Apple Pay & Apple Watch is the new kid on the block but the worrying agenda to other kids is that Apple has revolutionized every block it has been to in the last few decades. They took their sweet time to enter both of these industries.
Apple didn’t build the first smart phone, the first MP3 player or tablet, the first music selling platform & Steve Jobs didn’t build the first computer but he did release the Mac, iPod, iPad, iPhone & iTunes and the rest is history.
Apple has repeatedly proven to the world that the first mover(s) in the industry is not the winner. Apple stays back, studies industry, ‘thinks different’ and then penetrates the market.
Everybody especially Wall Street is very excited about Apple’s new releases. On a related note eBay took a hit on their stock the day after Apple Pay was announced.
Innovation is not the only factor that puts Apple at the top, it’s also timing.
Slowed Innovation in Industry
Apple’s innovation is obvious and there is no argument there but Apple often hits the market when innovation has often slowed down in the industry. Slow incremental innovations exist but no disruptive technologies in the works. Apple swoops in with their product and gain market share
Walter Robb, CEO of Whole Foods Market, said that the NFC reader is already present in all the stores and they are just waiting on Apple Pay to launch. Google Wallet, Paypal, Softcard, Square and all the others in the industry have allowed the industry to build an infrastructure in over 220,000 stores around the country. Apple doesn’t have to wait for it to get to the stores.
Technology Inadequacy in Market
Any technology industry has shortcomings. Usual ones are bugs, lack of flexibility, less user friendly at times, the list is long. With Apple Pay, it has worked on a similar but unique architecture to secure its users’ cards and it has made it even easier to pay the bills.
Apple is often criticized for excess control over products through their software but this also allows them to move quickly when there are issues. Problems are fixed and security is higher.
Enthusiastic App Developers
They move as quick as Apple does when it comes to product releases. They often profit well from their efforts. This allows bug fixes, updates, new apps to release soon after a product or software release.
The consumers are aware of the industry, basic working of the technology, its issues & benefits. It makes it easier to improve market share and market size quickly. Consumers react quickly to buy their products
Apple enters when industry growth rate levels out. For example, NFC payment has failed to catch on as the industry expected the market to do so. Fear of theft of data and other security issues have kept most users at bay. Apple Pay will boost consumer confidence and now, payment industry will grow in size again.
Robust Supply Chain
Apple’s supply chain is one of the best in the world allowing millions of devices to be sold around the world in a matter of months. They reach the market while they are still talking about it. The No gaps there.
They have designed the software to communicate with all Apple devices and they keep improving it with each update. One Apple connects to all Apple. People are comfortable and they have a desire to buy another Apple product.
Apple can afford to name their price. Their Innovation & production costs allow them to do so.They can also afford to charge higher for premium products like Macbook Pro and iPad. They can bring down the prices for iPhone and iPod.
Loyal Fan Base
It helps when you are popular. They switch to new products and convert others.
Innovation alone isn’t the only success factor. It proves how every department within Apple works in sync to ensure their success. Their mission is aligned.
Author: Sunil Thomas