Wednesday 16 November 2011

Apple kills the Mac Pro? It doesn't matter

Claims Apple [AAPL] may abandon its Mac Pro products may turn out true, but it doesn't really matter. After all, it isn't about the way a computer looks, but what it does, and the future of the Post PC age is about pervasive computing, not power in a box. 
The times they are a-changin'
These claims aren't new. There's been mutterings from deep within Apple's developer channels ever since the introduction of the iPod, "Apple's management aren't so focused on the Mac platform any more," they said.
The introduction of the Mac App Store showed a more locked-in future for the platform, while the "iOS-ification" of Final Cut saw many pro editors scampering back to Adobe. Many industry-watchers noted Apple's move to rebrand Mac OS X as OS X earlier this year.

Apple isn't just on the desktop. It's in the cloud, in your pocket, in your bag and in your den.
Take the hard-nosed approach and follow the money, and a look at the company's financial results gives witness the declining importance of Apple's hardware sales -- just 22 percent of revenue, behind the iPad and the iPhone. The money's in mobile (which is why most UK people between 18-30 now have at least one Apple gadget).
A hard rain’s a-gonna fall
That's not to say the Mac isn't good business:
  • Mac sales hit an all-time record in the previous quarter (4.89 million sales).
  • Mac sales generated over $6 billion in revenue in the period.
  • Desktop sales -- including iMac sales -- accounted for just 27 percent of Apple's Mac sales.
  • Apple's desktop sales now generate just 5.94 percent of total revenue.
  • In the last quarter, iTunes became a bigger revenue generator than desktop Macs.
Take a look at the per unit revenue:
Breaking down Apple's financial statements you'll see the company makes an approximate average revenue of $1,313 per desktop it sells. In contrast, it makes a similarly approximate average revenue of $1,268 on each portable Mac.
It ain't me babe
"But what about the pro users?" some cry. "Apple can't abandon its heartland," other observe. "Who needz a Mac anyhoo, Androidz is duh big win," some remark, but we'll ignore those fanbois today.
The PC industry has changed.
It isn't about desktops and office suites and the workhorse in the corner. Those days are gone.
The future of computing is the device you hold in your pocket, the services and software as a service solutions you can access using that device, notions of distributed computing and the acceptance that you don't need all the power of the PC universe inside the device you own, you just need to be able to access that much power using cloud-based services now and then.
Imagine a bank of remote machines processing that image or video for you as and when you require -- that's got to be faster and more efficient than a couple of Macs you already own.

Don't think twice, it's alright
Today's portable computers deliver increasing quantities of horsepower. Recall the launch of the MacBook Air when Steve Jobs told us he thought this was the "future of the portable computer"? That statement wasn't just about portable computers, but all computers. One day you won't even have the computer, you'll hold a device in your hand which gives you access to all the computer you ever require. There's an inevitability to this.
PCs will still be around -- why else do you think Apple dropped the word "Mac" from its operating system name? Can you hear future licensing deals? Not now, not next week, but one day.
A move to dump pro desktops makes sense. As the relative value of portable Macs in comparison to smartphones and other devices changes, there's a future in high-spec MacBook Air configurations. Want a desktop experience? Plug it into your monitor and other devices using the new super-fast Thunderbolt I/O and a bank of peripherals, monitors and drives.
Will a mobile processor ever be as powerful as those made available for desktop machines? With so much investment and innovation going into the mobile space, I'm certain future breeds of next-generation mobile 3D chips will deliver at least as much and potentially more graphics and processing power than currently enjoyed by Apple's desktops.
Let's recap:
  • Desktop Macs are becoming less important for Apple revenue
  • Sales of pro desktops are low
  • Consumers want mobile devices and portables
  • Apple's aim is to introduce software experiences which can be used across all its platforms
  • The post-PC age is about access to solutions across multiple devices
  • Cloud-based services are coming of age
  • Technology improvements mean the difference in power between desktop and mobile machines will continue to shrink.
  • Processors for portable devices are improving rapidly, as r&d budgets are being switched to focus on mobile
The reasons really do stack up, don't you think?
AppleInsider observes the Mac Pro hasn't seen a significant design update for many years -- it still retains the same appearance as a pre-Intel system. Sales of the devices are declining -- even video creators tend toward mobile Macs; as do many studio and live music engineers.
Other than some high-end operations, most graphic design software runs fine on less well-powered systems. For high-end tasks? It isn't so hard to imagine external graphics processors connected to portable Macs using the Thunderbolt I/O. Why stop there? Surely someone at Apple is already dreaming up an iPad Pro?
Jokerman
I think its sentimental to expect Apple to continue to develop a high-end desktop Mac forever. For Apple's management, it isn't a question of whether or not the bell should toll on the pro desktop, it's a question of when.
Will this be the end of an era? Or the beginning of a new cycle of invention? Share your thoughts in comments below.
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