I was thinking back to my original list of features for the iPad, iPad Score Card. A few things
Apple missed back then were finally added with the iPad 2.
The iPad 2 comes in black or white.
We didn't get a mini DisplayPort, but we did get a video out
adapter. We got the video camera and a dual-core processor that beats a
single-core. Additionally, it is thinner, we likely have OpenGL
support, iMovie, FaceTime, new covers, and it comes in white.
This incremental approach got me thinking about the whole Apple
business model. The new FaceTime app came from development of the
iPhone 4. The A5 processor in the iPad 2 will probably be used on the
upcoming iPhone 5 (and probably the 5G iPod touch as well).
The addition of OpenCL may not be ready, but other technology from
Mac OS X will get added in the next round of iOS. And we've
already heard that features from iOS 4 are getting moved to Mac
OS X 10.7 Lion.
Innovation: Getting There First
This constant movement of features, design, and technology that is
going from one product line to the next is a constant bite against the
competition, keeping them from getting an advantage over Apple. For
each of these small details, Apple gets there first and leads the
adoption of the design.
To show how Apple leads technology adoption, just look at the
iPhone. How many touchscreen-only phones were around before the iPhone?
None. Now how many Android, Blackberry, and Window 7 phones heavily
imitate the iPhone? Tons.
Sometimes Apple's early lead keeps it ahead of everyone else. How
many laptops come with all aluminum cases? A few. How many are built
from single blocks of aluminum that were milled to size? Only
Apple's.
How many smartphones have app stores? Many. How many app stores are
as big as Apple's? None.
The Upgrade Cycle
These spikes in design and innovation are like teeth on the serrated
edge of a knife tearing into the market and easily carving away market
share for Apple. Put these same innovations on top of the annual
product cycle, and the simple knife become a spinning saw blade that is
self-sharpening each time it goes around. Each cycle, Apple sharpens
the bite on their products using innovations from the previous product
line updated.
The self-sharpening nature of Apple's product development cycle
makes it a tough company to get ahead of. Even if you briefly win on
features, in three to six months Apple will be rolling out new features
on a product you don't make and later integrating these designs into
its other products using months of market experience - months of
experience you didn't get, because you don't operate in all the markets
that Apple does. Then Apple uses these features from this other market
to destroy you on the next product cycle refresh.
Apple gets the tech world to help with this strategy. If you can get
Apple to use your new widgets, service, or design, you are almost
guaranteed that everyone will be screaming to use it for their device
as soon as possible! Look at Intel working with Apple on processor
design or turning Light Peak into Thunderbolt.
Follow the Leader
Watch the stock market price on some company go up after landing a
contract with Apple. Where Apple goes, the market often follows.
If you wonder why the stock market isn't punishing Apple stock while
Steve Jobs is on medical leave, this is the answer. Apple has become a
spinning blade that shows no signs of going dull, and by design it is
keeping its edges sharpened every year. Apple is simply too frightening
a company to write off.
Next time you see a big headline touting how Android tablets will
challenge the iPad, ask yourself who has the advantage in the long run?
Where is Google going to take design improvements - from its search
business or web application business - and roll out a better product
than Apple will be making six months from now?
Most of what Google does is match Apple or make tweaks to other
existing designs. Google is a fast follower; it is not a leader, and it
doesn't have the product depth that Apple is bringing to the fight.
Controlling the Game
One other hidden advantage for Apple - as if it didn't have enough -
is that by limiting how many new features are added, it controls costs.
This is a double benefit. First is the cost savings by sticking with
existing ideas but refining production costs (e.g., few parts, simpler
assembly, and dedicated production lines). Second, it increases Apple's
buying power with known components and suppliers.
It would take an incredible amount of mismanagement for Apple to
loose its long-term advantage, or technological innovation as large as
the Internet to leapfrog Apple's future plans.
Wishful thinking by anti-Apple people isn't going to change that.
