The reason why Apple iPhone Sales Are Doubling Annually

Below are some quotes on the subject of the apple iphone – try to match them to those who made them?

1. “We make the whole widget”

2. “I like to dial numbers with one hand, and maybe I’m the only one.”

3. “If there is something good in the world then we copy with pride.”

which of these was from:

A. Bill Gates

B. Steve Jobs

C. Anssi Vanjoki (CEO of Nokia)

These are revealing quotes and the success of the iPhone is tied up with them. Lets take the first quote first, it’s a little bit of a giveaway and would only have been made by Steve Jobs, the inspiring chief executive of Apple. He’s making reference to the manner in which Apple are vertically integrated; the software, hardware and user experience embodied in their products are all under their control. If there are to be made Apple will always make them, as opposed to a badly organised cabal of contributing corporations competing for a greater share of the value chain. Particularly this permitted Apple to chop out of the loop any idea that the cellphone network operator is important in the cell phone business. Which might not even be a terrible thing for the operators in the short term, in the long term it will reduce them to the position of a utility, uninteresting but profitable. Also significantly it permitted Apple to make ‘the whole widget’. GPS, WLAN, Bluetooth, Accelerometer, Touchscreen, Camera; more than enough to make the application platform so persuasive that they could effectively name their price for it, and choose which operators they wished to work with and not vice-versa.

Bill Gates is much more smart and has a better knowledge of the technology sector than the second quotation may cause you to believe. Particularly if, like me, you don’t have difficulty dialing phone numbers on the iPhone with only one hand. Nonetheless to consider a product and pay attention to only a perceived minor flaw instead of a substantial array of advantages may lead you, at best towards a false sense of security about your own devices, at worst to miss the reason why you are just about to go the way of the dinosaurs.

But the most telling quotation is from the CEO of the erstwhile number one cell phone manufacturer. You do not get to remain number one through duplicating a thing better than that you have, even though you do it with pride. Why weren’t Nokia going after that excellent user experience as well as system which allowed everything that might be done to be done? They had the resources and a Great Deal more experience in the mobile device industry, Apple Newton notwithstanding. It wasn’t an instance of that complacency inherent in the Gates quote however, more likely a collaboration in an industry ‘group-think’. The cell phone industry could only see the world the way it was not the way it might possibly be. The mobile world was the way it was because the operators assumed they owned the customer and knew the kind of phone platforms which customers would put up with while presenting them, the operators, a painless path to profit.

Oh dear, oh dear, at least for Nokia the world isn’t the way it was. On the other hand Apple has generated not just itself, but a whole ecosystem of businesses, a tidy amount of money. The market for iPhone covers, ipad cases, iPhone adapters and chargers, iPhone applications etc etc, is (cautiously) in excess of $4bn per annum.

About the Author

Tuff-Luv produce high quality, crafted leather phone covers and phone cases for the iPhone4, iPad2 and many other mobile devices.

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