Why Apple’s Success Makes No Sense To Me, and Why The Zune Breaks My Heart

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Okay, the headline is a little misleading. The folks at Apple are downright brilliant in their business approach. I mean, I saw all that they announced at their “Rock ‘n Roll News Conference” or whatever they called it, and it had little substance. But the flash that came with it drove people insane. More people in this world watch with baited breath all the live blogs about Apple’s “announcements”, and they blindly ignore press conferences from our President or current events from around the world that will actually be relevant in their lives.

So, yeah, Apple’s got a good marketing department (except they need to find a new format for commercials – yes, I get it, if I get a Mac, I’ll be as cool as the nerdy kid from Dodgeball and Accepted. Sign me up. I use a PC so I must be a fat, nerdy guy, right?). So why do I say I don’t understand it?

If you boil down Apple’s products, from a pure technological standpoint, it’s a mixed bag. They have certainly done some innovative things with the iPhone and the iPod Touch. There’s no denying that. It’s simply amazing that there are so many apps that you can purchase, and Apple is making a killing on it. But at what expense?

  • Apple seems to forget the initial purpose of the technology. The iPhone is not an iPod, nor is it a computer. At its core, it’s a phone. The main reason people rely on this thing is because it’s a cell phone. It replaces whatever cell phone they are using. As such, it needs to have the functions of a cell phone. Cell phones today can handle MMS (that means “texting” pictures and videos to other phones). Why did it take Apple until version 3.0 to include this? They basically said, “We’re releasing a phone that doesn’t have all the functionality that your current phone has, but we’re going to add a bunch of other stuff you never knew you needed instead!”
  • The price points are obnoxious. Mac laptops top $1,000 on the low end. My favorite argument from Apple fanboys is that they are cheaper in the long run. Yet, most people don’t buy new computers because their old ones all of a sudden stop working. They buy new computers because technology advances and they want the newest and latest functionalities. So they will get rid of their Macbooks for new Macbooks. On top of that, iPhones are priced at levels formerly reserved for business phones, and the monthly fees are astronomical. I grow very weary of listening to people complain about the tanking economy and how many people are running around with no money, because they are willingly choosing to pay exorbitant prices for these things. [Note: this is not a defense of Windows. I have the same gripes about their software, too.]
  • In some ways, their business model is outdated. I just got done reading an article about Netflix in this month’s issue of Wired. The beauty of what Netflix is trying to accomplish is providing all-you-can-eat content and entertainment at a flat rate. Microsoft has done the same for music with the Zune (see below). Now, the iTunes Store was revolutionary at the time – a la carte downloading of your favorite music legally. But without a subscription option, they are losing their grip on music.

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Now, on to the Microsoft Zune. The company recently announced their newest release, the Zune HD. This is such a beautiful, worthwhile device that is lost on so many techie nerds that are writing reviews condemning Microsoft for what they consider to be a “too little, too late” product. Their biggest gripe? The lack of an app store. Yes, every reviewer in the world seems to feel that everything needs an app store because Apple has one. And you know what? Palm did that with their Palm Pre, and all I saw was articles about how they didn’t have as many apps as Apple’s does. So why bother? Are we keeping up with the Joneses here?

And those reviewers are missing the point: the Microsoft Zune is, at its core, a media player. You can add other functionality if you want, but the device is designed clearly for music lovers. I’m a music junkie – I love finding new music to rock out to. I find the local radio extremely limiting. When I decided I was getting an mp3 player, I narrowed it down to an iPod or a Zune. Do you know why I picked the Zune? The Zune Pass.

The Zune Pass is one of the giant elephants in Apple’s rooms that nobody seems to notice. For $14.99 a month, I get – quite literally – unlimited music. There isn’t an artist I can’t find in the Zune Marketplace, either. I’ve had my hard drive crash several times, and I haven’t missed a beat on my music, because it’s easy enough for me to repopulate my library with unlimited music at a few clicks of my mouse.

And the Zune HD, along with the accompanying update to the Zune desktop software, has taken the awesomeness of unlimited music to new levels. First, they added a “Quickplay” feature, which to me has been long overdue. I’m a big fan of throwing my Zune on random when in the car, and I often find myself hitting “next” over and over again until I get to something I recently downloaded. Now, I can use the “Quickplay” feature to listen to recent music, and I can manually “pin” albums to the “Quickplay” playlist, too.

In addition, my new favorite feature is the Smart DJ, which works like Pandora, and it is the true benefit to having a Zune Pass. If you’ve ever used Pandora, you know that you can enter in your favorite artist and it will put together a “radio station” that you would probably like, based on your musical stylings. The Smart DJ lets you do the same thing, but integrates the station with your current collection, along with the entire Zune Marketplace library. With a Zune Pass, you can listen to whatever you want, whenever you want in the Zune Marketplace anyway. This was a development that just makes sense.

They’ve also added high-definition radio capabilities to their built-in FM radio. Oh, and if you hear a song on the radio that you like, you can flag it on your Zune and download it when you hop on a wireless connection. You know what Apple announced as their latest iTunes development? Liner notes. They thought it would be cool to have “bonus features” on their albums like liner notes and other stuff like that. Yup, the iTunes store has all the innovation of vinyl records.

As criticisms mount about no “Zunephones” or app stores, Microsoft has quietly and deliberately perfected the music experience of having an mp3 player, while Apple continues to push farther and farther from what got it there in the first place: music.

I’m a Zune fanboy. I bang the drum and wave the pennants. You know why? Because the Zune caters to the need I want it for the most – my love for music. That’s why you get an mp3 player. So, as a Practical Nerd, I want to encourage you to go get a Zune for your music needs. I don’t want you to do it to “stick it to Apple”. I don’t want you to do it in hopes that you will drive up sales of the Zune. I want you to do it because I honestly believe that, as a music lover, you won’t get a more pleasant, complete, or innovative experience.

Enjoy your weekend.

  • Martin Hill

    Another important issue is peripheral support.

    As a music lover, having 70% of cars equipped with iPod dock connectors as an option or even standard means you can control the iPod from your steering wheel controls and get proper line-level audio input for the highest quality audio fidelity.

    Likewise, with just about all decent audio systems from clock radios, to mini hifi systems to high-end sound systems featuring iPod docks, you severely limit yourself going the Zune route.

    @Matt B,
    Apple doesn’t have DRM on any of their iTunes music whereas subscription services like Zune Pass are highly DRM-ed.

    -Mart

  • Lava

    @MattB

    Ummm you do know the iTunes store went completely DRM free like last year or something? Every song sold there now is completely unprotected 256kbps AAC.

    Not the case for video content but that’s because studios are still demanding DRM just like every DVD is still protected by CSS even though it’s useless.

  • Lava

    @MattB

    Ummm you do know the iTunes store went completely DRM free like last year or something? Every song sold there now is completely unprotected 256kbps AAC.

    Not the case for video content but that’s because studios are still demanding DRM just like every DVD is still protected by CSS even though it’s useless.

  • MichaelJ

    Nerd and the rest of you should read “From OLED to Tegra: Five Myths of the Zune HD” — RoughlyDrafted Magazine http://bit.ly/4hE3gZ

    As for MattB — you seem ignorant of the current state of non-DRM music. Apple has always been a fan of non-DRM music but could not get the music industry to buy in. As Apple began to dominate the industry the pwoers that be tried to prop up other providers by giving them the ability to sell non-DRM music which failed. The industry gave in when Apple agreed to give them some price flexibility and dropped the DRM from iTunes. Besides we all know that the DRM was easy to get around, so your point is pretty hollow. DRM or not, the market has shown that it did not care, as Apple is the 800lb. Gorilla in the room. They have surpassed all other retailers of music.

    The Zune HD is just another bump in the road, as MS is too far behind in the App market, and since this is a child of Windows Mobile, it will be stuck in a permanent state of suckage. My Touch does more and does less if I want it too. I have the control. I can even jailbreak it if I choose. The other thing is that when MS changes it’s mind once again I won’t be stuck in Never Plays for Sure territory.

  • MichaelJ

    Nerd and the rest of you should read “From OLED to Tegra: Five Myths of the Zune HD” — RoughlyDrafted Magazine http://bit.ly/4hE3gZ

    As for MattB — you seem ignorant of the current state of non-DRM music. Apple has always been a fan of non-DRM music but could not get the music industry to buy in. As Apple began to dominate the industry the pwoers that be tried to prop up other providers by giving them the ability to sell non-DRM music which failed. The industry gave in when Apple agreed to give them some price flexibility and dropped the DRM from iTunes. Besides we all know that the DRM was easy to get around, so your point is pretty hollow. DRM or not, the market has shown that it did not care, as Apple is the 800lb. Gorilla in the room. They have surpassed all other retailers of music.

    The Zune HD is just another bump in the road, as MS is too far behind in the App market, and since this is a child of Windows Mobile, it will be stuck in a permanent state of suckage. My Touch does more and does less if I want it too. I have the control. I can even jailbreak it if I choose. The other thing is that when MS changes it’s mind once again I won’t be stuck in Never Plays for Sure territory.

  • iphonerulez

    I just don’t want to be the guy who everyone is snickering behind my back and derisively pointing out that I’m the only one using a Zune HD.

    Just kidding. We all buy what we feel is the best choice as an individual and I’m ensconced into the Apple ecosystem and have been so for nearly 30 years. I’m an Apple investor and I’m an Apple/Mac/iPod user. As long as Apple is doing well, the products and being highly acclaimed and they’re coming out with hot products one after another, there’s no way I’m jumping ship. It’s basically brand loyalty.

    I’ve only seen reviews of the Zune and it seems to be a more than adequate media player, but without those games and apps that Apple has, I’d think the Zune HD is pretty much outmatched. I don’t believe people are going to pass up the Apple mobile ecosystem for just hardware alone. Zune HD sales are bound to sputter in a few months and that will be the end of that. The Palm Pre all over again. Not enough apps to drive sales. Think of that little white duck that’s always running around bumping into things and yelling “App-lack, App-laaaaaack!” That duck is the Zune HD mascot.

  • iphonerulez

    I just don’t want to be the guy who everyone is snickering behind my back and derisively pointing out that I’m the only one using a Zune HD.

    Just kidding. We all buy what we feel is the best choice as an individual and I’m ensconced into the Apple ecosystem and have been so for nearly 30 years. I’m an Apple investor and I’m an Apple/Mac/iPod user. As long as Apple is doing well, the products and being highly acclaimed and they’re coming out with hot products one after another, there’s no way I’m jumping ship. It’s basically brand loyalty.

    I’ve only seen reviews of the Zune and it seems to be a more than adequate media player, but without those games and apps that Apple has, I’d think the Zune HD is pretty much outmatched. I don’t believe people are going to pass up the Apple mobile ecosystem for just hardware alone. Zune HD sales are bound to sputter in a few months and that will be the end of that. The Palm Pre all over again. Not enough apps to drive sales. Think of that little white duck that’s always running around bumping into things and yelling “App-lack, App-laaaaaack!” That duck is the Zune HD mascot.

  • Sean

    @Matt B……

    “My problem with Apple and some of the big names is DRM and a monopolistic mentality. I will never download a protected song. iTunes is horrendous in the freedom department.”

    Matt, iTunes songs have been DRM free since January. All 10 million of them.

  • Sean

    @Matt B……

    “My problem with Apple and some of the big names is DRM and a monopolistic mentality. I will never download a protected song. iTunes is horrendous in the freedom department.”

    Matt, iTunes songs have been DRM free since January. All 10 million of them.

  • humann

    this is your 3rd zoon you say? lolz.

    bang the drum and wave that penance.

  • humann

    this is your 3rd zoon you say? lolz.

    bang the drum and wave that penance.

  • Charlie W

    Actually, Sony makes a rather brilliant MP3 player and even includes an excellent set of noise canceling headphones. that far outmatch both MSFT and APPL.
    Frankly, even the Zune HD is overloaded with features. Audiophiles want true uncompressed music delivered as purely and as distortion free as possible. I don’t think they need a game or a web browser to go a long with their favorite musician.
    But, since most of America’s youth suffer from ADD and have a lousy ear for sound, then overloaded players like the Zune, Archos, and iPod will easily get their business.
    Nice read though.

  • Charlie W

    Actually, Sony makes a rather brilliant MP3 player and even includes an excellent set of noise canceling headphones. that far outmatch both MSFT and APPL.
    Frankly, even the Zune HD is overloaded with features. Audiophiles want true uncompressed music delivered as purely and as distortion free as possible. I don’t think they need a game or a web browser to go a long with their favorite musician.
    But, since most of America’s youth suffer from ADD and have a lousy ear for sound, then overloaded players like the Zune, Archos, and iPod will easily get their business.
    Nice read though.

  • Viswakarma

    If you like one-trick-pony, then Zune is for you!!!

  • Viswakarma

    If you like one-trick-pony, then Zune is for you!!!

  • David Smyth

    Your two lines “My favorite argument from the Apple Fanboys is that they are cheaper in the long run.” and “I’ve had my hard drive crash several times.” pretty much sums it all up.

    My family has 5 Macs and none of us has had a hard drive crash in over 10 years. None of us has had a system freeze in over 6 years and of course none of us has had a virus or needed the inconvenience or expense of anti-virus software ever. I guess this is an excellent example of “You get what you pay for”.

  • David Smyth

    Your two lines “My favorite argument from the Apple Fanboys is that they are cheaper in the long run.” and “I’ve had my hard drive crash several times.” pretty much sums it all up.

    My family has 5 Macs and none of us has had a hard drive crash in over 10 years. None of us has had a system freeze in over 6 years and of course none of us has had a virus or needed the inconvenience or expense of anti-virus software ever. I guess this is an excellent example of “You get what you pay for”.

  • http://technicalconclusions.wordpress.com Steve

    I’ll just play devils advocate here to provide you with a few valid rebuttals to your post.

    1. “Apple seems to forget the initial purpose of the technology.”

    Yes, MMS was an obvious omission, but let’s be honest here. It’s a throwback technology for the sole benefit of those not using smart phones and who do not have access to e-mail. Otherwise, Apple, like others have pretty much nailed the “phone” feature. That’s not the distinguishing feature for any market leader in the smart phone business. Apple rightfully made a name for itself in media capabilities, including the iPod and a killer web browser (as compared to others at the time).

    2. “The price points are obnoxious.”

    Perhaps, but they are also not quite the rip-off Microsoft would have everyone believe. When comparing “Apples to Apples” they are actually fairly competitive at most price points. Further, you can’t maintain an image of being a premium brand when you’re selling $300 PCs.

    3. “In some ways, their business model is outdated.”

    I think you need to do the math here before suggesting subscription models are better. They are not. The masses do not want to pay a “flat rate” to experience music. There are plenty of ways to discover new music without paying a subscription – and some are even legal ;-) In all seriousness though, this business model has not proven successful for Apple’s competitors to date. Likewise, your declaration is a bit premature if not just plain incorrect.

    4. “This is such a beautiful, worthwhile device that is lost on so many techie nerds that are writing reviews condemning Microsoft for what they consider to be a “too little, too late” product.”

    I hate to state the obvious, but why do you think so many reviewers are saying this? Maybe because it’s true? Most agree that the Zune HD is finally a nice portable music player coming from Microsoft. Hurray, the third time is the charm. The problem is, as nice as it is, it’s not better then the competition, nor does it undercut Apple’s pricing. That’s not a recipe for success. HD Radio isn’t a selling point. If you haven’t noticed, the radio industry in general is having major problems. So, at this point, we’re looking at a product that is approaching the “coolness” of the iPod Touch, but without the major feature – the app store. Those who are just interested in music, don’t need a touch interface device. That’s what the original Zune was for. That’s what the iPod Nano is for or the iPod Classic, etc.

    By contrast, Apple makes full use of the touch interface with the ton of applications available that make it so much more than just a music player.

    Further, nobody is excited about the Zune HD because it’s essentially a me too product (albeit a nice one) that’s not better than the competition and that’s entering a now declining market. To that, Mary Jo Foley has commented that Microsoft will be getting out of the music player business after another round or so of Zunes.

    http://blogs.zdnet.com/microsoft/?p=4011

    Instead, even Microsoft will be trying to add the “Zune experience” into phones. But the problem for Microsoft is who’s phones? Microsoft has dropped from 14% to 9% in market share. Palm is dumping Windows mobile devices. Motorola is dumping them for Android and even HTC, Microsoft’s main vendor is scaling back in favor of Android.

    In summary, there isn’t much to get excited about in terms of future prospects for the Zune experience.

  • http://technicalconclusions.wordpress.com/ Steve

    I’ll just play devils advocate here to provide you with a few valid rebuttals to your post.

    1. “Apple seems to forget the initial purpose of the technology.”

    Yes, MMS was an obvious omission, but let’s be honest here. It’s a throwback technology for the sole benefit of those not using smart phones and who do not have access to e-mail. Otherwise, Apple, like others have pretty much nailed the “phone” feature. That’s not the distinguishing feature for any market leader in the smart phone business. Apple rightfully made a name for itself in media capabilities, including the iPod and a killer web browser (as compared to others at the time).

    2. “The price points are obnoxious.”

    Perhaps, but they are also not quite the rip-off Microsoft would have everyone believe. When comparing “Apples to Apples” they are actually fairly competitive at most price points. Further, you can’t maintain an image of being a premium brand when you’re selling $300 PCs.

    3. “In some ways, their business model is outdated.”

    I think you need to do the math here before suggesting subscription models are better. They are not. The masses do not want to pay a “flat rate” to experience music. There are plenty of ways to discover new music without paying a subscription – and some are even legal ;-) In all seriousness though, this business model has not proven successful for Apple’s competitors to date. Likewise, your declaration is a bit premature if not just plain incorrect.

    4. “This is such a beautiful, worthwhile device that is lost on so many techie nerds that are writing reviews condemning Microsoft for what they consider to be a “too little, too late” product.”

    I hate to state the obvious, but why do you think so many reviewers are saying this? Maybe because it’s true? Most agree that the Zune HD is finally a nice portable music player coming from Microsoft. Hurray, the third time is the charm. The problem is, as nice as it is, it’s not better then the competition, nor does it undercut Apple’s pricing. That’s not a recipe for success. HD Radio isn’t a selling point. If you haven’t noticed, the radio industry in general is having major problems. So, at this point, we’re looking at a product that is approaching the “coolness” of the iPod Touch, but without the major feature – the app store. Those who are just interested in music, don’t need a touch interface device. That’s what the original Zune was for. That’s what the iPod Nano is for or the iPod Classic, etc.

    By contrast, Apple makes full use of the touch interface with the ton of applications available that make it so much more than just a music player.

    Further, nobody is excited about the Zune HD because it’s essentially a me too product (albeit a nice one) that’s not better than the competition and that’s entering a now declining market. To that, Mary Jo Foley has commented that Microsoft will be getting out of the music player business after another round or so of Zunes.

    http://blogs.zdnet.com/microsoft/?p=4011

    Instead, even Microsoft will be trying to add the “Zune experience” into phones. But the problem for Microsoft is who’s phones? Microsoft has dropped from 14% to 9% in market share. Palm is dumping Windows mobile devices. Motorola is dumping them for Android and even HTC, Microsoft’s main vendor is scaling back in favor of Android.

    In summary, there isn’t much to get excited about in terms of future prospects for the Zune experience.

About
Tom is an entrepreneur and freelance writer, working out of his apartment full-time, or wherever he feels like taking his laptop. He doesn't take long European vacations or blogs on the beach. He's an Average Joe that took control of his life. He wants you to do the same.
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