Is Apple in trouble? – Puppies, Flowers, Rainbows and Kittens

I was reading this great post from Scoble: Why doesnâ€™t Microsoft get the love? Â« Scobleizer which was spot-on, but for some reason it got me thinking about Apple instead of Microsoft.

I think Apple is in serious trouble.

The Amazon digital download store is much better than the iTunes store. Not the design or that dumb downloader, but the fact that they are selling high bitrate MP3s for the same price or less than iTunes sells the DRM’d files. Apple might be paying the price for being the ones who made legal downloading of music a reality. Losing the store isn’t a huge issue for Apple’s profit. The store exists to sell iPods, Apple doesn’t make much money on it. However, once you don’t need the store, you don’t need iTunes or an iPod. Apple’s innovation on the iPods will keep this business strong for them, but without the whole ecosystem, they become vulnerable.
The desktop line is stagnating. I’m assuming that there is a reason that Apple hasn’t really bumped their desktop line in a while and I’m also assuming that we will get news soon. However, the GPUs on their highest-end machines are years old, and due to Apple’s locked-in nature, it isn’t a user-serviceable part. Letting this go so long is a problem. I and at least one friend of mine are waiting on new desktops before we upgrade our PPC-based machines. The GPUs in the laptops are better than what we have at the moment.
The iPhone debacle: I think Apple is handling the iPhone all wrong. The phone is a triumph of technology, but even $400 for a phone is a lot of money for the average consumer. The phone doesn’t have enough features or speed on the network to replace serious smart phone competitors and it is still lacking some fundamental features that free-phone-with-subscription-phones lack like MMS and MP3 ring tones.

I don’t think Apple is dead or anything like that. I’m still an Apple fan-boy (as a user, not as a developer), but I think these signs are troubling and Apple can still snatch defeat from the jaws of victory.

What do you think?

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