Recently the number of Apple/Macintosh/OS X/iPod deathwatch articles has been decreasing (although they are still in evidence). Many of the pundits have focused on Apple's needs to drop margins as competition heats up ...
That may be, but what is missed is that Apple isn't a pure computer company and it isn't a consumer electronics company. It isn't a blend of the two - rather it is more focused on user experience and there is little serious competition in that area.
There is still a long way for any company to go down the user experience road, but Apple seems to be more focused. Building the capability within a company is one thing, actually executing on it is much more difficult.
People also overlook what the Apple Stores represent. The idea that someone can get free help and advice and be presented with a carefully selected set of product is something lost on much of retail. Shopping for a Mercedes or Brooks Brothers suit is very different from the standard retail experience. Of course these are luxuries not available to everyone, but Apple is working in the area of affordable luxury. The percentage of the population that can drop $300 on an iPod or $1300 on an iMac is larger than those who can entertain $70,000 cars and $1000 suits.
Macs may be more expensive than most Windows computers, but having something with style, integration and a relative freedom from problems of the Windows world are features that are well worth the money to many people. A majority of the population will buy on price and inertia alone, but if ten percent of the market can be convinced that Apple is a superior value, the company will grow explosively. And as many have pointed out, there are more than a few areas in consumer electronics that are encrusted with byzantine design.
Apple's secret sauce is hardly a secret, but its implementation and execution by the competition is sufficiently difficult that I don't have any short term worries about the company.
There is, of course, a long term worry about the continued focus of the company. Can Apple do this for another 10 years? What is the period where other companies can figure out what design is? Sony once was a design company, but never made the transition to understanding how to integrate design, software, hardware and good user experience. There are many opportunities to be found - mobile phones and digital cameras are good places to begin and then there is the remote control.
In any event - with the results of Apple's last quarter being digested by Wall Street (after hours trading gives aapl a market cap of over $70 billion) - more than a few CEOs will be thinking about what they should be doing. I wonder if the readership of I.D. Magazine has increased?
you are so right about products not being designed well. there are going to be two types of outlets in the future: really cheap walmarts that mostly sell garbage and places that cater to consumers who care. i don't think you are going to see much in between.
Posted by: sara | January 11, 2006 at 14:09