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Wed, Oct 08, 2008 - 03:45 AM EDT  —  AAPL: 89.16 (-8.98, -9.15%)  |  NASDAQ: 1754.88 (-108.08, -5.8%)

RUMOR: Apple quietly shopped around its entire pro apps portfolio at NAB
Friday, May 02, 2008 - 03:16 PM EDT

PBS's Robert X. Cringely is reporting that Apple was "quietly shopping around its entire professional application business to prospective buyers at the recently completed National Association of Broadcasters show in Las Vegas. These include Aperture, Final Cut Pro, Logic, and Shake -- applications that are hardly also-rans in their segments and none of which are antiquated in the least. Final Cut, of course, absolutely dominates the video editing business."

Cringely wonders, "Why would Apple want to give that up?"

"Apple's recent hardware successes have come at the expense of Dell and HP," Cringely writes. "If that's the case, then the typical Wall Street drone would say, 'Why not kill the professional apps, since they seem to no longer even be necessary for Apple's success?' In Wall Street's quarter-to-quarter perspective, selling off Apple's professional applications makes perfect sense. Except that Steve Jobs tends not to think quarter-to-quarter so much as decade-to-decade. This is a guy with a LONG horizon, which is why he appears, frankly, to be the only one of his peers with either a plan or a clue. As Jobs did with the iPod and iTunes and now with the iPhone, he is setting the standard and most Apple competitors are mainly waiting and reacting, which is hardly a way to lead anything."

"Apple's decision to not yet ship systems with Blu-ray drives or even support third-party or external Blu-ray drives in its professional applications has caused consternation in the $4 billion event video industry... This has hurt Mac sales and Final Cut sales, and since Steve Jobs isn't stupid it is probably deliberate," Cringley writes.

MacDailyNews Take: Come now, Mark, er... Robert, has it really hurt Mac sales and Final Cut sales? If so, please quantify the "hurt" and do so with something called "proof" (for once).

Cringley continues, "There is only one real reason why Apple would sell off its professional applications and that's to avoid antitrust problems when/if Apple buys Adobe Systems... While in my opinion the Apple video software is clearly better, Jobs couldn't be at NAB trying to sell Premiere -- software he doesn't yet own. Maybe there's a planned bait-and-switch, seeing who is interested in Final Cut then trying to shift them to Premiere."

More in the full article here.

MacDailyNews Take: We've long hoped that Apple would buy Adobe and — drumroll, please — begin phasing out Windows versions of applications a la Shake. You want Photoshop? Get a Mac. Illustrator? Get a Mac. Dreamweaver? You know what to do. It's time to start driving the stake through Microsoft's cold, shriveled, black, non-beating heart. Even if Steve doesn't want to be that ruthless yet, at least Mac users would get much more timely updates from Apple than from Adobe. Unlike Adobe, Apple knows how to use Xcode.

Apple is currently worth $158.52 billion and has nearly $20 billion in cash on hand. Adobe's current market value is just $21.41 billion. Pull the trigger, Steve!

[UPDATE: 5:31pm EDT: "This rumor is false. Competitors have been trying to spread it around for a few months now. Apple's Pro business is thriving and it is not for sale. Period. Steve" - Comment posted below in Reader Feedback (stamped May 02, 08 - 05:13 pm) from "Steve Jobs" did indeed come from an Apple Inc. IP address in Cupertino, CA. We're not saying it is from Mr. Jobs, but it did come from Apple.]

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May 02, 08 - 03:21 pm Comment from: Tom Strong

If Apple is really doing this, then FSCK YOU APPLE.

May 02, 08 - 03:21 pm Comment from: macoverdose_dot_com

Let us pray!

May 02, 08 - 03:25 pm Comment from: TheConfuzed1

While I agree that Adobe apps would be better off under the Apple umbrella, I don't know if it's worth the cost of knifing the babies that are currently in the family.

May 02, 08 - 03:26 pm Comment from: macoverdose_dot_com

theres no way apple will sell off its pro apps.... thats bs.... but like I said above... lets pray they buy adobe

May 02, 08 - 03:27 pm Comment from: Nutcracker

More rumor-mongering about Apple:

...they were, "quietly shopping around its entire professional application business to prospective buyers..."

Oh really?? Says who? What are your sources?

MaWo: 'simply'. As in, 'Cringley is simply stroking himself and fomenting baseless conjecture.'

May 02, 08 - 03:28 pm Comment from: maclover

come on ppl -
what Cringely is suggesting is a dumb move,
and Cringely may be dumb, but Steve Jobs isn't.
So let's just call this report - 'reaching for hits' instead of
'insider knowledge'. No need to get bent outta shape.

May 02, 08 - 03:29 pm Comment from: Follower

If Apple would buy Adobe, I simply can't see them selling off Final Cut Pro and then trying to market the newly-renamed Apple Premiere. It would make more sense if faced with antitrust issues to stop making Adobe's current pro products. I don't know too much about the video industry, but I do get the impression that it's pretty much just Avid and Apple.

May 02, 08 - 03:30 pm Comment from: NeonRed

Hey PC users have Publisher and Corel... And Word...What else do they need for top quality output for print. After all print is a dead and dying process. Web 72 rules!

May 02, 08 - 03:32 pm Comment from: Jeremy

It's a pretty weak analysis IMO. Cringley's main reason for the purported sell-off is anti-trust issues, yet this would only be the case with Final Cut Pro, not the other pro apps. Also, he bases a lot on the mysterious intractability of Apple when it comes to including blue ray support yet there is another much more widely held and plausible explanation for that. Blu-Ray requires Apple to implement highly invasive, hardware supported DRM in every Mac that has a Blu-Ray drive. This kind of support is the very reason it takes Vista 20 minutes to transfer a 100 Megabyte file from one disc to another. Blu-Ray is not supported by Apple because it's an "anti-consumer" technology and no one is buying blue ray discs right now anyway. You don't have to look any further than that for explanations.

May 02, 08 - 03:34 pm Comment from: Your News Source - Jim

If so, Apple wants give up the Pro market and go total "Sony" retail consumer.
I am sure their Pro apps business is very, very small.

And if they wanted to buy Adobe, they would and just kill off or integrate its products with adobe products.

May 02, 08 - 03:43 pm Comment from: studentrights

That would be the dumbest thing they ever did!

May 02, 08 - 03:44 pm Comment from: Heroin

APPLE, DO NOT DO THIS.

I don't trust any other software company in the least.

May 02, 08 - 03:57 pm Comment from: drz

For a few billiion less, couldn't Apple write its own suite of Adobe-like apps to compete and outrun Photoshop, Illustrator et al?

May 02, 08 - 04:01 pm Comment from: DogGone

Cringely is wrong - yet again.

The Pro Apps sell Pro Macs. Simple. Apple will not walk away from that. Adobe products whilst good in some cases is not sufficient cause to sell off the Pro App line.

May 02, 08 - 04:02 pm Comment from: Sarcasm?

'Hey PC users have Publisher and Corel... And Word...What else do they need for top quality output for print'

I double dog dare you to take a file in any of these formats to a printer! Printing flyers aren't the only things these industries do . . . think every t-shirt you have with something on it, everything that comes in a package, etc., etc. These are files that are all postscript dependent; it doesn't matter how many brochures etc. die a pitiful death for web based material, the software is still necessary. Not to mention professional photographers, printmakers, art galleries, the list goes on and and on. I'd love to see someone try to create a fine giclee print in Word. If Apple bought Adobe, I'd do a little dance, but If they are shopping around the pro apps they have, why would they bother?

Or maybe you were being sarcastic.

May 02, 08 - 04:03 pm Comment from: Fred Mertz

drz,

Then Apple would still have to sell it to all the dumbasses who would cling to Adobe.

It's way cheaper to buy Adobe than for Apple to "write its own suite of Adobe-like apps to compete and outrun Photoshop, Illustrator et al."

Look, using your logic (Logic, get it?) Apple wrote it's own OS that totally kills the competition and, even then, they still can't get most of the great unwashed to buy it.

The great unwashed want Microsoft to keep selling them a 7-year-old piece of shit OS!!!

It's much more valuable to own the name "Photoshop." You buy Adobe and make it Apple Photoshop and all of the Photoshop users will just continue buying it - no effort to code a competing app, try to sell it to stubborn morons, etc.

Apple should buy Adobe.

May 02, 08 - 04:07 pm Comment from: Demon

Interesting has it has not been that many years ago that Apple acquired eMagic to get Logic. I do think that Apple might create a spin-off subsidiary aka Claris now File Maker for the Pro Apps. This would make more over all clarity as a Pro Apps company could then expand without stressing Apple's R&D;and advance the products in a more user focused direction.

With iLife, iWork, iPods, iPhones, iTunes, .MAC, XSAN, Macs, MacOSX, MacOSX Server, and the Pro Apps there is a lot more Software and products under the Apple Inc. banner then normally Apple likes as they normally like to keep it to the core Apps.The Pro Apps are a natural breakpoint for a split. They are popular enough and mature enough that a wholly owned subsidiary company could be a profitable endeavor for Apple, just as File Maker as been over the years.

May 02, 08 - 04:09 pm Comment from: bon

Rule of thumb: Don't spend 20 billion dollars on sucky companies.

May 02, 08 - 04:14 pm Comment from: John E

Cringley has been living off a reputation he got years ago for something i can't even remember. the guy's self-important fool.

May 02, 08 - 04:16 pm Comment from: Macintosh

This is silly. So Steve Jobs was going into companies booths or conference rooms and sitting down with the CEO? Or pulling them off for a side conversation?

Like, hey Larry, come over to this room and sign this Non-Disclosure Agreement real quick, I wanna ask you something dude...

Wouldn't they fly these people in, meet in some sound-proof Apple super room or something?

May 02, 08 - 04:26 pm Comment from: Yours Smugly

There is no person called Robert X. Cringely. The name's a pen name used by several writers.
http://en.wikipedia.org/wiki/Robert_X._Cringely

May 02, 08 - 04:27 pm Comment from: Steve P.

No, no, no... what happen was that we... opps, Apple was seeing who is interested in, 'hem, Apple pro apps, so when APPLE buys Adobe, they can sell off the lesser ADOBE apps that compete with Apples and keep those wonderful and great APPLE pro apps.

Gosh... do you think we, opps, sorry again, that those guys over at Apple are that stupid, we don't have a Sales Person in charge, like some other poor, dying company that we are not going to mention!

Peace and Love...

May 02, 08 - 04:33 pm Comment from: John C. Randolph

Not buying it. Adobe has nothing Apple needs that they can't get for a hell of a lot less than Adobe's market valuation.

-jcr

May 02, 08 - 04:41 pm Comment from: Ampar

". . . Microsoft's cold, shriveled, black, non-beating heart."

I disagree. Microsoft's heart is beating. It's just not in Sync.

May 02, 08 - 04:51 pm Comment from: bizlaw

Apple's not going to sell off it's pro apps just to buy another set of pro apps, many of which are inferior.

The only reason Apple would be shopping the pro apps is if Apple has decided that it is spread too thin to support and continue to develop OS X, iWork, iLife, Pro Apps, and iPhone and iPod apps. Aperature certainly took a PR beating with its myriad of problems (which Apple seems to have corrected, but which shouldn't have made it out the door in the first place).

Think of how much work Apple has had to do to create the iPhone, and now the iPhone SDK, and I'm sure iPhone versions of iWork/iLife apps. Without expanding and growing your pool of programmers, Apple will start having issues. The iPhone SDK was delayed 6 months – Apple said it would be out in Feb., then only released a beta.

It may simply be that SJ doesn't consider Pro Apps to be in Apple's long-term future, particularly since Apple has moved out of the graphic designer/musician niche (perceived or real) and is now viewed (publicly and in the media) as a mainstream competitor to Microsoft.

May 02, 08 - 04:51 pm Comment from: ndelc

This makes no sense at all. That would be like Adobe selling off Photoshop before buying Macromedia because they were gonna get Fireworks.

I'd love to see Apple buy Adobe, but the rest of this is absolutely ridiculous.

May 02, 08 - 04:55 pm Comment from: shen

lol Ampar, nice......

May 02, 08 - 05:02 pm Comment from: Rainer

Apple buying Adobe would be a 0.5 Microhoo on my scale.
A huge cash-disintegration-festival.
Nothing more.

And this rumor comes up twice a month, I can't believe it.

May 02, 08 - 05:09 pm Comment from: Michael Moskowitz

Why would any of you believe either piece of this bullshit (Cingely's or Mac Daily News. This is nothing but fantasy. The one thing I could guarantee is that if Apple is selling off it's Pro Apps it is to make money for a major shift in its focus, not to buy Adobe or because the Apps are a drag on its sales (or sails).

May 02, 08 - 05:13 pm Comment from: Steve Jobs

This rumor is false. Competitors have been trying to spread it around for a few months now. Apple's Pro business is thriving and it is not for sale. Period. Steve

May 02, 08 - 05:23 pm Comment from: Switched

I know for a fact this is a completely false rumour spread by worried competitors.

Cringely is just late to the party.

What competitor wouldn't want this rumour to be true. Avid certainly would. In a few years it will be Avid who?

May 02, 08 - 05:25 pm Comment from: Demon

For the Record when the Claris split started it was widely rumored it was done to sell the products. Then when Apple didn't make any announcements of a sell, the rumors were because they could not get a buyer. I have a friend that worked at Claris at the time and there was never any intention by Apple to sell it. But to spin it off Apple did have to shop for a value of the products it they were selling the asset. Just to move it under it's own umbrella for accounting and asset reasons.

Microsoft likes to keep everything under the Microsoft umbrella, Apple has always preferred the Berkshire Hathaway model of developing and making it a wholly owned or controlling owned subsidiary, So, the parent company stays smaller and more nimble.

The MicroHoo thing is the perfect example: Microsoft is a fully loaded cargo container ship it takes them 40 miles to turn 60 degrees and Apple is a speed boat able to turn on a dime.

May 02, 08 - 05:27 pm Comment from: Docbop

Wouldn't be the first time Apple has cut back on software development in their history. The Pro App's are expensive development projects and Apple is slow to release fixes and updates. Logic Pro that I mainly use version 8 needs a lot of work and only one update so far. Apple could be thinking about Adobe, or thinking is the profit from ProApp's isn't worth the required development expense? Look at how they recently got out o the SAN hardware business and only sell the software now. Apple is trimming products expensive develop and maintain.

May 02, 08 - 05:29 pm Comment from: the other Mark

As ws mentioned regarding Filemaker, I could see Apple spin this off into a separate company. This apps were once critical for Apple's professional survival. No longer. Marketshare is up. Macs are flying off the shelves. People want to buy Macs.
But still, I currently don't see it happening.

Further there is no way Apple should buy Adobe. They have little to offer.

May 02, 08 - 05:41 pm Comment from: R

Cringely has long been a dreamer. He loves to smell his own brand. How is it that he stays around?

Oh... PBS? Never mind.

May 02, 08 - 05:42 pm Comment from: toonie

Buying adobe would be dumb and pulling the plug on Window versions of their apps would be even dumber.

I mean really! Spend $25 billion to buy a company and then pull the plug on the software which represents at least half the value of the company. You would so antagonize all those Windows users most of them would find an alternative rather than be bullied into buying a Mac.

Only MDN could be that boneheaded!

May 02, 08 - 05:43 pm Comment from: Steve

This is hogwash. This guy's been way off in the past. I don't believe it for a second.

May 02, 08 - 05:43 pm Comment from: Jim - TIV

So SJ watches what goes on at MDN? Nice....

May 02, 08 - 05:48 pm Comment from: hardmanb

Apple will not sell the pro apps.

If there is anything to this rumor, it could be mind-fog by Steve, or pure misdirection. Jobs is not above mischief and enjoys keeping everyone guessing (or misguessing). Although it would be fun, Apple just doesn't need to buy Adobe.

Apple obviously has had, and does have a plan that spans a decade or more. Their secret sauce is giving consumers what they need and desire, not what they want to sell. Success follows consumer satisfaction.

May 02, 08 - 05:57 pm Comment from: tt

I call BS...

but it would kind of make sense in the monopoly aspect of things..

Unfortunately not everyone wants Apple to be the OS, the hardware, and ALL the Apps forever.

Steve; since we have your attention...

Please build a mid range tower with at least 2 pci express slots, and 2 full size internal sata hard drive bays...

You could turn the mini into a nano with no optical drive, and upscale the new unit to the Cube or you could just call it 'Mac'

Come out with a little cheaper LCD

I hear you wanting to push the imac more than anything.. but there are market segments that REQUIRE this type of hardware. and that cant afford a mac pro.

As far as I can see the mainstream desktop is missing from the portfolio... c'mon what do you have to worry about at this point?

Or you could make a gaming imac, with a handle, better screen protection (not magnets holding glass), and again REAL desktop graphics.

Maybe you are just waiting for a itunes gaming package deal you can sell the games from there.. I know you know.. you have to..

dreaming of a mac I can afford...

there are so many people that just cant shell out the money thats required for a new even entry level Mac.. beleive me I know I was selling shitboxes up till a couple weeks ago. (Looking for employment in Michigan BTW)

Lower the price, and the flood gates are going to open.. you have the same plan that AT&T;is about to implement with the iphone, that will work too..

PS thanks for making my computer a complete joy to use.

May 02, 08 - 06:30 pm Comment from: The Truth

It's Avid who have been spreading theses rumors. They have been hurt so very badly by 1. sitting on their fat asses, 2 not keeping up with the competition.

May 02, 08 - 06:37 pm Comment from: Register or Login

Take that MDN. Steve Jobs won't register either. Hah.

May 02, 08 - 06:40 pm Comment from: ralph from berlin

omg. is HE really among us? killing some time before the new iphones arrive? omg. what other rumors are false? please steve, we need more!

May 02, 08 - 06:43 pm Comment from: HolyMackerel

If Apple wants to buy Adobe then they should:
• remind customers that PhotoShop is a Carbon app and so misses out on all the Core functionality
• promote the Cocoa alternatives on their sites and demos
• write plug-ins for Aperture/iPhoto that do the common PhotoShop functions
• Produce a Windows version of Apperture
• Refuse to support Flash/Air well or at all
• Wait for Adobe's share price to plummet as the sales die they pick them up at the garage sale

May 02, 08 - 07:03 pm Comment from: I think that's right

The old Mac designer niche thing is no longer true; these are mainstream products now. Maybe they will spin 'em off. Makes sense to me. They seem to be more about the iTunes, iPod, Apple tv etc. sort of thing these days--and this is a company that knows how to maintain focus. I think it's entirely possible they truly DON'T see the Pro Apps being integral to their future. This is Apple--who knows what they've got up their sleeves? I doubt procuring Adobe is a part of it though.

May 02, 08 - 07:09 pm Comment from: Asmodeus

Steve's post could have been from an Apple store, unless the IP was indeed from Cupertino. Even then...

Just cynical, I guess.

@tt: Apple is not going to build a cheapo, expandable box. Not now, not ever. A vocal minority will not change their marketing strategy.

May 02, 08 - 07:47 pm Comment from: Jeremy

Everyone has said this already in other words but it bears repeating. The number one rule of buying other companies is that they have to have something you need.

Adobe has virtually nothing at all. they are sitting on top of an ancient proprietary codebase that needs to be completely re-written. If Apple bought them, they would have to re-write PShop from the ground up. Same goes for most of the other apps with the exception of Lightroom, which they don't need because they already have Aperture which is arguably better.

The only way the deal would make Apple any money at all would be if Apple merely continues to push the same products and polish the turd every year so that the marks all ante up one more time. Unfortunately this would violate Steve Jobs number one rule... "we can't ship crap."

May 02, 08 - 08:56 pm Comment from: rickw

Hi Steve.

May 02, 08 - 09:20 pm Comment from: jason

Hi Steve- How are things progressing in China? It would be great to see a deal with China Mobile soon. Keep up all the great work!!

May 02, 08 - 10:01 pm Comment from: Allan

MDN -- do you know anything about Adobe? Apparently not. Adobe Windows sales drastically outsell their Mac sales.

But why should MDN do any homework? All they need to know is Apple is great, anything they do is great and everyone else sucks.

I love Apple. But I don't agree that do do everything perfect. Adobe makes great products and the day Adobe decides to drop the Mac, you and I are all screwed.

MDN -- Please take "your take" and stick it.

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