Saturday, May 15, 2010

Is Apple Really In Trouble?

Having successfully failed to woo Apple, Adobe filed complaints against Apple to the US Antitrust Enforcers, saying Apple is stifling competition by shunning all Flash-based content from the iPhone and the iPad.

First things first, is Adobe justified in its allegation? Let me give you some perspective, before you jump to any conclusion.

Flash is Adobe’s proprietary software that currently is being used to run more than 90 percent of online graphics, animations, and videos, especially content for displaying online advertisements. And, Apple doesn’t support Flash on its products, disallowing Adobe a highly-desired, much-awaited entry into the Apple Value Chain.

But, why does Adobe want to enter into Apple’s “territory.” There are two obvious reasons for desiring so:

1) Apple’s customers, in general, are higher-spending smartphones-users. Getting their eyeballs for advertisements are highly desirable, as the chances increase manifold that those customers will buy things, when they are exposed to “relevantly-pitched” advertisements.

2) Apple may break Adobe’s hegemony on online content that generates online advertisement revenues, and may push HTML5 – an open-source standard for web-based graphics, animation and videos – as the industry standard for online advertisements. If that happens, Adobe’s value will tumble, because Adobe makes money from charging advertisers, designers, and developers for using its proprietary tools, such as Photoshop and Illustrator, for creating Flash-based graphics, animation, and videos.

Let me give you some more perspective. Why should Apple bow to Adobe? If the ground has to be leveled for all kinds of stakeholders, then why shouldn’t it be leveled by making an open-source standard, such as HTML5, as the industry standard for online graphics, animations, and videos? Doesn’t it sound more logical? Why should “the power” shift from one company to another? The power to control online revenues should be dissipated to everyone on this earth! And, that is achievable only by making HTML5, or something still better, the industry standard for creating content that generates online revenues.

Apple has vehemently been supporting HTML5!


Now, let’s get back to the original question of whether Adobe is justified in claiming that Apple is killing competition by not allowing Flash-based content on the iPhone and the iPad. What do you think? I think, “Not a tad!”

If you disagree with me, please feel free to rip me apart – there is a button for comments right down here! I look forward to hearing your rationale too!