but they certainly know how to make money. Can't come close to denying it. This downturn is scarry and everyone is wondering what's next. There isn't any reason to "Jump The Shark" as you like to put it, Paul. Apple can use this time and their 25 Billion in reserves to focus on R&D. That I believe would be the best bang for their buck, until the consumer confidence has been restored. However, I do believe they should work harder to introduce more sub-$1000 products. Even a $700 to $800 Mac would be easier for me to jusify than their above $1,000 lines. Yes, I know about the old Macbook at $999, and most people were disappointed with that. The consumers of the PC want a good under a grand Mac. I think they'd make a killing and give Microsoft a real headache. Even I'd jump in if they made that kind of machine.
chuckb84
on Oct 22, 2008
Ah, I love it. In the Paul Thurrott bizarro world, the takeaway message from Apple's stellar numbers is "FUD". In the universe the rest of us inhabit, here's what happened. Apple outsold RIM. By revenue, Apple is now the 3rd largest cell phone vendor in the world. Apple has enough cash on hand to buy Dell outright. Mac sales are still growing at 2-3 times the rate of the overall PC market. Mac sales are at an all time high. Apple actually made much MORE money than they stated yesterday, because accounting rules require them to report a lot of the iPhone revenue as deferred. Any company on Earth would kill to report success like this. But, in the bizarro world, it's FUD. This place shouldn't be called whinesupersite.com, as some have suggested. It should be called sourgrapessite.com. Paul, you make yourself look small and petulant. Oh, and the bit from Paul about the Apple results being "primarily on the strength of first-wave iPhone 3G sales" neatly ignores the continued growth of both iPods and Macs, which were very robust. All 3 areas are growing, but since the iPhone is the newest, it's growing the fastest. BTW, the iTouch is reported with the iPhone, so moving that into the iPod category would give a more balanced revenue picture. This is a very strange comment from a man who is "all about the numbers" when he talks about marketshare.
DRWAM
on Oct 22, 2008
What's a 'netbook'? Is it the ultra tiny laptop with tiny screens and no power? Even if they are selling well, my guess is that Apple will never make one. They just can give the profit margin that Apple products enjoy.
johnpapola
on Oct 22, 2008
Paul, you're a tool. Truly. You're a complete hack vis-a-vis Apple. You've got nothing left on this site but to goad Apple users with ludicrous and scornful BS. Clearly you are seeing benefit since the rest of your posts garner no attention at all. This one will no doubt reach 100 comments in a matter of four hours. How is this "FUD"? He did nothing that should cause a potential netbook buyer to pause. If anything, he did the opposite and confirmed that Apple will NOT be entering the market in the near term. This is nothing like Microsoft's FUD. You know, like their FUD about linux IP liability. Or their longstanding history of detailed paper releases that never materialize. What Jobs did is the PRECISE OPPOSITE of that nonesense. Meanwhile.... look at that! They outsold RIM! They blew past 10 million phones in 2008 already! They may even be poised to outsell the entire Windows Mobile market by year's end, if not next year! I don't expect you to comment on any of that. Nope. You're too busy erecting a pathetic Strawman which you will immediately find surprising and take umbrage at. Your Apple commentary is trash, Paul. Total, scornful, emotion-driven garbage. Just go work for Microsoft marketing and get it over with. Then again, maybe you already are and, much like your buddy Rob Enderle, are just choosing not to inform your readers.
nutts
on Oct 22, 2008
Chuck said: "BTW, the iTouch is reported with the iPhone, so moving that into the iPod category would give a more balanced revenue picture." Just wanted to point out that according to the Daring Fireball article linked to above, the iPod Touch is grouped with iPods not the iPhone: "And in terms of the momentum of the iPhone OS as a platform, keep in mind that the iPod Touch is put on the books as an iPod, not an iPhone."
aemarques
on Oct 22, 2008
"Nota a lot have been sold"? Yeah, right... Since Apple does not have a product in this category, so, it is not worth it... I guess Asus thinks the same, too (not!): http://www.reghardware.co.uk/2008/07/21/q2_euro_pc_market/
aemarques
on Oct 22, 2008
@johnpapola: iPhone outsold RIM? I think not, unless, of course, you believe everything Apple says. http://community.winsupersite.com/blogs/paul/archive/2008/10/07/iphone-3...
chuckb84
on Oct 22, 2008
Nutts, You're right. I read that, but my lesdexia played me false...
johnpapola
on Oct 22, 2008
@aemarques... Apple sold more phones this past quarter than RIM. Look it up.
Nickelgreen
on Oct 22, 2008
Steve Jobs is definitely tired. Let's go forward...
Lindy
on Oct 22, 2008
"Talk about being biased against anything Apple...this is the dumbest blog entry yet!" BEST COMMENT IN RESPONSE TO THIS BLOG POST. NO NEED TO READ FURTHER!!!!!!! Now if you do where is Mike-GAS BAG- Galos with his "sad end" predictions? Or Weedpunk with his prediction of bad #'s being reported. I am going to guess they are stuffing their faces with humble pie. "my WinInfo article will be up later today" = I will spin/spew Anti-Apple BS and not give anyone a chance to reply since its in the article section. Sad. The market responded to the #'s call, currently up over $9 is the worst economy since the GD. As far as Steve's comments I just have no idea how you could consider them FUD or anything else. Apple does not play this game to dominate everything like MS. Given the economy and Apples strategic plans, sitting and watching what goes on with the netbook market in this economy is a good move. If it continues to grow Apple will release one with out a doubt.
gorath
on Oct 22, 2008
It definitely looks like Paul's got his nickers in a twist over nothing here. I think you're drawing the wrong conclusions, Paul!
Waethorn
on Oct 22, 2008
"What's a 'netbook'? Is it the ultra tiny laptop with tiny screens and no power? Even if they are selling well, my guess is that Apple will never make one. They just can[sic] give the profit margin that Apple products enjoy." I'm guessing that's the reasoning behind this: http://blogs.zdnet.com/Apple/?p=2418 Of course, when you price out a system with 2GB of RAM and a 160GB hard drive and it *ONLY* comes out to $924 with only a lowly GMA 950 in it, I guess they figure they should be charging double that. As a note, I've been offering "green" SFF Core 2 Duo E8400 (3GHz 1333MHz FSB) systems with 4GB of RAM, 750GB hard drives, GMA X4500HD chipsets with HDMI+DVI-I, eSATA, 7.1 audio, 8 USB ports, energy-efficient hard drives and power supplies for $999CDN (with a 3 year warranty) for awhile now, there's a good reason to pull the plug on the overpriced Mini. There goes the "low-priced" Mac....
DRWAM
on Oct 22, 2008
I read that the iPhone outsold RIM's Blackberry this quarter here: Apple: iPhones outsold BlackBerries in last quarter. http://www.cbc.ca/technology/story/2008/10/22/apple-3q.html At first I thought that the Curve and other RM products were not included, but I went to the RIM web site and saw that they are Blackberry's too, just different models.
trieste
on Oct 22, 2008
"Paul Thurrott's SuperSite for Windows is dedicated to you, the Windows user. Here, I provided all of the information you need to evaluate important upcoming technologies, including Microsoft Windows, Windows Server, Office, and Xbox 360, plus related digital media, Internet and home networking, and more, from Microsoft and its competitors. This Web site provides continuous updates about these future products and technologies, while offering reviews, technology showcases, FAQs and other articles all designed to give you the information you need to decide which upcoming technologies are right for you. If a technology is important to Windows users, regardless of which company makes it, I'm probably looking into it." ps I'll also whine about Apple a lot at the expense of the above. Kisses.
Waethorn
on Oct 22, 2008
@Doc: The other side of the coin is this: "Over the long haul, RIM is still the leader, having sold 23 million BlackBerries to Apple's 13 million iPhones in the time since Apple released the first-generation version of its device in the summer of 2007." "Part of Apple's edge in the quarter can be attributed to RIM's delays in releasing the Bold into the U.S., the company's largest market. But turmoil in the financial industry threatens to eat into the bottom line of both companies. As a result, Apple issued what it called "prudent" predictions for the current quarter, citing broader economic uncertainty. Chief financial officer Peter Oppenheimer said Apple expects to earn $1.06 to $1.35 per share on sales from $9 billion to $10 billion."
au071
on Oct 22, 2008
And that's why Apple computer will always just be a small player. It, or Steve Jobs, just have no interest to open up to the general public. Well, there will always be Apple fan boys...
Waethorn
on Oct 22, 2008
@Doc: Funny you should be citing that from a Canadian news source. BTW: Have you ever watched this show?: http://www.cbc.ca/littlemosque/ (get the little woman to do up one of Fatima's recipes!) or this one: http://www.ctv.ca/servlet/ArticleNews/show/CTVShows/20071221/home-sniper...
Ocean
on Oct 22, 2008
Waethorn is trying hard to change the subject. I think sometimes Paul posts here under another name... >>He did nothing that should cause a potential netbook buyer to pause. If anything, he did the opposite and confirmed that Apple will NOT be entering the market in the near term. This is nothing like Microsoft's FUD. You know, like their FUD about linux IP liability.<< +1 >>"my WinInfo article will be up later today" = I will spin/spew Anti-Apple BS and not give anyone a chance to reply since its in the article section. << +1 >>Apple actually made much MORE money than they stated yesterday, because accounting rules require them to report a lot of the iPhone revenue as deferred. Any company on Earth would kill to report success like this. But, in the bizarro world, it's FUD. This place shouldn't be called whinesupersite.com, as some have suggested. It should be called sourgrapessite.com. Paul, you make yourself look small and petulant.<< +2
Ocean
on Oct 22, 2008
Looks like good things happen when you partner with Apple: >>AT&T reported a slight boost in profits this morning, and the carrier has quite a bit to boast about, especially on the wireless side. iPhone activations reached 2.4 million during the third quarter, and 40 percent of those iPhones were sold to new subscribers who activated on the AT&T network. -- Total revenue for the carrier was $31.34 billion, up from $30.13 billion the same period last year. That led to profits of $3.23 billion for the quarter, up from $3.06 billion from the third quarter of 2007. AT&T should retain its wireless lead with 74.9 million subscribers after gaining 2 million during the quarter. << http://gigaom.com/2008/10/22/att-is-sitting-pretty-with-iphone-and-u-verse/
DRWAM
on Oct 22, 2008
I though Wae was giving me a link to make me laugh. Wae, I've been to Canada several times as I grew up in northwestern PA. I even visited for lunch one day with a Kiwanis group and visited a winery. I think it was Bright's in St Katherinesbusg maybe, but that was a long time ago. It's a little fuzzy as they gave free samples [hiccup!]. That's was one of the good things about looking older than my age.
adamb1000
on Oct 22, 2008
I fail to see the FUD here. Steve Jobs is voicing his opinion on the sub $800 market and pretty much said they'll enter it as the demand for them grows. Whats your point? This is just another attempt to attack Apple for no reason at all.
Lindy
on Oct 22, 2008
I vote for the appleagrosupersite.com "to be angry or hostile for no reason" http://www.urbandictionary.com/define.php?term=agro
adamb1000
on Oct 22, 2008
Oh and BTW had steve balmer said the same thing as Jobs did I can guarentee you wouldnt hear Paul insult MS, infact he would probobly applaud them.
scoobyclub
on Oct 22, 2008
Not worth commenting on!
mikegalos@msn.com
on Oct 22, 2008
To respond, yet again, to my "sad end" comment from two days ago... Back in the old days of Lisa, the original Macintosh, and to a lesser degree the Apple ][, there were several things that were true of an Apple computer: 1) They were incompatible with the software everybody ran 2) They were much more expensive than the competition 3) Their interoperability was questionable at best 4) They were pretty 5) They were a generation or two ahead of everybody out there in at least a few major areas of technology And people bought them to have the latest, most exciting technology despite the price they'd pay both financially and in limits of the platform. After a few years of Scully, Spindler and Amelio that changed to: 1) They were incompatible with the software everybody ran 2) They were much more expensive than the competition 3) Their interoperability was questionable at best 4) They were not that pretty anymore 5) They were less and less technologically advanced every year and had massive failures like Gershwin, Copland and the AIM Alliance Talligent fiasco until they fell behind on technology. And people still bought them but no longer because of the technological lead. Eventually, Steve Jobs was brought back and that changed to: 1) They were incompatible with the software everybody ran 2) They were much more expensive than the competition 3) Their interoperability was questionable at best 4) They are pretty again 5) They stopped trying to lead in technology, played catch-up and focused, instead, on developing a niche following and turned to lying about the competition hoping the uninformed would infer that they still had a technology lead they'd long ago abandonded. I'd call going from being a generation or two ahead of everyone else to having to base their advertising on lies to keep surviving in one small niche a sad end. Wouldn't you?
gorath
on Oct 22, 2008
I think I'll have to check my medication, but it sure does feel like I'm actually in agreement with people who are usually Apple "Fanbois" here.
Lindy
on Oct 22, 2008
So when is the "sad end" coming? I just want to know when I have to go out and buy my self a Windows Vista SE or um R2 or ummm 7 PC.
Kirk M
on Oct 22, 2008
There's no FUD here. Steve Jobs is only doing what any savvy head of a solid "niche" company (*niche" meaning in the area of home and business desktops, servers and laptop/notebook computers only) should do and that's watching the market before investing heavily into another area of the same overall market. It doesn't matter how much money Apple may have in it's coffers, if you don't own the majority of the market you're looking into (no offense here, just checked today's Internet Applications, Market Share report), you can't afford to invest foolishly or on an "Everyone else is doing it so why not us?" type of whim. Personally, I think Apple might actually be very successful in the low-cost "Netbook" arena, the key phrase here being "low cost". Something that Apple seems to have a hard time doing. Be that as it may, a scaled down version of OSX might just make an ideal OS for anew type of netbook. If Apple eventually decided to enter into this netbook market sometime in the near future and could actually keep the price below $400.00 per top-end unit to start with, the other manufacturers currently in this market might find themselves with something to worry about. I know that where the majority of my home computer tasks simply require the use of a Windows based PC, if Apple came out with a competitively priced netbook (equivalent in price to a top-end Linux based Asus Eee PC for example--wouldn't that just knock MS on it's arrogant butt?), I'd probably happily buy the thing.
gorath
on Oct 22, 2008
Mike, are you using the word "end" to mean something along the lines of "an end to a means", rather than "end of trading?"
chuckb84
on Oct 22, 2008
Mike, Nice long post that has nothing to do with the discussion in this thread. Everyone understands what you think about Apple, we just don't agree. What is striking here is the complete disconnect between what Apple said and the snippet Paul chose to highlight. Like I said, bizzaro world.
DRWAM
on Oct 22, 2008
Kirk, good points but it will never happen. But I'm sure you know that too. Doc The Sub $400 Acer laptop that I bought exceeds my needs and expectation. I'm sure tayme's sister will agree as well. I don't know what the profit margin is, but do know that although it's not for everyone, there is a good market for less expensive hardware. With today's technology, the less expensive stuff can do a lot, even make DVD's. It's a wonderful life of tech that we live in today.
mikegalos@msn.com
on Oct 22, 2008
gorath I'm using "sad end" to mean that a company that once prided itself on being ahead of everyone else in technology, a company that once had a vision of using cutting edge technology to bring personal computing to "the rest of us" ending up as a sad shadow living on past glories and more and more relying on deception to validate fans who think the days of past glory are still going on. As an international and historical analogy... Rome was once a flawed giant that controlled much of the world. A millenia and more later, Benito Mussolini convinced his deluded followers that modern Italy was still that great colossus merely needing a new caesar to restore their greatness. But 1930s Italy wasn't the Rome of the Empire. And Apple in 2008 is not the technology leader of Lisa, LaserWriter and Macintosh. And the sun now sets on the British empire.
mikegalos@msn.com
on Oct 22, 2008
Chuckb Complain, instead, to those who posted about my two day old comments in this thread. I answered them.
daveinla
on Oct 22, 2008
+1 stupid blog entry and comment... move on
Kirk M
on Oct 22, 2008
Doc, Yup. :)
Ocean
on Oct 22, 2008
So Paul...any comment?
Dude1313
on Oct 22, 2008
Anyone else notice Mike's last comment: "I'd call going from being a generation or two ahead of everyone else to having to base their advertising on lies to keep surviving in one small niche a sad end. Wouldn't you?" Interesting side step,anyone else notice it? He speaks nothing about the success of Apple this quarter (much like the being the Fonz, eh Tayme?) and tries to shift it back to Paul's rant of a few days back. All the while using an oblique reference of "blaming" those who bring up two day old arguments... As far as the Rome analogy, funny you mention that, according to the way you interpret technology: all roads lead to Microsoft...

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