Apple updated its iOS
with latest version. For most of the world, it was a normal release and
expectation is that competitors will catch up sooner than later. Android already has biggest market share and
Windows phone is increasing its share. So what’s new in this release and how it
changed the game? Apple altered the game many ways this time but I am
presenting just 3 most important strategic moves by Apple leadership:
1.
Increased the barrier of
entry in premium segment & opened new market for tracking applications
Apple launched M7 processor to process
signals from motion sensors and other continual tasks which require less but
continuous processing. Given that M7 requires less power and will help users in
tasks that users value. Now, as we are becoming tracking freaks, iOS devices
will become main target for such kind of application. By the time other
developers will catch, Apple will have great applications to provide value to
customers.
TouchID launched by Apple has just one
purpose right now – work as password for lock screen and App store. It seems
a trivial and not so big of an innovation. Think deeply… is it so simple… No
obviously not… Apple has achieved what others failed to achieve… It is a small
& first step towards a password free word. Again Apple being the first
mover has the opportunity of becoming first password free and most secure
platform.
No other platform will be able to provide
these market-changing features.
For
curious souls:
2.
iOs is a computing
platform transformed into a smart human friend
Apple launched iOS7 by boasting flat
design. World went gaga about flat design and ignored the other life changing
experiences brought by Apple. For customers,
it hardly matters what design principles a platform follows. By moving to flat
design, Apple moved to a more human experience and its visible everywhere in iOS
: in Siri, in folders, in mail, in contact… Now Siri gives a human response to
a query. Notification centers tell me how my day is going to be… what are my
important tasks and events. I can access all these without even unlocking the
phone. Now I don’t need to unlock to find out when is my meeting.
iPhone is no longer a phone, it became a
personal assistant and companion. No platform can match this experience in
recent future as other platforms have users divided in so many segments. These
segments have slow learners and fast learners where as Apple has just fast
leaners. By bringing drastic changes, Apple put forward a strategic dilemma to
Android. Which direction should Android take now? Should it copy Apple strategy
and make Android’s future uncertain or enjoy today’s success to jeopardize Android’s
future?
For
curious souls:
3.
Low cost production
model
Apple didn’t reduce price of iPhone. Why?
Because Apple is not able to meet the demand. Last quarter Apple sold 37.5
million iPhones and total revenue earned by iPhone was more than the revenue of
microsoft. If Apple is not able to meet
the demand why it should reduce the price.
Apple needed two steps to reach wider
audience. First, Apple needed to have production process, which can scale fast
and ensure high quality product. Secondly, Apple needed to reduce cost to reach
other segments. By launching plastic
body phone Apple achieved both.
Nokia and Samsung already have plastic
phones… then why it is a strategic move? Apple was never in plastic and neither
Apple is launching cheap plastic. Apple was in premium segment and hence it had
a chance to move towards lower segments by reducing cost. Plastic iPhone allows Apple to achieve both of its goals. As Samsung and Nokia are already in plastic
and that too in cheap plastic, they have no option to increase their reach or
profitability.
Over all I believe Apple’s launch of 5s
& 5c is not an annual ritual of incremental change but a disruptive
strategic move.
For
curious souls:
