If there is one thing Apple has been phenomenal at over the at last 3 to 4 years it has been anticipating the needs of the average consumer before they really understand that the need exists. Much like Starbucks did with a premium coffee experience, Apple has been able to take a market that was in a race to the bottom and instead of purely going for the lowest price of entry they decided to change the way we use technology through out our daily lives.
This is more significant than it first appears because what Apple is really doing here is catering to the human emotional needs of computing, and not purely the functional need and for technology that completely changes everything. By having such a strong push and obsession around content, experience and quality they are simultaneously hitting consumers from directions they didn’t even know existed. These emotional pulls not only help Apple sell impressive units at even more impressive margins, but they have raised the bar for consumer expectations to mind boggling heights. Have you seen the wireless data consumption of AT&T? 4932% growth over 12 quarters! That is INSANE for a company that was the largest wireless carrier during part of that time (however is currently eclipsed by Verzion due to VW’s aggressive acquisitions).
The same kind of massive shift in the way consumer interact with their devices, and additionally what they have come to expect from them was seen in the portable music player category which seemed to have the secret sauce for an ecosystem that generated a better, and more reliable experience than what users had at their disposal before. iPod + iTunes has certainly proved to be a winning combination that is still paying off to this day, granted through a much more expanded form than what was originally conceptualized I am sure.
So what’s next?
Steve Jobs has described the iPad as possibly being the “most important thing [he] has ever worked on”. Bold words coming from a man who has had a fair hand in turning the music industry upside down, but what makes this device so important to the Apple lineup and how will it shift the way we expect our devices to perform for us?
Near 100% reliability
While many would argue that devices with offerings such as Android provide a ‘superior’ experience because of their limitless functions and features that can be added at any point (Flash anyone?). However, while competition is fantastic and I strongly believe that every market segment needs bold innovation to push the boundaries in order to understand what works, for mass adoption to take place the devices need to provide a stable foundation that users can depend on to carry out their tasks. If this element is missing, all of the emotional bonuses that come along with the Apple ecosystem are quickly discounted.
Masked price point
This one is kind of tricky with Apple, especially for those who are not drinking the Kool aid because there is most certainly an upfront premium that has been put on Apple products and the accompanying culture, buying habits etc that come with living in an Apple/Mac world. What IS interesting however is how Apple has clearly hinted at the iPad as a “sign of things to come” (Jonathan Ive) and while at first this devices seems like an over-sized iPod Touch; it is really going after the entry computing market. Think about the type of accessories and ways that a user can interact with this device, consider its price point and then think about what kind of computing experience you can get elsewhere for the same dollar.
For $500-900 can you get an industry best (IPS) display? Multitouch? 10 hour batter life? What about a seamless experience between the content you truly care about and the ability to quickly access information that you need? The Google Chrome OS will be a very interesting challenger to this type of experience game changer but until they are both out in their second generation, it is anybodies guess.
Dead simple usability
One thing I always found interesting as I went through High School and I am not finishing up College throughout the “iPod Generation” is the big draw that people had through word of mouth marketing, and the perceived ease of use. One of the people that I really look up to is Gary Vaynerchuk due to his ability to capture the essence of what is driving the market and understand that the key fundamentals haven’t really changed, only the delivery. People were buying iPods for two very simple reasons.
1. They were extremely good at doing what they were built to do
2. Everybody else had them, so everyone already KNEW how to use it
When you combing those two factors you have a potent recipe for buying decisions to stem directly from word of mouth marketing, where even better yet prospective buyers were able to hold a “sample” product in their hands and experience the ecosystem before buying. The trial-ability for the Apple brand, ecosystem and value proposition was phenomenal.
Developer community
This is a huge competitive advantage that Apple has with their ecosystem right now, and ironically is something they were openly against at first and ever since opening up their doors they have been slammed ever harder for not being more open (regardless of the fact that being at least semi closed is what makes the user experience so amazing). What Apple really gets at this point though is that by taking an agency approach to 3rd party software development with a 30% cut from all App sales they are directly profiting off of the innovation, marketing and value that their community is coming up with.
This last part is what I really want to drive home as to why I am bullish on these entire product line and ecosystem: Apple is no longer in the passenger seat when it comes to understanding the pulse of the consumer and even being a few steps ahead. It took them a few hard punches in the early rounds of computing to polish what they have wanted to perfect all along; content and the user experience. With the introduction of the iPad and the realization that Apple is now a “mobile company”, the firm is very much firing on all cylinders regardless of what type of traction this first generation iPad produces.
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