Tech Broiler

Jason Perlow and Scott Raymond

Apple is abandoning the professional market

By | June 29, 2011, 6:30pm PDT

Summary: Apple appears to be abandoning the professional market in favor of the more lucrative consumer market. And that may actually be a good thing.

It was bound to happen sooner or later. The arguments, the recriminations, the breakups and reunions. After a long, stormy relationship, it looks like Apple is finally calling it quits with their professional customers.

Apple: It’s… it’s just not working out. I think it’s time we started seeing other people.
ProMarket: Was it something I said? I can change! Just tell me what you want!
Apple: It’s not you, it’s me. I just don’t love you anymore.

This has been a long time coming. Since the introduction of the iPod, Apple has been targeting the consumer market, rather than the high end professional market. The iPhone, iPod Touch, and iPad devices are all aimed at the consumer market. Business-class hardware such as the Xserve has been discontinued in order to focus on more consumer-oriented hardware.

The OS X operating system has been moving towards a convergence with the simpler iOS operating system; it has been surmised that OS X Lion will be the last iteration of that series of Mac operating systems. That doesn’t mean Apple will stop making an OS, but this will likely be the last familiar version before they head off in a new direction.

Recently, there was a great deal of dissatisfaction with the latest release of Final Cut Pro. What was originally considered a professional-quality application for video editing had been turned into a basic, toy-like application that no longer supported the capabilities that customers had come to depend upon.

(Side note to Joe Wilcox of Betanews: Don’t berate the customers for being dissatisfied. They have every right to be. Acting like a fanboi spouting that Apple can do no wrong and that they’re acting like spoiled children is a good way to alienate those faithful Apple users who are simply unhappy with the company’s business decisions that affect them and their work.)

It’s actually pretty obvious where Apple was going with this. The professional market is much smaller than the consumer market, and the price tag of Final Cut Pro 7 was thre times more than that of the new Final Cut Pro X. A lower-priced application aimed at a much larger market segment would result in increased profits for Apple. I may dislike Apple, but that’s just good business sense. To their credit, Apple did take the time to respond to some of the critics’ issues with the new version.

However, what they have done actually leaves the door open for companies like Adobe to come in and fill the gap left by the absence of a complete professionally-oriented video editing application for the Apple platform. What they should have done is what Adobe did with their Photoshop line: make a low-end application like Photoshop Elements aimed specifically at the consumer market, and continued to develop the full version of Final Cut Pro for the pro market.

I don’t presume to know what the decision process was behind this. Purely speculating, it’s quite possible that Apple simply decided it wasn’t worth the effort to support both market segments. As we’ve seen, Apple is moving further away from the professional market and focusing more on consumer products. Aiming at the pro market segment involves more man-hours of work for a lower return of the investment.

This isn’t necessarily bad for the professional market. It opens up opportunities for companies like Adobe to come in and fill the high-end gaps. It also provides renewed growth for companies like Microsoft to develop future generations of the Windows operating system geared towards high-end workstation hardware.

If you look at it that way, Apple leaving the professional market segment behind actually creates opportunity and growth capabilities for the vacuum they leave behind. That’s a new one on me–when was the last time you heard Apple doing something that wasn’t intended to crush competition? I’m not sure what things will look like a few years from now, but I like where it’s heading.

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Scott Raymond has been a technologist and system administrator for over 25 years.

Disclosure

Scott Raymond

I am the IT Manager for a high end audio and network systems integrator in northern Califronia. My wife works at Adobe Systems, Inc. Whenever I write an article that might involve Adobe or its products, I add a disclaimer at the top of the article to make sure she is not involved in any way. We have a small bit of stock with AT&T and no other major investments that would cause conflict.

Biography

Scott Raymond

Scott Raymond has been a technologist and system administrator for over 25 years. Starting as a hobbyist in his teens, Scott quickly learned that he could translate his passion and knowledge into a full-time career. He currently works as the IT Manager for a high end audio and network systems integrator in northern California. He has written technology articles for various publications in the past and began contributing to ZDnet as a guest blogger on Jason Perlow's Tech Broiler. Scott and Jason met in New York in the 1990s where they co-managed the New York City Palm Pilot Users' Group.

In his spare time, Scott is a trained chef and avid bicycling enthusiast, as well as a voracious reader of historical, science and horror fiction. He is a huge fan of pop culture, with a wide range of interest in TV shows, movies and games.

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Scott, Scott
nomorebs 29th Jun
Actually, you support the hypothesis that Apple can do no wrong.

The former Final Cut Pro (FCP) was considered the best program in its category for many people (if I'm not mistaken it had the larger market share as well). Yes, even better than Adobe software. I never used Final Cut Pro, but after playing with Adobe Premiere, I suspect why. That program's UI is (was in 2009) awful. I ended up using Sony Vegas 9 for x64. Now, with the all powerful and widespread FCP being hailed by almost everybody and with its winning market share, Apple was praised of course. Not to mention how profitable it seemed to be.

Now, it is praised by you because it got rid of that successful program?

Gee, praised if they develop the all powerful, successful and profitable FCP and praised it they ditch it. In other words, Apple can do no wrong.

Besides, your argument is flawed. Apple already had iMovie for the consumer market. So, your analysis looks very wrong to me.
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@nomorebs I think his argument was that Apple should make a logic express style version of final cut alongside imovie, just as they make logic pro, logic express, and garage band. Instead of dumbing down the interface, they should split it off into a cheaper, simpler program for more casual users.
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Mr. Dee Updated - 30th Jun
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Do you mean Final Cut Express?
RationalGuy 30th Jun
@nickswift498

Because that was Apple's "one step up" from iMovie. Now FCP is at a price point that serious consumer and prosumer editors can afford the suite.
@nickswift498 I am not sure why you got that idea. Please re read his post. What you say sounds to me as a different argument
@nickswift498 There was a Final Cut Express, for the same price as the current FCP X.
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@nomorebs

Oh the poor Windows professionals, having so much choice wink I prefer Sony Vegas to Adobe Premiere, but professionals can choose from a variety of powerful video production suites in Windows.

Never really liked FCP and running on a Mac was also a nono (I prefer cheaper and more powerful hardware). Glad to see my decision was proved right.
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@tonymcs@... It has nothing to do with Windows professionals having choice or not. I was questioning Scott's argument, that's all. I am personally not affected by Apple's decision about FCP, and I am not a video editing professional.

Not sure why brought the issue about Windows. Sounds off topic
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@nomorebs@...
tonymcs brought up the issue of windows because he doesn't know how to do anything else. He is well known for bashing anything not from Redmond and pointing out his own perception of why Windows is always the "better" choice. I think his handel should actually be tony mcse or some such.
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@tonymcs@...
So glad to some people think like i do, my issue with all apple VS PC products has never been if one was better or worse then the other, it has always just been VALUE!!
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Contributr
@nomorebs I think you need to re-read the article. I acknowledged that Apple angered their customers by rewriting FCP from the ground up and leaving a great deal of functionality out of the finished product. Personally I think what they did was reprehensible, but Apple is not known for doing what the customers want, only what Steve wants.

That being said, I can understand how it's justified from a purely business perspective, and I approve of it because it leaves a window open for another company to fill the gap left by the absence of a high-end version of FCP.

You are correct that Apple also has iMovie. Which kind of begs the question: since iMovie already exists, what does the new FCPX provide that can't be accomplished with iMovie? Why would anyone bother with FCPX if they needed more functionality than it provides, or if iMovie provided all of their needs?
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"... only what Steve wants"
RationalGuy 30th Jun
@Scott Raymond

This is so disingenuous and oversimplistic, it borders on stupid. Apple doesn't do what the customer wants when the customer just wants to sit on their fat behind and never move beyond old technology. I'd rather those kinds of radical forceful moves than having to wallow in legacy support for over a decade.
@Scott Raymond

I was blown away by the fact that FCPX wS intro'ed at NAB and was essentially laughed at by most of broadcast post community because they took it out of the workflows that it formerly worked well with before (Namely Avid).

I do see however how Apple may be looking to create their own ecosystem of support apps with this version of FCPX; compressor for example now extends the codecs available for output. Sapphire is not compatible with FCP, which represents a serious blow to the special effects industry's use of the new version until something new or updated takes its place.

In short, I still think this was a major gaffe for Apple, but in the end, they may be running the same playbook they have with iPhone, iPad and everything else Apple; closed ecosystem.
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sportmac Updated - 30th Jun
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sportmac Updated - 1st Jul
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@nomorebs FCPX blows and is lacking some key professional features, such as backwards compatibility with previous versions of FCP. That's a show stopper. FCP7 is great software, every videographer (and I know several who do it professionally) I know uses it (plus some other video editing software), they all hate FCPX and are extremely pissed off.
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freepuzzlegameonline.com / full-house-design.com

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As an Apple shareholder, can't argue with that. Apple has made very few business missteps recently, and I'm betting the FCP X decision isn't one.
@Userama: ... abandoning professional market. Actually, Oscar-winning film editors praise the new FCPX.

However, TV editors are totally different story; they have different needs (projects import/export, dragging old tape operations, working with tens of cameras, exchanging projects -- none of which is needed for feature film editing).
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@DeRSSS Are you seriously trying to make the claim that professionals like the new FCP X the way it is? This pretty much solidifies the case against you as the Blinders you wear are very effective!
@Peter Perry: DeRSSS is just another Apple stockholder who will try to convince everybody that Apple can do no wrong.
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@DeRSSS

Some films are shot with multiple cameras. A lot of feature films use stock footage. Some use multiple types of cameras for different including dSLRs and Red cameras.

I think project import/export is a much more common need than you'd think.

Every videographer I know (and I know several who do it professionally) is royally pissed off about FCPX. A couple of them have even received their money back by requesting a refund...

What I want to know is why Apple's censoring negative reviews in the App store of FCPX. One of my friends had his negative review deleted.
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@DeRSSS
not editors.
Angus Wall.
Let's wait and see how many other film editors (who actually use the software, a great deal don't) praise it before declaring it "better".
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ronbrinkmann Updated - 30th Jun
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@ronbrinkmann
I just saw an old video of Steve Jobs speaking to a bunch of developers shortly after he returned to Apple about his intention to keep Apple "focused". He said that you do that not by saying "yes", but by saying "no" to things. He acknowledged that some people would be pissed off when you do this, but that it's necessary. I think Apple has done an incredible job of staying focused, and that saying "no" to the video pros was a necessary move to keep things on track.
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@Userama Seriously? FCP is not priced to be consumer software.
@Peter Perry
I think there's a sizable market for which iMovie isn't enough, but FCP 7 was out of reach price-wise. That looks like the target for FCP X. Also, it appears that if Apple keeps its promise to add the "missing" parts, or if third-party add-ons fill the holes, the pro market will find FCP X a great value as well.
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Contributr
RE: Apple is abandoning the professional market
Scott Raymond Updated - 30th Jun
@ronbrinkmann Someone obviously didn't like what Ron Brinkmann had to say because it struck a nerve, and got his post removed under false pretenses.

I am reposting the link here.

http://digitalcomposting.wordpress.com/2011/06/28/x-vs-pro/
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Change is hard
CowLauncher 29th Jun
Moving from linear to an object based method takes some getting used to. But in the end it is an infinitely more productive way to work. And Scott, your conjecture that Apple is leaving the Pro market is just silly.
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@CowLauncher I am in agreement here, it makes no sense to abandon the artistic market that got Apple its biggest support base. What was it Jobs used to say, "The McIntosh Team are the only Artists at Apple" and this was clearly something he valued.
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@Peter Perry
NOT a big Peter Perry fan, but WHY ON EARTH was this post flagged?!?
@CowLauncher if moving from a linear to an object based method was what FCPX was doing, you'd be right. That isn't the case however. FCP is a NON-linear editor, and it has a wealth of features that video editors depend upon. FCPX is also a NON-linear editor, it has some rather radical changes in interface (basically Apple copied a significant portion of Sony Vegas of about 5 years ago) and it dropped A LOT of important features.

The latter is the key point. It isn't that FCPX is a change that video professionals have to get used to. FCPX actually dropped features that are REQUIRED to make both TV and Feature Films. FCPX simply cannot be used for such work at this point.

THAT is what has pissed the video community off. Not that they have to learn a new way of thinking.
@CowLauncher This is just simply a silly remark. These are not mutally exclusive concepts unless your programmers are so inept that they can't do both. A track based workflow can be object oriented. A track based paradigm can simply be a view of multiple object properties over time. An editor should have the choice to manipulate the properties of an object as he or she see's fit. This is achoice to make it easy for beginners. Fine. Professionals want to see visually where all there assets are in one place and have the ability to organize them hierarchically and temporally with immediate visual feedback. Tags don't do this.
Look at the real evidence. You can see that Apple is making a huge effort to get their devices to be as effective in the normal workplace as they are at home.

o MS Exchange built into OS X and iOS default installation. (Not so for Windows).
o Active Directory support built into all version of OS X (Not so for Windows).
o Improved support for Windows 2008+ SMB/CIFS file sharing in Lion.
o Excellent VPN support built into OS X and iOS.
o OS X Server is becoming a "cheap" add-on to OS X Lion. Makes professional network & client management accessible to small/medium businesses.

Apple has gone to a great deal of effort to reinvent FCP workflows - it should not be assumed that innovation equals abandonment of a market segment. Nearly all of the features that "Pro's" are missing will be added in updates, or by 3rd party plugins.
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@TheSceptic

MS Exchange built in to OS X and iOS. (mind you, MS Exchange is a Mail Server) -- the ability to hookup to MS Exchange does not mean it's "built in"

Active Directory support built into all version of OS X -- LOL. OH? Linux can be added/connected to Active Directory as well, but that doesn't mean OS X or Ubuntu get any benefit from it past user authentication. For REAL Active Directory support, you have to have Windows... that way you get the granular management and administration that Active Directory was designed for.

LMAO.. using your concept of "built in"... you should be saying: because you can plug your Mac into a given network and access the internet, you have GLOBAL PUBLIC/PRIVATE NETWORK ACCESS FUNCTIONALITY "built in"
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@SonofaSailor

With a third party product like Centrify, you can manage OSX, Linux and Unix machines through GPOs, too.

Not disputing your overall point about the built-in AD support, just your point about having to have Windows to get management benefits from AD.
@TheSceptic

Active directory support is built into all professional editions of Windows. Home editions have no place on my corporate network... And you know what? That active directory support STILL isn't complete active directory support. It doesn't fully support group policy. If you've got a domain controller, you're not going out and buying home edition computers. This is one of the dumbest selling points I've ever seen someone cite.

Exchange support? That should be in your calendaring application. If you buy MS Office your exchange support is built into outlook. What if I don't want the overhead of something I don't need on my machine?
Skipping FCP X for just a moment, you forget about Logic Pro and Aperture, just to name a few professional Apple apps that have sizable professional business adoption.

Coming back to FCP X, my opinion is that it is a work in progress and within two years (probably one year), Apple will, I suspect, address all the legitimate shortcomings expressed by professionals for this application.

As for myself, I bought FCP Express and kept it updated but rarely used it for video work.

When iMovie was introduced, I used that program quite a bit and with the second generation of that program, most of the criticism posted for iMovie I were answered. (iMovie has a superior UI, IMO, then either FCP or FCExpress)

If persons categorize FCP X as iMovie Pro, then that is a good start. If I'm not mistaken, FCP had similar professional "gaps" when it was introduced and then, over time, became the professional video editing application of choice.

Final Cut Pro X will share a similar fate. It's sort of like adopting the first release of an operating system. Each and every OS benefits greatly by its first "service pack" release.
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@kenosha7777 Your memory of Final Cut Pro history is distorted. But, what is so RADICALLY DIFFERENT TODAY is that Apple has moved on in vision and possibilities.

They see that they cannot, or are not willing to maintain two separate suites of video editing tools. One for the masses and one for the relatively small niche of "professionals".

Their approach is to, hey, merge them and leave out all the tools that make the "professional" difference. When Apple talks about revolutionizing the industry they mean how THEY all get hot and bothered. Their self-vaunted "re-thinking" focused on how they would organize their Events, a term which illustrates imposing their whole vision of Apple from iTunes to iMovie to the way on-board cameras in Macs store self-made videos.

They were not thinking of large-scale media projects and collaboration with other professionals at all. Who needs to collaborate when you have that groovy color wheel and automatic cleaning up of audio?


They were thinking of everything done right there on THAT machine, which cannot happen in a more media intensive professional project for a "big time" or "small time" client.

That they upgraded iMovie and yet had the chutzpah to USURP the Final Cut Pro brand name when they released it is truly a backhanded slap and arrogantly applied to the crowd using Final Cut Pro 7.

You are hoping for something "in a couple of years" that is wishful "fanboy" thinking. Apple has no intentions of going back to seriously upgrade FCP X to what should be Studio 4 and Final Cut Pro 8.

As far as Jobs is concerned Apple has far superseded such a tiny minority of users as term themselves "professionals". He is convinced he and his team can do everything they can do and easier and faster and more creatively with whatever Final Cut Pro X can do.

And with that kind of leave-my-friends-in-the-dust approach Apple is poised to "re-examine" the way video editing is done two years from now and to suddenly release "Final Slash iCloud" which will not open up Final Cut Pro X Events.
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RE: Apple is abandoning the professional market
DeusXMachina Updated - 30th Jun
@MacReview
What are you talking about? The OP's history is spot on. FCP 1.0 was bereft of features, and could not compete as is against Premiere.
The rest of what you posted as fact is pure speculation, with not ONE iota of empirical proof, and quite a bit to contradict it.
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RE: Apple is abandoning the professional market
Playdrv4me Updated - 30th Jun
I'd pretty much figured this as a foregone conclusion ever since Apple moved to glossy displays in all iMacs and the vast majority of Macbooks. I also find nothing wrong with a company determining its largest potential market is the one it will primarily cater to.
The article is correct in that Apple is continuing to follow Steve Job's consumerist mainstream vision. But, Steve Jobs feels in such a position of power to lead and for us to simply shrug and follow no matter what twisted paths he takes.

Way too many professional tools were left out of what should be Final Cut 8 and Studio 4 that it can not count as an unfortunate oversight that Apple intends to "correct".

Apple made a STATEMENT, not a MISTAKE.

Final Cut Pro X is not a tool that Steve Jobs would ever use. Therefore, he is willing to lose this market. FCP X is already way too complicated for Steve's overriding design vision. I am sure he somehow thought it should be reduceable to an iCloud application and runnable from an iPad. He has too many other pressures and new horizons to look back long enough to "take care of the professional video industry".

You have to remember that he lives in Appleland where he can just hire a bunch of creatives to work full time in Cupertino making video stories just for him using Final Cut Pro X. If Jobs wanders into his own Media centers in his gigantic space pod and sees his people working with Apple super iMovie tools (fcp x) he will just say, "Why can't those so-called pros in Hollywood turn out stuff this good with MY Apps?"

Apple thinks they are so far into the future and that media production and digital storytelling are simple childs play. And in their vision no matter what tool you use the end result is going to wind up being piped around in the iCloud for their profit, anyway.

Adobe is your "Apple-like" choice for editing software, as I see it now.
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@MacReview

Ibid.
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Interesting observation
jwspicer 30th Jun
Not so sure Apple is abandoning professionals or just changing the 'professional' they are aiming at.

Reminds me of the late '70s and high-end audio. A very respected Japanese company that made extremely good (and extremely complicated) tape decks suddenly came out with a new line that made use of the new computer chips to simplify the controls and operation of their machines - and make them a lot less intimidating. No, they were still bleeding-edge high-end and still outrageously expensive. And the critics hated them. No, it was not any loss of sound or build quality - it was they 'dumbed then down' too much. Then one reviewer hit it right. The new machines were 'Doctor's Decks' - designed to perform at their peak all the time, but be used by those who could afford and appreciate them, but did not have an infinite amount of time to tinker with a piece of hi-fi gear. They wanted to get the job done and done well, but get the hardware out of the way. And the term stuck.

Seems we have been watching Apple do that to the computer for the last few years. And it makes sense, if you really want all the dials and knobs and switches Windows and Linux boxes and software are readily available. Otherwise, grab Apple gear and software and just go do it. Perhaps that is why FC X is the way it is, it is less for consumers and more for those who have done it the other way and grown beyond that now, and want to just get their movie together and not putz with everything else.
@jwspicer The problem being (using your example), they DID lose sound and build quality: that is, they removed a bunch of features that were in the old version that are now IMPOSSIBLE to do with the new one.
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Avid MC or Adobe to the rescue.
kraterz Updated - 30th Jun
I'm a Mac user but this *unprintable* move by Apple is a classic example I keep giving my fanboi friends who worship the cult of Lord Jobs. There are products like Avid MC and companies like Adobe whose very existence is built on the pro market. It makes far more sense to me to place your trust in such companies when you need continuity in your work over a period of many years or decades. I know people with 60-100 terabytes of media projects who can't just jump to a new platform.
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RE: Apple is abandoning the professional market
DeusXMachina Updated - 30th Jun
@kraterz
They just released FCPX. How can this be a classic example of anything? Perhaps you don't understand what the word means.
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Developing for the 'human' market.
Englishmole 30th Jun
Apple isn't abandoning the pro market for the consumer market. They've simply realised it's the same market.
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