“Although Jobs’ statement was as plain as vanilla, it was probably the most profound forecast of the year and deserves some analysis,” Schwarz writes. “When announcing that the App Store had surpassed 3 billion downloads, Jobs finished with his crystal ball prediction: ‘We see no signs of the competition catching up anytime soon.'”
“Unfortunately for Google, Microsoft, Dell, Palm, Research In Motion, or any other company that considers itself a threat to Apple, Jobs isn’t talking about features,” Schwarz writes. “If only it was that easy.”
Schwarz writes, “To compete with Apple, someone is going to have to scale a gated community. No one who lives in a great neighborhood wants to move. Would upgraded countertops be enough to get you to leave your great schools, parks and friends? For most people, once they find their ideal neighborhood, they never feel the need to leave… Apple customers feel the same way. The Apple community provides benefits beyond minor features of a single product. So what would a competitor have to do to disrupt this trend?”
1. Produce multiple products: Single product companies won’t be able to keep up with Apple. Ditching my iMac, my Macbook, my iTunes account, my iPod and my iPhone to switch over to RIM’s BlackBerry just because it has a 5-megapixel camera isn’t going to happen.
2. Earn brand trust: The latest release from Google should have been called the G2, but since the G1 was such a bomb that name can never be used again.
3. Produce multifunction devices: This is the reason why the Apple tablet device will take out Amazon’s Kindle.
MacDailyNews Take: One reason among many.
4. Combine seamless software (and software updates) with the hardware: If I bought a Palm Pre, I would be stuck without seamless integration to iTunes. If I bought a Motorola Droid, I would be stuck with the old version of Android while the Nexus One users get the upgrade.
5. Have multiple distribution channels: If you want to compete with the Apple community, you’ll need a strong physical retail presence as well as a strong online presence.
6. Turn a profit: Any business model that tries to compete with Apple must produce a profit… You can’t cheat to beat Apple, because at the end of the day, it’s all about making money.
Schwarz writes, “As you hear the media talk about tablets from Hewlett-Packard (HPQ Quote) or phones from Google, remember that these six elements must accompany these products in order for them to have lasting success. As for me, I’m teaming up with Jobs. My one prediction for 2010 is this: ‘I see no signs of the competition catching up anytime soon.'”
Read more in the full article – recommended – here.
