Or: Will Google's Open Model Overcome Apple's Closed Model?
There is an argument I’m hearing a lot lately that Apple is repeating the mistakes it made in the PC era again today with the iPhone. The argument – which I’ve heard from financial analysts, journalists, and my friend Marc on our walk home from synagogue – goes something like this:
In 1984 Apple ran an ad during the Super Bowl promising that 1984 would not be like [the totalitarian world of George Orwell’s novel] “1984.” Apple then launched the Macintosh, which had an enormous lead over the rest of the PC industry thanks to its graphical user interface. But Steve Jobs decided to keep the Mac a completely closed system while Bill Gates over at Microsoft invited all comers to build apps for MS-DOS. Thanks to the open nature of the PC platform, clone makers from Compaq to Gateway to Dell built more powerful hardware than Apple, Microsoft eventually built its own graphical user interface, and the Mac was relegated to 2% market share.