Apple's One Weakness: Ripping People Off Unnecessarily

No one loves change more than Apple (NASDAQ: AAPL), but is the company's strategy - build, destroy, and repeat - a necessary part of its evolution? Or is it holding Apple back?

There has been a ridiculous amount of media attention surrounding the 30-pin connector that currently sits underneath the iPhone and whether or not it will be replaced with a smaller opening when the iPhone 5 is released. To some, this seems like a silly feature to worry about. Who cares if the connector is smaller?

But the arguments in favor of the switch are quite significant. By shrinking the connector, Apple could feasibly design thinner iPhones. According to Reuters, it could even allow Apple to include a bigger battery. That being the case, all consumers should (theoretically) be in favor of an iPhone connector redesign.

However, if Apple decides to change the connector in any way, hundreds of existing iPhone and iPod attachments -- including speaker sets and radio docks -- would not be compatible with the iPhone 5.

This is the real source of the media hype. If Apple introduces a smaller connector, the company will effectively tell consumers that it does not care about what they want -- it only cares about what it wants.

How would this benefit Apple? For starters, it could reduce the manufacturing costs of the next iPhone. Reuters spoke to an analyst who said that it would also create new opportunities for accessory manufacturers (since consumers would be forced to buy docks and other devices to go with their new iPhones).

That said, most docks and newer automobiles come equipped with auxiliary ports. Many vehicles also feature a USB port. In either case, the size of the iPhone's connector is irrelevant.

Whether Apple does it today or tomorrow, the company must eventually shrink the connector size in order to develop smaller iPhones. And when that happens, the media will inevitably act like it is the end of the world.

In truth, Apple is not really going to hurt anyone by doing this. To pacify the worriers, Apple could release a dock adaptor for the iPhone 5. Then everybody wins. And if Apple fails to capitalize on this market, there is a good chance that some enterprising third-party manufacturer will develop its own adaptor.

Instead of worrying about the size of the iPhone 5's connector, users should be more concerned about Apple's other forced changes, such as the decision to lock down the next-gen MacBook Pro, which is difficult to repair. Some parts, including the battery, are glued to the device.

Last summer, Apple decided to kill off its pro video editing software, Final Cut Pro, by releasing a cheaper and simpler version that could not run old files and contained fewer pro features. The video editing community did not respond well to Apple's decision. Up until that point, Apple had slowly taken market share away from Avid (NASDAQ: AVID) and Adobe (NASDAQ: ADBE).

These are the kinds of developments that Apple fans should be worried about -- not the size of the connector at the bottom of their next iPhone.

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