Jan
15
Apple 2008 Keynote Business Lessons
January 15, 2008 |
So, this year’s Apple keynote left much to be desired, but at least there were some very cool/interesting business points made. The keynote can be viewed on Apple’s website, or here, and instead of talking more about Apple, I’ll dive straight into my observations…
1. Make the Pie Bigger
Apple has recently sold 5,000,000 iPhones, and comprises 20% of the smartphone market. While some may argue that people have switched from one smartphone to another, I am very adamant that people have upgraded from a regular phone to a smartphone, and instead of competition amongst a small segment of cellphone users (the business market), they have tapped into the general cellphone market and moved them up by adding benefits that a non-business user would enjoy.
2. People Don’t Want to Pay for Software Updates
The iPod Touch has a $20 software update that adds applications that are currently available for free on the iPhone. Because the platform is essentially the same and iPhone users received them for free (and it includes simple applications like Notes), it is easy to see why there was a very lukewarm reply to this announcement. While I personally feel that many people will not pay for the update, we’ll see what ends up happening.
3. Listen to Your Customers
Apple finally admits the first Apple TV was a flop. A complete and utter flop. There reason why is because customers want three things on their television - movies, movies, movies. Not only has Apple made movies available, but also they are easy to get and watch. And because the rentals are either $3 or $4 depending on new release or not, it is affordable for everyone. Because they are listening to their customers and making it as easy as possible, this go-around is definitely going to be more successful than the previous one.
4. Keep It Simple-Stupid
I’m a little torn on the Macbook Air. I think there is a lot of really cool/innovative stuff that it provides, but there are a lot of questions of practicality/usability. I think the full size screen and keyboard is a plus, and having a flash hard drive that is noticeably faster (even though it’s expensive) adds a lot of advantage to those looking for it. The lack of an optical drive is a bit of an issue, but the workaround is somewhat decent (utilizing a nearby computer’s optical drive.) The problem I see, though, is that it sounds like a similar issue to the Apple TV and not listening to its customers and providing a super-easy workaround. A lot of talk has been made on other blogs about utilizing iTunes for software downloads and if that was done, then I would call that aspect a winner. Overall, for a computer that is super-light and easy to use, I think this computer will be a good seller, but not a rockstar, because everything isn’t as simple as it could be.
5. Don’t be Good, be Great
When Apple does something, it usually doesn’t shoot for being just good - it wants to be the absolute best. It’s user interface isn’t just good, it’s the best on the market. Another way it is establishing it’s great reputation is through iTunes and the services offered. Getting the major music labels to join iTunes took a lot of work, but in the end everyone can see it has been a major success. Now, when it comes to making the service better, they are expanding into the movie market. And Apple didn’t just shoot for one or two major movie labels, they shot for the whole group. A good success would have occurred if most of them joined, but it’s a great success that all of them joined before a single movie was even available. Don’t get me wrong though, Apple does make some mistakes and isn’t great all the time, but their mentality of shooting for the best more often than not has led to HUGE successes for the company starting with the iPod’s initial release.
6. Being Environmentally Conscientious is Good for Business
Seemingly after listening to customer/organization’s complaints, Apple has decided to talk about their environmental initiatives. Two key developments are the elimination of bromine from circuit board laminates and mercury from LED backlit displays. Organizations like Greenpeace have been on Apple’s case for years about these issues, and finally doing something about it (or at least talking about it) I think will prove to be a strategic advantage for Apple.
Conclusion
There are a lot of cool things that have happened this past year in regards to Apple, and the future looks interesting, but only time will tell how things shape up. As for business lessons, it is quite obvious that Apple is doing something right, and the points highlighted above are some of the most critical to its continual success.