Apple and Intel

The news is of course everywhere. But what does it all mean. Here are some random thoughts:

1. Steve Jobs is a great decision maker. Despite the obvious risks and short term concerns (stock price, consumer confusion and so on) he had made a call to shift Apple up a gear by embracing a chip roadmap that can serve for a decade or more. Two years from now the stock holders will be cheering. Five years from now he will be lionised as a saviour.
2. Apple had no choice. IBM just isn’t able to deliver.
3. CPU flavor is increasingly unimportant. The fact that an OS can run on top of many different architectures (look at Linux) is now normal. An OS vendor is not locked in to any particular CPU vendor.
4. Even OS’s are fairly unimportant. Most of the software we all use runs on top of any CPU and any OS.
5. The future is about content and the ability of a company to serve its customers. These make hardware and even OS’s a commodity. Want margins, get into the software as service business real fast (like iTunes for example). These may also drive hardware sales. Without them there will be no sales.

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