Apple grows their ecosystem – and their advantage

“Apple slipped off its high horse in 2015 and 2016, but has hopped back aboard and is now streaking at the front of the market,” Jon Markman writes for Forbes.This is not just about technicals or cheapness. The company has successfully rebuilt its business around grabbing your undivided attention.”

“Although the iPod and iTunes are emblematic of the transition to digitalization, for a long time investors feared Cupertino had lost its way. Alphabet, Amazon, Facebook and even Netflix all seemed to have better strategies in the new era of the cloud and streaming media,” Markman writes. “Yet it turns out Apple had a plan, too: Its ecosystem.”

“Now it is pressing that advantage in a big way – and it will lead to more iPhone, Watch, Macbook, accessory and subscription sales than ever,” Markman writes. “This is where the new cheaper iPad fits in.”

Read more in the full article here.

MacDailyNews Take: Yup.

iPads are too expensive relative to the perceived competition and Apple has obviously done a piss-poor job of marketing the iPad family (read: clearly explaining to the hoi polloi why they want an iPad over an Amazon or other Android tablet).

Sticker price is the biggest reason why iPad sales struggle to return to growth (the next biggest reason is that iPads’ useful lives last so damn long, they’re not rapidly replaced).

We would have purchased iPads for family members this year if they had been updated as they should have been for the holiday season and if the prices were a bit more palatable. Yes, we know what an iPad offers. Yes, we know they’re worth the money Apple’s asking for today; even being last year’s models. But, Apple should really do the math and consider making certain hardware more affordable in exchange for the backend revenue and increased mindshare and market share that will deliver.

For the same reason – mindshare – Apple should make their own Apple displays, even to the point of taking a loss of each and every one, so that other companies’ logos on frankly ugly products that do not match Apple design sensibilities are not in users’ faces all day long. That’s not a difficult concept to grasp; even an inveterate beancounter might be able to get it.

MacDailyNews, January 6, 2017

5 Comments

  1. One of the most puzzling moves with respect to the ecosystem is Apple’s giving up on the router business. IMO if Apple wants to own my home–and I would be pleased to give it a chance if only it would invest a little of its otherwise wasted capital on Home product development–it would gain a strategic advantage in hanging services and hardware off of a router.

    1. I agree completely. Every time I have a friend who is having problems with their ISP supplied or Wal-Mart purchased router, I recommend either an AirPort Extreme or Time Capsule. That solves the problem every time! So easy to set up and admin.

  2. Case in point. My son’s mother-in-law just told me she traded in her Android phone for her first iPhone because she wanted to be able to see the shared images of her new grandchild that are being passed around among the rest of the family on Photos, exclusive to iOS. The power of the ecosystem cannot be overstated.

  3. Another reason for them not to neglect the Mac – as it’s part of the lock-in, and if Macs become passe that’s part of the reason for being with Apple gone.

    Of course, I say that as mix and match ecosystem guy who hasn’t had great experiences with most of Apple’s pieces. I.e., I love my Mac (and hope they give me the upgrade path I want, ‘cos they haven’t yet), but am perfectly happy with cross-platform, always reliable, no lock-in Google Photos, Evernote, DropBox, Google Play Music (all those free uploads, and plenty of highly differentiated streams), plus Carbon Copy Cloner for local backups over Time Machine, and hate to admit it, but my Android Phone does everything I can imagine needing to do and well at that…..

    ….but just chiming in that for those happy in the Apple sandbox, the Mac needs continuing love.

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