http://www.flickr.

com/photos/fukagawa/

@WAR
THE AGE OF APPLE EXPANSION
Prepared by SidGabriel
 What's New at Apple Corp?

http://www.flickr.com/photos/myuibe/

• A New Age of Aggressive Expansion

• Potential Monopoly of Mobile App Market

• Every Major Tech News Publisher Owns Apple Stock.

 AAPL vs ADBE
• Flash Prohibition on Apple Devices Raises Net
Neutrality Issue.

• Apple to decide which content consumers can access?

• Apple claims Flash Prohibition is a technical concern

but conflicts of interests from Apple's iTunes store
limit credibility.

• A "good faith" effort to support Flash has never been

made by Apple.

• AAPL to benefit when content cannot be streamed

via hulu.com et.al. and must be purchased from
iTunes store.
iPhone Terms Of Use Clause 3.3.1

• Clause changed to block Adobe from

providing development tools for iPhone, iPad.

• Apple was in contact with Adobe during

development of the Flash packager for
iPhone.

• Apple changed the terms of use 1 week

before Adobe's product launch.

• Adobe was forced to scrap a project Apple was always

aware they would never approve. The cost to Adobe was
in the tens of millions and thousands of man hours.
AntiTrust & Apple SDK EULA 3.3.1

• 3.3.1 prohibits developers who do not work in objective c

from using third party tools to "package" their applications
written in other languages as iPhone apps.

• Sherman AntiTrust Act States "Every contract,

combination in the form of trust or otherwise, or
conspiracy, in restraint of trade or commerce among the
several States, or with foreign nations, is declared to be
illegal."

• 3.3.1 is an end user licensing agreement which restrains

commerce and trade.
 AntiTrust & Apple SDK EULA 3.3.1

• 3.3.1 is a section of an agreement

developers must sign to work with
Apple's iPod, iPhone and iPad

• Sherman AntiTrust Act Makes

illegal "An agreement which
unreasonably restrains
competition and which affects
interstate commerce"

• http://en.wikipedia.org/wiki/v#cite_note-15
 Acquisition and Closure of lala.com

• lala.com cloud-based streaming

service model competed with
iTunes.

• lala.com was the chosen music

service for Google's forthcoming
ChromeOS

• By closing lala.com Apple

removed a competing service
and stripped ChromeOS of it's
popular music service.
 Apple vs Freedom of The Press

• Prototype iPhone "lost" by engineer.

• Gizmodo could not have known the device was

authentic when it paid 5k to see it.

• Apple effort has been focused on jailing the journalist

who ran the story

• The engineer who lost the prototype was not fired.

• If the engineer is not fired and the journalist is attacked

to the fullest extent possible, the imbalance suggests that
the engineer left the device behind on behalf of Apple.

• Effort to force the investigation of a tech news blog for

running a story on a mystery device left in a bar is a
waste of taxpayer money unless equal effort is made to
investigate why the agent of Apple who placed the
device in the field has not been let go.

• Can I place my own mystery device in a bar and sue a

blog that posts it's picture?
 Marginal Substitution Curve

• Defines which products can be

substituted for others. Substitution Curve

• Wide = Consumers have choice

of many options

• Narrow = Consumers have few

alternatives.

• Wider marginal substitution

curve = healthy market.

http://en.wikipedia.org/wiki/Marginal_rate_of_substitution
 Apple and The Marginal
Substitution Curve

Substitution Curve
• Buy-to-Kill" Acquisition of
competing services.

• Manipulation of Consumer
Choice By Prohibiting Major
Web Plugins.

• Reducing consumer options.

 Critical Approaches To Apple

• Expansion is the clear driving directive at Apple and the most credible
behavior to anticipate.

• Apple will expand to the size permitted by law.

• Apple plans to test each boundary and precedent government has set.

• By aggressive attack of Adobe, Google and Silicon Valley Venture

Capital, Apple has very little "goodwill" in industry left.

• Apple's conflicts of interest eliminate technical credibility.

• The number of writers and editors who own Apple stock undermines
the credibility of most news sources.
 iApple

The extent to which Apple expands is equal to the

distance Apple drifts from it's core competitive advantage:
The Makers of Things and Culture who will never be
mainstream and never participate in monoculture.
 What Apple Must Do

• Without purpose, Apple will

never be able to operate on
the scale that Google has.

• Google's mission: "To

organize the worlds
information" is key to it's
ability to scale at peace with
industry.

• Apple must find a purpose to

draw in support and create
context.
APPLE MUST FIND PURPOSE
before the end of jobs