As expected, Apple destroyed it's Q3 2011 earnings forecasts. It seems like nothing can bring down this juggernaut. But 15 years ago a little company called Microsoft was doing the exact same thing. Year after year, nothing could stop Microsoft's dominance of the computer industry. Bill Gates and Steve Ballmer would high-five at analyst meetings where they reported billions upon billions in profits every quarter. Today, Microsoft is still reporting billions of dollars each quarter in profits but they're no longer the king of jungle. But remember, everything is a cycle. It is with absolute certainty that I say Apple will one day falter and another company will step up to claim the crown. Whether it's Microsoft, Google, Facebook or some new entry, somebody will take them down. Such is life in tech.

Windows Phone 7 or WinPho7 (sounds like a tech noodle restaurant) launched today. A definite step up from Windows Mobile but still not enough to make people jump from Android or iPhone. Microsoft is definitely looking for the portion of the population that hasn't made the move to a smartphone yet but unfortunately for them, so is Google and Apple.

What gives me pause about this phone is not the interface. I haven't played with one yet but it looks intuitive and has some innovative features. My issue is the hardware which interestingly enough comes from the same manufacturers of Android phones. Samsung, LG, HTC, etc. just don't make amazing phones. They all make good phones but nothing earth shattering which is what it'll take to overtake the likes of Apple. Every Android phone I've held feels cheap, big, clunky, etc. It'll probably be the same with the new WinPho7 models. The bad part is that because the operating systems need to support multiple models, there will be compromises made to the least common denominator. A recipe for making a mediocre product.

Microsoft and Google have more than enough resources to throw at great industrial design. If this is truly a key market for them then they need to develop their own phone. The money is not in software alone. Google gives away the operating system and makes money on app sales and ads. Microsoft will most likely charge a nominal licensing fee for a WinPho7 license. Apple makes nearly 60% in gross margins on the iPhone because of hardware and software. That's about $300+ per iPhone but it's not all about the money - it's about building a phone that will blow away the competition.

Wait, So 20 Phones On 4 Carriers Outsold 1 Phone On 1 Carrier? Shocking.

I love MG Siegler's style of writing. A little snippy with a large dose of fanboy mixed in. Don't get me wrong, I like Apple products probably as much as he does. The only difference is that I'm looking at the numbers that were released today regarding smartphone market share not with disdain but with a general sense of dread and optimism mixed in.

Make no mistake, Android is on the rise. Though I think they make an inferior phone, they are successfully encroaching on Apple's market share. Remember what happened when a supposedly inferior product started encroaching on Apple's market share back in the early 90's? Apple can't turn a blind eye to this and I don't think they are (though I think the fanboys are). My hope is that Apple sees this as a huge threat and decides to do something about it - like say release the iPhone on other carriers. That's why I feel some optimism about the news. If it pushes Apple to make a better product or more carrier relationships then it only benefits me, the consumer.

So this was announced today...

Over the weekend, I saw a bunch of ads for the Droid phone from Verizon. It seems their main selling point was how more powerful the phone was and they are correct. It will always be the case that Android phones will always have the latest and greatest hardware, just like with most Windows laptops. Apple will never make devices with the fastest processors, the most RAM, the hardware latest innovations. What Apple has made a very calculated decision on is they would rather have a more polished product than one with the best specs. They weren't the first with a front facing camera but I bet mobile video chat will explode because of their implementation and not any one else's that came first. Same thing with multi-tasking. Not the first, but a more smooth integration.

For a long time there was this pseudo arms race in the tech industry of who could cram the most transistors on a chip or the most pixels on a screen or crank up a few more Mhz from a CPU. I think we've gotten to a point where the vast majority of us have way too much horsepower in our devices. Now the question is who will use that horsepower in a way that appeals to us. Apple seems to be leading in that sense... for the time being.

Google Acquires Teracent To Apply Machine Smarts To Display Ads

A long time ago, in a galaxy far far away, I had a little start-up that was doing Netflix style delivery but for video games. Vikas Jha, currently CEO and founder of Teracent, was kind enough to join our board of advisors. He had no obligation to do so and was just interested in helping out a fellow entrepreneur. Fast forward to today and I'm ecstatic to hear that Google has bought Teracent. Hope you made out well Vikas!