Posts tagged as:

Apple

If you can’t sue your partner, who can you sue

by nick on March 22, 2012

Apple v SamsungThere’s no question that many supply chains are shrinking as manufacturers can become retailers, and retailers can increasingly become manufacturers.

Plenty of retail sectors are feeling these waves in their ponds. It strikes me that cross-pollinating, and horizontal and vertical integration sound wonderfully simple growth strategies on paper, but in reality they involve emotion, history and entrenchment.

The established practices and incumbents are going to feel pain. It’s going to cause conflict as the status quo flexes. These can have an impact on your business and industry for years to come.

Distributors, the traditional middlemen who import brands and then sell from within their geographies, are extending arms to either side of the isle. In a case of striking first, they find themselves fearful that the brands they’ve nurtured through adolescence might well cut them out of the loop and run a B2C direct model, so they look to counter that risk and start their own product or run rebadged white label stuff.

As such, the simplicity of integration is putting a dampener on the overused business term of ‘partnership.’

Take the Apple-Samsung example. Samsung are a manufacturer, making components for many tech brands we love, as well as selling their own kit B2C. Apple is suing them (constantly it seems) for patent infringement of both design and UX.

While they’re slugging things out in court for some very big decisions, Apple are investing in Samsung’s chip-making plant in Texas.

These ‘partners’ and many others in the tech world will be friendly suing one another for decades.

Image credit here.

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Is the web becoming a funnel?

by nick on November 6, 2011

The modern business model from Silicon Valley is build. Don’t just make a computer, make digital products (as Steve Jobs said by launching a music player, then a music store, then a phone). Build and build again is what the dominant players are showing us to be the winning formula.

Google was just a search engine, Apple was just about consumer electronics, Amazon was just a bookstore and Facebook was just a social network. No more.

These four colossal companies all appear to want to channel us down their particular funnels and have you ride their own track as you consume all things digital. To paraphrase the eloquent John Battelle, Google used to equal search, now they equal Chrome, YouTube, Android, Docs, Gmail, Maps, Places, Voices, self-driving cars, energy research, Adwords, Google+ and Motorola. And let’s not forget possibly their biggest opportunity for a true golden goose: Google TV.

This Fab Four will make the scale of Murdoch’s empire look about as impressive as a Lego village. Their dominance of technology, media and data over our lives will be insurmountable. Google is expected to bring in more than $30 billion this year. Analysts expect Amazon to reach $100 billion in revenue by 2015, faster than any other company. You need to stand up when you hear Apple’s annual growth numbers: net profit up 85% to $25.9 billion (£16.5 billion). In just Q3 of this year (obviously not their largest without Christmas sales), Apple turned over $28,571,000,000*. Read that number again – it’s genuinely staggering. They sold over 17 million iPhones in their financial Q4!

Such is the significance of the Fab Four, that we barely even think of Microsoft in the same vein. Arguably the largest of them all and the business choice of the world, Microsoft simply isn’t in the running for our hearts and minds like these guys are. They’re in their own cold war with each other, leveraging the juxtaposition of the web in that the low barrier of entry shouldn’t allow such monopolistic companies to exist. Yet again, what shouldn’t be possible, actually proves true online.

Each of the Fab Four want to build an ecosystem. Think about smartphones, tablets, apps, cloud storage, social networking, gaming, music, TV, or movies and all fit into their strategic map of web’s future – their own corner of the web.

I can’t help but think this is taking the open web and making silos for the user. Amazons new tablet, the Fire, doesn’t like you to browse around the web too easily, but if you want to download a movie from Amazon or buy shoes from their marketplace, then that’ll be a piece of cake.

There’s an element of lock in. I don’t necessarily mind that it’ll be a bit stifling, but the decision you make with your hardware may well dictate how easily you can consume software and content in the future.

It’s a bit like choosing to buy a car having the knowledge of exactly where and how you’ll drive it in the future. Suddenly what you buy becomes far more than we’ve traditionally dealt with when buying a laptop or a PC i.e. size, speed and storage.

It’s like buying a new BMW. Not happy just with selling you the metal, plastic and rubber, BMW build a bunch of roads and would very much prefer it if you drove only on them. And they’d like you to use their fuel stations as they’ll hook up with your car far easier than any other (perhaps auto payments through number plate recognition). And BMW have plans afoot to offer you destinations too that will stop you going to the beach or Center Parcs or the shopping centre – the BMW equivalent will be better, more secure and more ‘holistic’ to your vehicle.

It’s hugely exciting to see these guys slug it out on the global scale and change our lives through innovation. It’s a shame none of them are British. Who are you backing to be the winner or can they coexist?

*The numbers and much of the facts came from an excellent post by Farhad Manjoo.

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A fitting tribute

by nick on October 6, 2011

It’s easy to gush more wonderful adulation to Steve Jobs, but there’s a far better tribute to be made: start something.

A friend said tonight that it’d been a moving day. But he was also inspired when he thought of Jobs and the founding of Apple and Pixar. So inspired in fact that he registered two companies that he and his team had been talking about for months. These companies will move from mothballed thoughts to job-creating realism.

This is what our dire economy needs: innovation, inspiration and action (and perhaps that £75 billion in Q.E.).

Thanks for the virtuoso performance, Steve.

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Tablets to take over

by nick on June 1, 2011

The tablet isn’t a new invention but the iPad has created a phenomenally popular category that was a non-starter before Apple invested. A recent study by Google’s Admob services indicates tablet owners generally use them for more than an hour a day, usually at evenings. GQ editor, Dominic West, wrote in July’s magazine, “We’ve been unable to resist the allure of the iPad because we have immediately formed a genuine bond with it. We just like it.” Even the Queen reportedly ordered one via younger family members.

I’m not hugely impressed by the hardware myself, although I do love its portability and the awe-inspiring battery life compared to my heavy MacBook Pro . But what’s simply staggering to see is others (especially non-techies) interacting with it. They’re utterly engrossed as soon as they hold it. That first two-minute fix on an iPad is similar to watching someone holding a newborn family member for the first time: captivating.

It’s a stroke of marketing genius by Apple to include Photo Booth, a small photo editing package that lets users manipulate the camera’s image before taking the picture (usually of themselves). It’s so intuitive my two-year-old son learned how to use it in seconds, having seen his five-year-old sister figure it out for herself! It’s bags of fun for all the family as they look like they’ve entered the crazy mirror thing in the circus.

Today’s Times states that John Lewis’ mobile sales have doubled in the past year and now account for 5 to 7 per cent of online sales (presumably by revenue rather than by volume). Regardless of gimmicks, phones and tablets are set to become the devices consumers use to interact with you online over the next two to five years. The trend is undeniable, less desktop, less laptop, more smartphone and loads more tablet.

Is your site ready for that?

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Tech transfer windows

by nick on January 23, 2011

Three isn't a crowd at Google

Two of the world’s top tech companies announced overhauls at the top this week. Sadly, Steve Jobs’ health will see him step aside for an as-yet unannounced successor at Apple (Chief Operating Officer, Tim Cook will stand in at least in the short term). And Eric Schmidt, Google’s CEO, surprised most of us by tweeting, “Day-to-day adult supervision no longer needed! http://goo.gl/zC89p”

Ten years ago Mr Schmidt was brought in to appease Wall Street. The inmates weren’t going to run the asylum; the kids would be looked after by a mature business brain. He’s done an incredible job but of course there are still some who will criticise saying Google is a little slow to react, that their search isn’t as good or as strong as it should be, that they acquire rather than create. But when you’re in this league, they’ll criticise you no matter what. His decade at the helm has been pretty flawless by any standard.

Product trumps business
Just like the footballers that are shuffling around the country this month, tech CEOs need to be product people. It’s easy to say from my chair, but the business side of Yahoo, Facebook, Twitter, Google etc becomes a poor second to the products themselves. Without great products you wont find reach. Without reach you wont have take up. Without take up there is no scale. Without scale there is no money to be had – just look at Delicious’ closure by owners Yahoo!.

I believe product input and knowledge is why Google didn’t look outside for Schmidt’s successor. Just look at the emphasis on product in this excerpt from Schmidt’s blog post on the announcement:

Larry [Page] will now lead product development and technology strategy, his greatest strengths, and starting from April 4 he will take charge of our day-to-day operations as Google’s Chief Executive Officer. In this new role I know he will merge Google’s technology and business vision brilliantly…

Sergey has decided to devote his time and energy to strategic projects, in particular working on new products. His title will be Co-Founder. He’s an innovator and entrepreneur to the core, and this role suits him perfectly.

So we know Larry is definitely a product man. The question is can he change and become more media-friendly under crushing scrutiny, or, is he going to be typically Googlesque and rip up the rules, creating a whole new cult CEO playbook? Plus, what’s the odds on Apple promoting from within for Mr Jobs’ eventual succession?

Your thoughts?

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Au revoir (ish)

by nick on January 18, 2009

My business hero list is short but distinguished. Toward the top – probably at the pinnacle – sit Ron Dennis of McLaren and Steve Jobs of Apple.

These guys have proven themselves entrepreneurs, figureheads, statesmen, leaders and visionaries. Their products embody people’s emotions. Both are bowing out of their current roles: SJ to hopefully improve his health; RD to look after the bigger picture at McLaren Group. SJ is planning to return in June, RD is an always-listening ear to call on.

Game-changers like this pair don’t need my luck but I certainly wish it.

“The real leader has no need to lead – he is content to point the way.” Henry Miller

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Your corporate iPhone

by nick on November 19, 2008

Apple’s frustrations have been well documented over the summer: the MobileMe fiasco, the debacle over the iPhone launch/sign up, patches for freezing MacBook Airs and several other dents in the pristine name of all things Jobs.

But they really do come up with some gems. Charlie Anzman points us to Apple’s Corporate Gifting and Rewards Program.

This will make your company’s pen, mouse mat and umbrella trio look like impulse buys at Aldi. Yes it’s your logo on a lovely gift (who wouldn’t like an iPhone as a thank you) but when you can add your ‘training talks, product overviews, CEO speeches, promotional videos, or other custom content’ it becomes an even more powerful and relevant message.

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Buck the trend

by nick on November 15, 2008

I’m sure you’ve heard the world economy is broken. With so much reporting of the negative it’s easy to obliterate the positives. Here’s a couple of diamonds in the rough for you though:

- Apple finished their fiscal fourth quarter (to 27th Sept) with sales up 35%. All the numbers have gone north which is amazing for a hardware business. 3G iPhone sales are astonishing at 6.9 million for the quarter (more than the first gen did in a year!).

There’s an even bigger cherry on the Jobs’ cake with $24.5 billion in the bank (up nearly 60% on last year) and no debt. When staring at a more-than-possible downturn their rivals must feel it’s an unfair advantage.

- The world’s largest retail park opened this month in, of course, Dubai. With almost 600 retailers trading, the ‘Mall’ is operating at just half capacity.

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