Apple’s Genius (What You Don’t See)

Posted on January 22, 2008

Now there's even more to touch. iPod touch.The tech world is abuzz with the lack-luster launch of the MacBook Air. The Apple fans were left open mouthed with an under whelming “huh?” that permeated the crowd. But wait, some missed the boat on this one – most did.

I postulate here, but I’ll ask that you consider these elements in the grander scheme that is Apple – a sustainable Apple.

On Approach

One can see that if Steve had continued to approach Microsoft head-on with applications and OS share they would be battling from a virtually unwinnable position. The great strategist that is Steve, saw the writing on the wall and built a framework of stellar devices around his company.

Legs To Stand On

Apple has four legs to their strategy: Mac OS, Mac Computers, iPhone / iPod and AppleTV. These four product categories cover the desktop, the living room and the personal entertainment category – Mac OS is pervasive throughout. Consumers have rewarded Apple for their investment in these categories and the market-share of each has shown strong growth numbers and potential.

Mac OS, The Unspoken Pervasion

Mac OS is a solid computing platform and as you can tell it is quite extensible. The extensibility is the key to the Job’s strategy. When Steve stood on stage and announced the $20 upgrade to the iPod Touch he tested the water. This small test in the mobile community gauged the willingness of the Apple consumer to pay for upgrades to the software without buying a new device.

One might argue that software purchase behavior need not be tested, but look at the portfolio of software Apple has been successful at selling – it isn’t vast. Inf act, the portfolio is quite niche’ and mostly aligned with the creative market the platform was initially marketed towards.

As a matter of fact, productivity tools like Office have always been left to Microsoft who continues to hold a massive leadership position in this category. I do not speculate that Apple will present an application suite as advanced as MS Office, but I do believe they will offer services similar to Yahoo’s weather and stock application. They will actively engage consumers in service type applications and partner with best-in-class providers like Google and Yahoo! when they have specific strengths. I say all this, but don’t expect free.

On the 8th Day He Gave Them Apps

As we approach the February launch of the iPhone SDK we can expect apps to come out of the woodwork. This will not be a shocker to anyone familiar with the space. But let’s talk a little about poaching. Apple will building slicker, smarter, more integrated applications that bear the Apple name and garner a higher price.

Apps like the Apple remote, installed on your iPhone or iPod Touch for a nominal $99. It’s a universal remote that controls your entertainment experience and of course your AppleTV. Buy a song, movie or rent a movie on your iPhone, wirelessly send it to your computer or AppleTV for the whole family to enjoy. Or buy it on your AppleTV and share alike. Either way the experience is simple and refreshing – no thinking!

When was the last time you bought a universal remote for $99? Would you? Most wouldn’t, but a iPhone or iPod Touch loyalist would – I would even after I forked out $200 for my Harmony Remote. It’s the Apple experience that lures me in.

Razor Reconciliation

As I reconcile the keynote the strategy to me is clear. Steve has more tricks up his sleeve this year. The hardware released may not have been earth-shattering, but think about it this way.

Steve Jobs invented the razor, now he’ll sell you the razor blades too.

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