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'Apple is in big trouble,' tech expert holding an iPhone says

Posted: , by Victor H.

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'Apple is in big trouble,' tech expert holding an iPhone says
Apple might be the second-largest company in the world with a market cap of over $300 billion, but if you take the words of NBC's Today Show Gear and Technology editor, Paul Hochman, it's in serious trouble. 

Hochman, holding an iPhone, spoke at the Forward with Ford Futuring and Trends Conference:

"Apple’s in big trouble. They’re sitting on piles of cash, but they are sitting on a closed system. In biology, in history, a closed system never survives."

At the same time, he lavished praise on Ford for picking an open system, one which allows an external device like both an iOS or Android one for communication and even apps. Conversely, General Motors which opted for a closed system doesn't allow upgrade of the hardware locking you down into using the same device even when it fades out of relevance after a couple of years. This argument certainly holds ground as the lifespan of a car is usually much longer than the one of a phone, but do you agree with Hochman's comments on Apple? Feel free to voice your opinion in the comments below.

source: Pocket-lint

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posted on 27 Jun 2011, 06:47 8

1. fayez (unregistered)


no so sure what he is talking about. May be he should come up with more explanation. apple is making lots of $$$ from closed system.

posted on 27 Jun 2011, 11:16 5

29. The_Miz (Posts: 1496; Member since: 06 Apr 2011)


Probably just another Android fan rambling on because iOS is successful while Android will always be second best lol.

posted on 27 Jun 2011, 18:22 6

48. cheetah2k (Posts: 1713; Member since: 16 Jan 2011)


Its all about Nomenclature.

Take RIM for example. The Blackberry was the beez kneez for such a long time, and in the last 5 years we've seen little or no changes in both design and OS. The Blackberry OS is a closed system.

Now take Apple. The iPhone is the "new" beez kneez on the block and has been for the last 3-4 years. Over this time we've seen little or no change in both design and OS. Apples' OS is a closed system.

So... if you use RIM as an example (albeit a bad one) of what happens in industry where the company chooses to make little or no changes in design and OS, one could assume that if Apple doesn't diversify/change/innovate soon, there is a "possibility" that Apple might end up in dire straits like RIM.

To be honest, there is truth in this scenario. Many people I know (including myself) who started out using the iPhone in 2007, have moved over to Android simply because Android handsets have offered a different experience, the latest and greatest hardware, and no iTunes.

Apple will have to bring something completely different in the market if they want to stay in the game. Simply pushing the same o same o and expecting end users to just upgrade to essentially the same thing at the end of 2 year contracts is a very poor economic model to be running a company by, into the future.

posted on 27 Jun 2011, 06:49 7

2. Eingild (Posts: 203; Member since: 19 Apr 2011)


In Steve Job's world, Biology sh*ts do not apply. He's saying that Apple might not survive with its closed ecosystem, but the numbers tell otherwise.

posted on 27 Jun 2011, 06:50 8

3. baldilocks (Posts: 758; Member since: 14 Dec 2008)


They have been surviving in one form or another since day one. Me thinks this guy has NO idea what he is talking about.

posted on 27 Jun 2011, 07:14 5

4. r2212xx (Posts: 41; Member since: 18 Apr 2011)


But Apple is still innovative and inventive. Till they are able to churn out ground-breaking and trend-setting products like iPhone and iPad, they need not worry about the closed system.

posted on 27 Jun 2011, 07:15 5

5. VIk (unregistered)


Eventhough Apple does have a closed system and ideally they should be affected by it in the near future, they probably wont, because although their products restrict people they have a knack for creating desire! . . . . their products and the company itself is marketed so well that even with the restrictions people still dont mind buying apple products because its cool to have. "Most people seem to buy into the hype that Apple creates."

posted on 27 Jun 2011, 07:15 14

6. SuperAndroidEvo (Posts: 4888; Member since: 15 Apr 2011)


He is 100% right. Android in less time than Apple already overtook them in actual phones on the market worldwide. Android’s quick rise to dominance is due to its "openness". People like this freedom & Android looks to gain even more of a lead due to its "openness". If you look at history closed systems never work & this IS going to happen again. At one point Apple was the only kid on the block when it came to touch screen smart phones, but now the juggernaut Android is claiming what was once Apple's #1 status. Apple historically has never done well in the PC world because of its closed mentality. In the business world you only see Windows PC’s, Apple share is so small that it doesn’t even put a blemish on Windows world wide dominance. NBC's Today Show Gear and Technology editor, Paul Hochman, is only using logic & history to make that statement. It just makes sense.

posted on 27 Jun 2011, 09:25

22. elandrumiii (Posts: 109; Member since: 20 Mar 2010)


One phone one maker against what almost every phone maker in the world dropping an android phone. I am no iphone fan either. I dropped blackberry for android. Samsung, LG, Motorola, HTC, etc. Then Apple and the iPhone.

posted on 27 Jun 2011, 09:55 4

26. SuperAndroidEvo (Posts: 4888; Member since: 15 Apr 2011)


We are talking about the OS, not phone sales. Samsung is about to become the #1 phone maker in the world. HTC is in the top 4 phone makers in the world. He is talking about OS being the downfall of Apple. Naturally when Apple cemented it's #1 spot there was no other competition in the touch screen smart phone world. When Android came out it's "openness" was appealing thus their #1 world ranking. People could have bought an Apple iPhone, but they didn't. People chose Android. People are still choosing Android.

posted on 27 Jun 2011, 11:04 2

28. Tre-Nitty (Posts: 470; Member since: 16 Nov 2010)


You are such a homer. Dude how much is Google paying you to stroke them like that. It's 1 thing to not like apple but your borderline fanatic. Btw most people don't root nor customize their android phones. Don't believe me, Google it.

posted on 27 Jun 2011, 13:41 3

37. SuperAndroidEvo (Posts: 4888; Member since: 15 Apr 2011)


Dude what are you talking about? You make no sense! lol No one is talking about rooting anything! Homer? What is this 1998? lol

posted on 27 Jun 2011, 14:40 1

40. CRICKETownz (Posts: 980; Member since: 24 Oct 2009)


For Google to overtake Apple this was their strategy all along to partner with pretty much every phone manufacturer out there. What separates Apple from the other guys out there is that they both create software and that hardware to go with it. Others have tried that route (i.e. Samsung Bada) but have been less successful at it. Android is everywhere...so for them to overtake Apple at a faster rate is it really that surprising? If Android were restricted to only one phone manufacturer that rate would probably decrease greatly, but aggressively saturating the market with it's software is what has propelled them. Yet & still Apple continues to be a heavy contender, while just about taking Blackberry's place in the business world. This is an area where Android is very "iffy". Every OS has it's weaknesses. For iOS it's lack of Flash or high level of customization (depending on who you are...me I could less about customization), for Android it's battery life & software glitchiness (resets, powercycles etc.).

posted on 27 Jun 2011, 15:46 2

44. stealthd (unregistered)


Androids success actually has very little to do with it's openness, it's really more due to it simply being everywhere and at every price point. Do you really think the average Joe who walks into a non-Verizon store and asks "do you guys have Droid phones?" really cares about his phone being open?



The winning platform is the one with the best software ecosystem, and that's obviously still iOS right now. The Android Market is devoid of quality premium content, partially due to piracy and partially due to the average Joe I described above who doesn't give a crap about apps, he just wanted a free phone.



When premium services like Netflix and Hulu start coming to Android first, then they've officially dethroned Apple. Right now the Android Market is full of sound boards and knockoff apps and that hardly makes it a better platform.

posted on 27 Jun 2011, 18:47

50. Da Beast (unregistered)


The point is that if iOS was more open & on more than just Apple products they wouild probably be #1 just on marketing alone because no one can deny that Apple's marketing strategy is that good. Just imagine Android openess with Apple's marketing........that would be pure heaven!

posted on 28 Jun 2011, 16:46 1

61. choupino (Posts: 69; Member since: 28 May 2011)


STEALTHD: Dude get your facts straight before you start posting Bullsh*t onine.

First of all, NETFLIX & HULU ARE BOTH AVAILABLE IN THE ANDROID MARKET. The "Android Market Is Devoid Of Premium Content"??? What kind of Crack do you smoke???

I own an iPhone 4 & an Android device(Atrix 4G) and can easily state that my Android device has much more options for me to use and I can do things with it that IOS can't help me with.

THINK BEFORE YOU SPREAD BULLSH*T "STEALTHD"... I GUESS YOUR KNOWLEDGE IS AS SLEALTHY AS YOUR NAME... CAN'T FIND IT... LOL.

posted on 28 Jun 2011, 16:58 1

62. choupino (Posts: 69; Member since: 28 May 2011)


STEALTHD: I guess, according to your standards, that Android has now officially "DETHRONED APPLE" now huh??? Dud, you sound like this is 2008... Get some relevant true facts and base your opinion on something real...

I'm not an angry guy... It's just that there are people that come to this site to see information and hear our opinions. Unfortunately some of them will view your baseless entry and walk away thinking that you are right.

JUST A TINY BIT OF RESEARCH WOULD'VE PREVENTED YOUR ERROR. TRY IT BUDDY.

STOP THE MADNESS... :)

posted on 27 Jun 2011, 07:16 3

7. neutral (unregistered)


I think Apple can survive this long because Apple is providing one stop solution for a lot of things. If their closed system works because they provide almost all things you probably ever want via iTunes. Apple surely has a lot of flaws but its focus on providing simple and integrated things for all kinds of media via iTunes ecosystem is their ace card. That's what I think.

posted on 27 Jun 2011, 07:20 6

8. ivanprskalo (Posts: 123; Member since: 09 Dec 2010)


Seriously people, how no one see that Apple is trying monopolize the market and are doing it in tiny steps.
That behavior is ugly and just mean!!
Let others live and breathe.
Not everyone wants buy super-high-extreme-expensive iStuff (which are, to be honest, built very well) but essentially, are quite like others in the market and you can do pretty much the same things with them, more or less.
So, to summarize, Apple:
- high prices,
- highly restricted OS-es,
- quality of build,
- neat design to some point (but not so beautiful, to me it is ugly, but that's whole other story, I'm trying to be objective here),
- fascistic market behavior...
All in all, not enough to convince people with more than two brain cells in the head to switch to them and buy their iCrap...
Cheers people and die Apple!

posted on 27 Jun 2011, 07:52 6

9. Darren @ (unregistered)


While I do not believe in a closed system Apple does produce the most stable OS's and best built hardware. They will do fine and continue to grow. When Android can have 2 models in 2 colors on two carriers and outsell the Iphone then I will believe in Android again. I want android to beat apples ass SO BAD but even with 100+ devices in the US Market they are barely beating Apple. The problem is TOO MANY devices, too many plasticy cheap looking devices, updates come out at all different times. OS fragmentation is an issue. This is coming from someone who has had 6 android smartphones starting with the Original Droid. I gave up after way too many force closes. Yes I want a beautiful, solid built piece of hardware on a platform that gets regular updates across the board. The Android mentality is to throw a 100+ half baked devices out constantly and clean up everything else later. Apple is no saint in products that had issues at launch but from where i am sitting my Verizon Iphone 32GB is a hell of a lot better and more stable then my old Droid X ever hoped to be. Do I wish my iphone had a SD card, LTE and Flash? HELL yes but I will take my "Oh thats cool device" that is stable over something that is not.

posted on 27 Jun 2011, 13:10 2

35. agent7 (Posts: 19; Member since: 20 Apr 2011)


I have had both an iPhone and multiple Android devices. I would never go back to an iPhone. If it were handed to me, I would simply sell it. I want my phone to be MY PHONE... NOT APPLE'S. If I want to use it as-is, then fine. If I want to root and open up even more possibilities, great. It should be my choice. If the iPhone is for you, then that is your decision 100%. More power to ya! My phone works just the way I want it to, and that is what makes me happy.

posted on 27 Jun 2011, 18:33

49. sgogeta4 (Posts: 394; Member since: 02 Feb 2011)


You do know that Apple does not actually manufacturer any of its own hardware right..

posted on 27 Jun 2011, 08:19 4

14. Sniggly (Posts: 7305; Member since: 05 Dec 2009)


Taco, did you... did you just post something reasonable and intelligent?

...

...

Sorry, had to come back from the dead. I died of shock. :P

posted on 27 Jun 2011, 08:00 6

11. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)


Only time will tell. Their "closed" model is very successful so far with cell phones, iPods and iPads. At the same time android has picked up a lot of steam, but it's not translating for big profits for the actual manufacturers. It did hurt Apple in the pc market though.

posted on 27 Jun 2011, 09:11 2

17. Eingild (Posts: 203; Member since: 19 Apr 2011)


Oh man, taco could not have said it better. This guy is finally making sense. Happy for you bro. ;)

posted on 27 Jun 2011, 09:51 3

24. remixfa (Posts: 14597; Member since: 19 Dec 2008)


that was almost intelligent, right up until the manufacturers part. Manufacturers like HTC and Samsung are posting record sales and profits off of android devices, and it saved motorola's mobile division.

Im going to assume you mean "app developers" not "manufacturers".

Just dont tell that to Rovio who is swimming in android app cash.. lol.

posted on 27 Jun 2011, 12:41 1

33. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)


Apple's profits are so much higher than any manufacturer selling android that it's not even competitive.

posted on 27 Jun 2011, 16:46 1

47. remixfa (Posts: 14597; Member since: 19 Dec 2008)


well.DEEEEER Apple pays no liscencing fees.. apple makes money off of every app sold.. apple makes money off itunes, macbooks, software, accessories, iphones, ipads, ipods, and whatever else..

HTC makes money off phone hardware sales.


I wonder who will make more.. lol.

Now the trick is, HTC (just as an example, insert any phone manufacturer) DOESNT have to pay huge liscencing fees to google for the use of android. The OS is free to us. Yes they pay a little bit to add in the google apps, but its way less than they pay to MS to run WP7 on a phone. And since Android is open they can add little apps like the movie store and make something off that.

The question is, who makes more off of purely MOBILE.. MS, Google, or Apple. The answers may be suprising (no, i dont know which for a fact.. lol).
Just remember, both google and MS make money off of Apple, but Apple makes money off of neither.

posted on 27 Jun 2011, 19:29

53. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)


So Apples business model is better than htc because they make money off everything. Also they get money for licensing fees as well and with eir new patents they may be getting a lot more soon.

posted on 27 Jun 2011, 08:16 1

12. asdf (unregistered)


i'm an android user but speaking with no bias -- apple is only a semi closed system. while there's no arguing the hardware side of things, what apple did recognize and eventually revolutionized was the software side of things (and no, i'm not talking about iOS). i'm talking about the App Store. they were the first to incorporate this into their phones and that's the reason why the iphone took off and never really looked back. the ability for developers to make money what was encouraged more creativity and more apps. while apple isn't the most creative, have to give Jobs credit for letting everyone else do the work for him. at least he has decent standards in quality.

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