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That is also why recent analyst data that suggests that the i Pad is “cannibalizing” low-end Mac Book sales — versus simply swallowing the low-end Windows PC and netbook segments for lunch — is dubious at best.If you own an i Pad and a Mac, you know two things: But then again, as I’ve stated before, Apple is a rare bird, pursuing non-linear, high-orchestration, high-leverage strategies.
In the harmonious bucket is the way that i OS-based Apps and their corresponding “ecosystem surround” directly overlay on top of i Tunes and the i Pod media player.(For a historical perspective on tech industry architectural orientation, check out “Waves of Power” by David Moschella.) The following inconvenient facts must be an affront to the horizontal, commoditized, open, market share zealots.Apple has launched three major new product lines since 2001: the i Pod (October, 2001); the i Phone (July, 2007); and the i Pad (April, 2010).Moreover, it underscores the integral-ness of continuously re-calibrating on the definition of the situation; not merely doing more for the sake of an added bullet point or to support a desired price point.Does Apple have a perfect crystal ball on these things?In this regard, Apple’s product strategy is a study in market segmentation.
Versus merely trying to stuff a product, burrito-style, with as many different features as possible, they target specific user experiences, and build the product around that accordingly.
Therein, lies the problem with conventional wisdom. It doesn’t think outside the box in terms of strategic imperatives, like building differentiation, growing margins or defensibility.
That explains why the top three mobile handset unit sales ‘leaders’ (Nokia, Samsung, LG) are outselling Apple in raw units an astounding 23.5 to 1, yet for all of that effort, combined they are garnering only 82 percent of Apple’s profit level.
There is a myth, more of a meme actually, about the ‘inevitability’ of commoditization.
It is a view of the world that sees things linearly, in terms of singularities, and the so-called “one right path.” In this realm, where commoditization is God, horizontal orientation (versus vertical integration) rules the roost.
Yet, this composite translates to 29 percent of all users (according to Pew Research Center).