In 1984, Apple, which had already been making computers since 1977, introduced the Macintosh. The ease of use and all-in-one form factor changed the computing industry, although the ‘real’ computer users scoffed. That said, the Mac didn’t really take off until the Desktop Publishing revolution happened a couple of years later.
In 2001, Apple introduced the iPod and dramatically revolutionised portable music. The hegemony of the iPod was only really broken by smartphones, which gradually became everyone’s default music vessels.
In 2007, Apple introduced the iPhone, which kicked off the smartphone revolution. Steve Jobs, in his announcement, hoped for just one percent of the worldwide mobile phone market share! That would have been 10 million phones in 2008. Apple sold 4.7 million iPhones in the first three months, but the first Android phones came out in November 2008, which has remained the only real competitor. In 2010, Jobs met with Google exec Eric Schmidt and threatened him over copying features for Android… Schmidt had been on Apple’s board.
Android had 43% of the smartphone market by mid 2011. Android’s share is now dominant, largely due to lower-price models, but it’s unlikely Apple will reduce prices since it’s just not the way the Inc works.
But this year, Apple releases it’s tenth anniversary model (nominally, iPhone 8) and already pundits reckon it will cost over US$1000 (about NZ$1400). This is really steep when you can get capable smartphones for a couple of hundred these days, so Apple had better make something pretty compelling for that price. NZ$1400 makes me quail, frankly, and I need a new iPhone this year.
Apple is a very different company in 2017. iPhone changed everything after it was introduced in ’07, including Apple revenue which is now dramatically in the iPhone camp, but Apple was ‘like the wild west‘ ten years ago compared to its rigid structures and hierarchies in ’17. Back then, things were hard to control, but it also meant potentially crazy ideas could sometimes flourish.
Former Apple engineer Bob Burrough reckons Tim Cook has tried to eliminate executive conflict within Apple and grow middle management — but so doing, has crippled the Mac maker’s old spirit.
There does appear to be a lack of cohesion; Jobs’ megalomaniac vision certainly managed to focus things. Chinese telephonics and networking giant Hawaii reckons it can overtake Apple in 2018. Apple has some work to do, for sure. But on price? The cheapest iPhone Apple sells is the US$400 iPhone SE. Huawei’s least expensive smartphone retails for about US$50. Flooding the market with cheap always works, of course, but great is still great.
iPhone 8 needs to be really great.