Category Archives: MacBook

The secret to Apple’s success?

If there’s one company that is the envy of the high-tech community these days, it’s Apple.  Steve Jobs is hailed as a genius CEO and lauded for a string of hit products. Apple’s market capitalization is over $200 BILLION dollars currently, easily ranking it in the top 10 companies in the world by market cap, and just shy of Microsoft for biggest technology company.

Everyone wants to understand the secrets of Apple’s success and hopefully emulate them. The reasons given by people for Apple’s success are many. The following are a few of the arguments made:

1. Vertical integration – Apple owns most of, if not the entire, technology stack for its key products,  and thus gives it advantages over other less vertically integrated products.

NOTE: “Vertical integration” used to be called “being proprietary” and was given as the reason for Apple’s relative lack of success against Microsoft in the OS/PC battles of the 80s and 9os. But phenomenal success has a way of changing people’s minds.

2. Making markets vs.  addressing markets – Some claim that Apple doesn’t ask people what they need but gives them products they decide they want.

Does anyone NEED an iPhone or iPad? Not really, but a lot of people seem to want them.

3. The Cool Factor – Let’s face it, Apple does make “cool” products. Attention to design and detail – fit and finish as they say – really distinguishes Apple’s products from competitors.

4. Entering markets after they’ve developed — Contrary to #2 above, some people claim that Apple doesn’t make markets but enters existing markets once they’re growing and takes  advantage of latent demand.

The iPod was not the first digital music player and the iPhone was not the first smart phone, and the iPad is not the first portable computing device. In the case of the iPad, products like the Kindle and Netbooks actually paved the way for the market to accept  small computing devices, and Apple’s iPad is riding that wave.

5. Differentiated business models – whether it was iPod+iTunes or the iPhone+App Store, Apple innovates not just on technology, but on the business model. This makes it difficult for competitors to play catch up, let alone overtake Apple once it establishes itself in a dominant position.

6. People care about the experience not technology — Apple has always been about the user experience, but for a long time, the majority of the market didn’t care about that.

The majority of desktop computer users cared about “techs and specs”.  Now the tables have turned, and the majority don’t care about the specs, they care about the experience. The iPod, with it’s “1000 songs in your pocket” motto and iTunes which radically simplified purchasing music latched onto the experience wave, and Apple has been riding it ever since.

7. Simple product offerings – Apple has a very clear and simple set of products. It’s easy to understand the differences between their products, product families and the various configurations. This makes it easy to buy an Apple product if you want to.

A lot of companies complicate things unnecessarily. How many iPhone models are there? How many Blackberry models are there? How many Nokia smart phone models are there? See the difference between Apple, RIM and Nokia?

The same is true for the iMAc, the iPod and the iPad. Granted, there are actually a number of iPod models (Nano, Shuffle, Touch etc.) but they are very distinct amongst themselves. This can’t be said for digital music players from other companies.

I’m sure there are other reasons for Apple’s success, but it’s interesting to see how much debate is happening today on this topic. What it says to me is that there is no single reason for their success. And keep in mind that Apple has had failures as well.  Notice Apple doesn’t talk much about Apple TV. And remember the G4 Cube? The 20th Anniversary Mac?  Even the ultracool MacBook Air has had far from stellar success.

So, what do you think are the reasons for Apple’s incredible success over the last 10 years?

Saeed

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Taking the “mess” out of Messaging (part 4)

This is part 4 of the series. Here are links to Part 1, Part 2 and Part 3.

In this part, I’ll take a look at whether the industry can get out of the mess it’s in.

Looking back

Before looking forward, let’s take a look back at some ads from a couple of decades ago.

Click each image to enlarge.

Notice something about these ads? They all look rather similar. Pictures of (similar looking) computers and lots of text! Check out those headlines. “A new way of personal-professional computation”???? What’s that all about? Is it a personal computer or a professional compute? Well it’s both (and neither)! Ouch.

And that’s one fine looking set of muttonchops on Issac Asimov in the Radio Shack ad!

Even Apple was not immune to kind of advertising.  Here’s the original Macintosh print ad. A double-page spread! Click images to enlarge.

Cool. Did you catch the specs on the Mac? 64K ROM, 128K RAM, 32bit MC68000 processor, and even a clock/calendar chip!

Comparing these ads to advertising today, it’s  clear that things have changed for the better in 25 years. Apple certainly leads most other technology companies in their sophistication, but then, they’ve been at it much longer than most other technology companies!

As every industry matures, so does the audience for it’s products. Forty or fifty years ago, a lot of advertising for cars talked about engine horsepower, size (in cubic inches), acceleration, top speed etc. The only metrics that are frequently mentioned today are mileage or fuel consumption (and sometimes number of cup holders!). But that’s because those are important to us.

In personal technology, few consumers, truly care about the processor in their device. Quick, what kind of of CPU does you iPod have? What about a Blackberry? What about an iPhone? The Palm Pre? The Motorola Razr? The MacBook Air?

If you know any or (even worse) all of the CPUs in those device, you’re a serious geek. 🙂

But for the vast, vast majority of people, it doesn’t really matter one bit. Those days are behind us. We have matured and so has the industry. Of course, there are still many companies that talk in “speeds and feeds” or mumbo-jumbo, but in a maturing industry, they pay a price. The segment of the market that listens to the “tech-speak” is shrinking steadily.

Looking forward

If we try and look 25 years into the future, how will things have changed? Technology will have become much more embedded and ubiquitous in our environment.

The days of the big desktop computer will be gone. We will carry, wear and perhaps even embed devices within our bodies.

A second full generation of people will have reached adulthood living in an Web-enabled world. The word “offline” will be an anachronism. Augmented reality will be our reality.

In a world like that, how will people relate to technology? How will companies need to communicate with the market about their products?

The current “craze” known as social-media will be old news, and will just be part of the communication process vendors have with their customers. Consumers, particularly younger ones, will likely give up a lot of what is now considered “personal” information to companies, in exchange for individualized products and services.

In the context of the digital world, “Give me what I want, when I want and how I want” will simply be a common state of affairs.

Remember the phrase “personal computer”? That of course was shortened to PC, which is still used today, but few people think about the “personal” part explicitly anymore. Messaging and advertising will become “personal” in the future as well.

And of course there will be those that do it well, and those that do not.

So getting back to the original question – Can we get out of this mess? – the answer is yes, but it will take time. But for those of us who are at the forefront of this change, let’s see if we can’t make that change happen just a little bit faster and easier and ensure we don’t get emails that promise to help do things like  “Design a Monetization Strategy to Enhance Strategic Goals while Protecting Core Assets” any more.

Saeed

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