PERSONAL TECHNOLOGY
By WALTER S. MOSSBERG   
In Our Post-PC Era, Apple's Device Model Beats the PC Way
May 11, 2006; Page B1

For many years, there have been two models of how to make computers
and other digital devices. One is the component model, championed by
Microsoft. The other is the end-to-end model, championed by Apple.

In the component model, many companies make hardware and software that
run on a standard platform, creating inexpensive commodity devices
that don't always work perfectly together, but get the job done. In
the end-to-end model, one company designs both the hardware and
software, which work smoothly together, but the products cost more and
limit choice.

In the first war between these models, the war for dominance of the
personal-computer market, Microsoft's approach won decisively. Aided
by efficient assemblers like Dell, and by corporate IT departments
employed to integrate the components, Microsoft's component-based
Windows platform crushed Apple's end-to-end Macintosh platform.

But in the post-PC era we're in today, where the focus is on things
like music players, game consoles and cellphones, the end-to-end model
is the early winner. Tightly linking hardware, software and Web
services propelled Apple to a huge success with its iPod. Microsoft,
meanwhile, has struggled to make its component model work on these
devices and, in a telling sign, is using the Apple end-to-end model
itself in its Xbox game-console business. Now, Apple is working on
other projects built on the same end-to-end model as the iPod: a
media-playing cellphone and a home-media hub.

The jury is still out on whether the end-to-end model will prevail in
the long term. Many at Microsoft, and some outside analysts as well,
believe the new devices will eventually succumb to the component
model, and that Apple's success with the iPod will fade, just as its
early dominance of the PC market did. Apple officials say history
won't repeat itself if the company continues to make great products
and avoid the business blunders committed by its past management.

I think the end-to-end model can prevail this time, both for Apple and
other companies. Consumers want choice and low prices. But they also
crave the kind of simplicity and integration that the end-to-end model
delivers best.

Sure, you can get more variety in music players and in online music
services if you opt for the Microsoft-based music instead of the iPod
system. But the iPod, Apple's iTunes software, and the iTunes Music
Store work so well together that users can just relax and enjoy the
music. By contrast, the hodgepodge of players, software and online
music stores on the Microsoft side frequently have trouble
synchronizing between computers and players. Apple sells as many or
more songs than the many stores that use Microsoft software.

Critics attack the iPod and iTunes as "closed" and "proprietary,"
because the songs Apple sells at its iTunes Music Store play only on
iPods, and iPods can't play songs purchased from other music stores.
But both the iPod and iTunes handle the two most common open audio
formats, MP3 and WAV, and the most common open video format, MP4. They
work well even if you never buy a song from Apple. And iTunes and the
iPod work on Windows computers, not just Macs. So how is that closed?

Even the Mac isn't as closed as its critics charge. It's still
designed to work with Apple's own operating system and software. But
it can handle all the common files Windows uses, can network with
Windows machines, and can use all of the common Windows printers,
scanners, keyboards and mice. The Mac gives you the same access to the
Internet as Windows. Heck, the newest Macs can even run Windows
itself.

You do get a choice of more software with Windows. And that's great
for hard-core gamers and users of corporate, or niche, software. But
for mainstream users doing typical tasks, the Windows choice advantage
is illusory. Mac users can choose among thousands of third-party
programs, including multiple Web browsers, word processors and email
programs. They can run Mac versions of popular software like Microsoft
Office and the Firefox browser. How much more choice do you need?

Microsoft is hedging its bets. It has, in effect, created a little
Apple inside Microsoft with the Xbox group. The Xbox team shunned
Windows and wrote its own operating system and user interface, and
built its own hardware. (The new Xbox was even developed using
Macintosh computers.)

Some Microsoft officials dismiss this anomaly by claiming that the
game-console business is a special case. But now, Microsoft has
assigned the Xbox team to create a portable music player it hopes can
knock off the iPod. Why? Because the company is frustrated that the
component model, which separates hardware and software, has failed in
the music market. It's looking for more integration.

Still, the end-to-end model isn't a lock. If Apple can't keep churning
out cool products at reasonable prices, it could crash and burn.
Unlike Microsoft, it doesn't have much help from other companies to
succeed. But the iPod experience has shown that the PC model may not
be best for all digital devices.

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