A year ago I speculated that Apple would start to shift its emphasis away from the computer business and into consumer electronics. (Click here and scroll down to May 17, 2003.)
Apple announced this week that it will split its product development into two parts, separating the people who develop iPod-related products from those who work on the company’s flailing Macintosh computers. For the first time, Apple sold more iPods than Macintosh computers last quarter.
Apple’s Chief Software Technical Officer Avie Tevanian revealed last week that the company can’t afford to keep up its Mac OS X development pace and will scale back those efforts.
The battle against Microsoft is unwinnable. Watch for more signs that Apple realizes its long-term future is in consumer electronics, not computers.