Robi Ganguly’s Big Ideas

In the past few weeks we’ve seen something new from Steve Jobs: an interest in communicating with “the commoners” using digital communications channels like email and blogging. First, it was the email he sent in reply to a developer about the iPhone OS 4.0 release and then last week it was a letter on the corporate website, talking about Flash. Now, I haven’t looked into this extensively, but it seems to me that he’s taking a bit more of an open stance towards communicating with the world at large about Apple decision-making.

Importantly, the letter on the Adobe issue was indicative of his interest in communicating with developers about what’s going on behind the scenes. The Jobs who lost the PC developer war to Microsoft refused to do this. It looks like he might have learned a few things. I highly recommend reading the entire letter from Jobs, but in particular, this paragraph is highly informative. For those of you looking to understand the strategy Apple’s employing and how they think about their business, here it is, quite concisely (emphasis on the devices piece is mine):

Our motivation is simple – we want to provide the most advanced and innovative platform to our developers, and we want them to stand directly on the shoulders of this platform and create the best apps the world has ever seen. We want to continually enhance the platform so developers can create even more amazing, powerful, fun and useful applications. Everyone wins – we sell more devices because we have the best apps, developers reach a wider and wider audience and customer base, and users are continually delighted by the best and broadest selection of apps on any platform.

And just for a bit of fun, if I was on the team at Apple really focused on the developer platform and its adoption, this might be my theme song right about now:

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Windows support.

That’s right, they should support Windows – for developers.

Update: While Apple has yet to offer Xcode on Windows, there have been lots of developments to really accelerate the process of application development. From meta app building technologies to incredibly sophisticated development studios, the game has changed and some of my assumptions below have been proven wrong. However, that’s why I’ve started building an iOS feedback system for app developers, with solutions on Mac OS X as well. The world is sprinting towards infinite consumer software and we’re helping developers stand out in the sea of apps .

What Apple is doing with its App Store and the iPhone OS revisions is creating the market for developers who create and sell mobile apps… on Apple’s platform of course. Learning from the PC battles, they’ve quite obviously focused on the idea that more apps = more ways to meet consumer needs and therefore, it should result in more revenue for Apple from their primary customers: Consumers.

Given that dynamic, it makes very little sense that only those with Apple machines (and yes, some folks on Unix/Linux..) can develop iPhone applications. Since the predominant operating system is Windows, doesn’t it make sense that you should support all of the developers who are on Windows? (I know, I know, since when does Apple make sense to anyone but themselves?)

In all of the blogs and reporting covering the lead-up to today’s announcement, I’ve been pretty shocked that this issue hasn’t been turned into a larger piece of the conversation. Apple’s addressable developer market is MUCH smaller than it could be. Ultimately, the other players in the market are all going to be competing for developers alongside Apple.  Although Apple’s device and platform might be much better, if they’re not supporting Windows developers, they won’t be tapping into the largest pool of developers.

What’s really interesting about this glaring lack of Windows support is how easily we can draw parallels between this situation and previous Apple products and their associated growth. If we just pull up the unit sales charts for the iPod and for Mac computers over the past several years we can point to inflection points that coincided with providing support for Windows.

Here, take a look at the iPod sales chart:

On October 16, 2003, Apple announced the release of iTunes for Windows, which meant that Windows PC owners could now purchase and manage their iPods (http://www.apple.com/pr/library/2003/oct/16itms.html).  I’ve highlighted that quarter above and while I won’t say it was the ONLY thing that led to a change in the iPod’s sales trajectory, it certainly would appear to have coincided with a new sales trend. Up until that point in time, the iPod was really just a blip on the MP3 market radar.

Next, let’s take a look at the sale of Mac Computers:

During the first week of April, 2006, Apple announced that it would release a piece of software it called “Bootcamp” on its Intel-powered computers. Bootcamp was meant to enable the use of Microsoft Windows on Macs, a pretty wild idea at the time. I decided to purchase some Apple stock, based on that announcement, hypothesizing that it would increase the addressable market for Apple computers and boost their sales. Taking a look at the absolute growth in units sold, that hypothesis has been proven out nicely ☺ (note, I no longer own that stock).

I want to be clear: I don’t think it’s fair to attribute either iPod or Mac sales growth solely to Windows-related accessibility. Instead, I’d like to suggest that being accessible via Windows is clearly beneficial and could prove to be transformative to Apple’s ultimate goal: iPhone and iPhone-related sales.

As an investor, an iPhone owner and someone who’s working on mobile app development, I look forward to the day when Apple looks at these realities and agrees with me .

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