Wednesday, December 4, 2013

Apple's iPhone Strategy

If you reach into your pocket for your cell phone, chances are that it’s an iPhone.  Apple currently controls around 48% of the smart phone market.  They basically invented the modern mobile phone, as their design has become the standard look for all Internet enabled phones.  A few of us will remember cell phones before the iPhone.  Producers were experimenting with all sorts of designs, most notably Blackberry and Nokia.


Apple used a simple strategy for introducing and marketing their products.  According to Ewan Spence at Forbes.com there are nine lessons that companies can take from Apple’s recent strategy implementation.  These include:

1. Take Charge Of Your Destiny- Apply has worked to create a market for its products
2. Choose Your Strategy And Go All In- While other companies are trying to improve market share, Apple is focused on the variable costs of their headsets.  They control their supply chain and can get good profits on each of their products
3. If It Looks New, It Is New- Apples new products are hardly new.  Many of the same features and hardware is included in the latest version of the iPhone
4. Don’t Be A Makeweight, Make A Difference- When a new product is introduced, it should be a game changer
5. Tease The Latest Technology- if you have something new, market it before you release it.  This allows you to build hype and test the product
6. Delegate, Delegate, Delegate- Build a strong corporate culture and let the team do its job
7. Listen To All The Voices, Not Just The Loudest- Don’t do what the market expects all the time, and find the silent stakeholders
8. Promote Real World Issues, Not Numbers- Apple’s products focus on simplifying their users’ problems, not on being the most powerful
9. There is Nobody More Important Than The Customer- keep your consumer as your main focus.

These rules have been employed throughout the iPhone’s history.  For example, the idea that “There Is Nobody More Important Than The Customer” meant that Apple did not comprise its headset to fit the needs of the major cellphone carriers.  Instead they focused on the needs of the consumer, and as a result, their phones are more unique than any other manufacturer. 

The future of apple is still uncertain.  These rules have helped carve of a significant market share.  The “5c” was Apple’s highest grossing iPhone yet.  Its stock price is doing well, but is down from its 52 week high.  Samsung and Android are quickly rising in market share.  For now, it seems that Apple’s innovation has stalled.  Their next big product may be a “smart watch” but Samsung has beaten them to the market. 

Sources:
http://appleinsider.com/articles/13/09/09/smartphones-now-account-for-56-of-us-market-apples-iphone-at-25-share
http://www.forbes.com/sites/ewanspence/2013/09/14/nine-business-and-strategy-lessons-from-apple-and-the-iphone-5c-and-5s/2/














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