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Everybody loves a good comeback story. It’s for that reason films like Rocky and The Mighty Ducks waltz into film halls of fame, even if, speaking in film terms, they aren’t amazing achievements. In many ways this is why the world has been so obsessed – yes, it’s an obsession – with Apple for a little over a decade. The company was teetering on the brink of collapse, with no reprieve in sight.
The return of Jobs
The co-founder Steve Jobs came back, made a few key hires, developed a few key products, sold them by the bucket load, and suddenly the company is the big bad bully, and not the spunky comeback kid it once was. Regardless of how you feel about the company, analysts, investors, academics, and competitors world over have been trying their best to figure out what gives Apple the edge. Below is a collection of the thoughts expressed over the years by these folks on the source of the Apple advantage.
Reason 1: Relentless focus on design
Whether you love Apple’s design style or not, it is undoubted that they’ve had a lasting impact on the designs of other companies competing in their space, and it is a key Apple advantage. Off the back of a then young and promising industrial designer, Jonathan Ive, the iconic iMac was the company’s first major product release since Jobs’ return. The various changes to the Macbook laptop line since have had a huge impact on how laptop computers are made and look.
The iPod quickly emerged to the top of the mobile music player pile because, in short, it looked and worked better than anything else in the market prior and, arguably, after, too. Others tried their best to replicate, but to little avail.
However, in no two places are Apple’s design influence more notable than with the company’s last two major products – the iPhone and the iPad. Many remember Steve Jobs slating the ‘lower 40 per cent’ of button-intensive phones when he first announced the button-free-touchscreen-only iPhone in 2007. Now most every smartphone in the world is a riff on that, which is an obvious Apple advantage. And the same applies to the iPad.
Reason 2: Industry re-defining products
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While Apple is lauded for being extremely innovative, detractors are quick to point out that the company actually doesn’t invent so much as opposed to rethink what others did first. Which, to be fair, is exactly what Apple does, but it’s in that reimagining where the Apple advantage is most prevalent.
There were many mp3 players prior to the iPod, but they varied dramatically in usability and design. Enter the iPod with its easy-to-understand click wheel and in its iconic white with its iconic white earphones. In that product category the rest is history.
There were many smartphones prior to the iPhone – and many of them were, at the time, brilliant handsets.
Bill Gates was championing tablet PCs at the very beginning of the 21st century. He saw then what many are only seeing now, describing the many great uses developers would come up with for these interfaces. Most of those tablets back then were too bulky, with terrible battery life and stylus-dependent unresponsive touchscreen. Enter Apple, with the iPad, which, for all intents, was a giant iPhone, with long battery life, wi-fi and 3G connectivity, and access to Apple’s very impressive app store. Industry redefines.
Reason 3: Pricing trickery
Over the last decade Apple has done three things really well when it comes to how they price their products. Firstly, the company positioned itself as a premium brand, and so charged premium prices.
Next, within product categories, Apple’s pricing tiers have been cleverly designed so as to attract customers to the most expensive item in the lineup.
Finally, Apple has also become the biggest global customer of certain components, most notably flash memory, allowing them to make products at a lower cost than other companies. This actually goes against their traditional ‘premium pricing model’ and allows them to price products at a bar so low, that competitors struggle to keep up. As unintuitive as that sounds, John Gruber sums it brilliantly in this Daring Fireball post.
Now, imagine competing with a media darling that has industry leading designers heading it up, a robust think tank that doesn’t so much invent new products as opposed to significantly improving over other products, and now you can’t even compete on price. Yep, that’s the reality all of Apple’s competitors are facing.
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