Squandrous

It’s a good time to be an Apple fan

A few quick thoughts before I head out to the airport for my work trip to Europe. As you are already aware, Apple’s market capitalization now exceeds that of Intel and IBM, and the Q4 2007 financial statement is more than positive when it comes to the company’s economic status.

I have already read several reports on how Apple got to this point, and why this is a good/bad thing for Apple, and all that usual hubbub, but the most insightful post I’ve read on the topic has been from John Gruber, who provides a quick breakdown of how Apple was able to get to this point from its previous position in the computer industry. He credits several developments, including the coming of age of the world wide web, Apple’s switch to Intel CPUs, the slow pace of Windows development, the retail store successes, and the nerd-fan-base phenomenon.

His most insightful point, I believe, and one that I see in practice every day on university and college campuses everywhere, is about the youth market:

“Young people love Apple. Arguably, this is another aspect of the iPod halo effect. Strong back-to-school sales account for an enormous chunk of Apple’s record-breaking quarter. And consider the long-term effect: hook students on the Mac today — and keep them happy — and Apple has gained new Mac customers for life.”

Gruber’s entire post is worth reading: there are very few people I know that understand Apple’s history and modus operandi better than him, and this post is one of his best.