Apple’s Winning Formula.
The news story that Apple will pass Microsoft in revenues by 2010 broke to day through an analysis from 10layers. The numbers show that while Microsoft has had a linear growth in revenue over the last years, Apple has had an exponential growth.
The Apple success is largely due to its killer gadget iPod that now has about 60% market share.
Apple has developed into a gadget giant with focus on user interface on one hand and outstanding designed hardware on the other. That is simply the best way to keep your focus on the customer.
Microsoft on the other hand has only had two big products, Windows and Office. They have simply not been able to produce anything substantial besides that. Some of you might say Xbox, and yes the 360 is selling more than expected, but Microsoft is loosing money on every single sale. The Wii (with its focus on user experience) and the PlayStation (with it’s technology and game-base) will probably keep making sure that they continue to loose money on it. The other “problem” is the Zune. An other attempt to get into a new market for Microsoft is probably going to end up like the Xbox. They don’t understand the consumer electronics market the way Apple does.
When Apple now enters the mobile phone market, they know they can do it on their own terms. They do it with inovations and style, defending their reputation as masters of user interfaces and design.
When I saw the new iPhone a couple of weeks ago, I wasn’t considering whether it was enough phone to suit me, I caught myself considering whether it was enough Apple to suit me. I was simply considering whether Apple had kept their focus on user experience and design.
What is the product that has saved Motorola? The RaZR! Is it because it is a superior phone? No.
Apple has demonstrated an un-presedented track record in making software and hardware that works, AND LOOKS GOOD.
The hardest competitors for Apple in the coming years are in my opinion Sony and Samsung. Both of them has understood the importance of style and user experience. Using the most advanced technologies available at all times to achieve just that.
Ericsson historically made the most reliable and technically advanced mobile phones in the world and was knocked down by Nokia, when they enterred the scene with nice looking phones as well.
Microsoft is in Ericsson’s position now. They will continue to perform well as long as they manage to hold on to their OS and Office customers with new versions. Then they can continue to afford projects like Xbox and Zune.
By 2010 the winner will still be the ones with the best (you probably guessed it by now); User Experience!
This is a bit alarming. But personally I think it’s not fair to judge or predict the future of Microsoft or Apple through their products. Apple has just released the newest iPhone but have you heard the news and complaints about it? From these news did you think this new product will last for long unlike Windows which remains sought after as long as computers remain to be useful at work and in everyday life.
But then again it’s good that you have posted this thought. I hope the companies mentioned here will be alarmed and will immediately act on their company losses.