Apple Outperforms All Its Competitors – What’s The Secret?
Apple Outperforms All Its Competitors – What’s The Secret?
When Apple launched iPhone in 2007, it came up with an all new Smartphone design. But the real magic behind the iPhone was its software. The iPhone, when turned off hardly had any value. However, once turned on, it was an entirely different device with outstanding OS and apps. Even though it was a Smartphone, the OS gave it much more than just the smartphone functions.
The iPhone had iTunes and could be transformed into an iPod which was yet another major component which made it special. It was basically a multi-purpose device which could make calls, was loaded with apps and could act as an iPod as well. This made it a complete mobile entertainment system.
After the launch of iPhone, Apple came up with a powerful SDK for software developers to create a range of apps which gave real value to the iPhone. With the help of this great SDK, developers have successfully created more than 250,000 iOS apps. Apple also offers iTunes services which are most sorted after.
Apple has given more importance to the software rather than hardware of its iDevices and software is actually the thing that always keeps Apple ahead of its competitors. Apple creates great hardware as well. The sleek design of iPad2 is brilliant and the iPhone also has an amazing design. However, hardware can easily be copied. A lot of recently released Smartphone models are iPhone look-alike.
Competitors have been able to compete with Apple only in hardware. However, it’s the perfect combination of hardware (specially designed to match the software) and software that makes Apple unique. The main weapon that Apple uses against its competitors is its extended software and services.
Apple is in a process of creating data center at North Carolina and this move is expected to further widen the gap between Apple and its competitors. It is believed that apart from just running music service, Apple would be looking to offer a new “video on demand” service.
Apple has been offering Netflix on Apple TV and would be thinking of creating a streaming video service of a similar kind. Apple must be getting in touch with major movie and TV studios for locking up different kinds of video content. No one would be surprised if Apple starts giving tough competition to cable companies that are also in a race for delivering better demand content.
Apple would be certainly looking to deliver this service on all its iDevices including iPhone, iPod and iPad as well as on Apple TV. Though Netflix does this job pretty well at present, there are some limitations. Netflix is unable to gain access for steaming first run movies. However, with this “video on demand” service, Apple is expected to offer such types of movies too.
Apple would thus offer an established base of more than 150 million devices to the studios. It is likely to take only 30% of the profit and give the bigger chunk to the studios. By selling devices with amazing apps and services, Apple drives a huge volume which helps it maintain its margins higher than 30%. In contrast to this, its competitors are able to get hardly 10% margins.
The perfect blend of software, hardware and services is the key that gives Apple an upper edge over its competitors. However, a few competitors including Amazon and Google have been trying hard to come up with better services which could compete with Apple’s offerings. As far as Amazon is concerned, it has no control over hardware designs to make sure that the hardware ideally suits its services.
Google follows an open market approach which leads to the hardware design going beyond Android specs. That’s the reason why Google is still not able to design one single UI for all Android devices. Apple has been very innovative in terms of both, software and hardware. By the time a competitor even thinks of coming up with something to compete with Apple’s release, Apple has something fresh to offer.
This cat and mouse race has been going on for quite some time now but Apple’s business model clearly shows how competitors are going to find it difficult to compete with Apple in days to come.
Related posts:
- Difference Between SnapDragon And Apple iPhone 4
- AirPLay Video Streaming For Safari, Photo Apps And Many More In 2011 for Apple
- New Google Earth For Apple Products With Retina Display
- Stream MKV And AVI Format Via Your iPad or iPhone To Apple TV
- Control iTunes, Apple TV Using Remote Application On Your iPhone Or iPad