Another iPad, Another Update.

Looking back at the revolutionary ‘1984’ Superbowl commercial, it is clear that Apple, with Steve Jobs at the helm, has been a leader in terms of both the software and hardware innovation that it has brought to the computing industry. The Apple II, Macintosh, iPod, and iPhone were all products that completely changed the way that people used technology, and always led back to the theme of the iconic ad: “Think Different”. Apple changed the way that people interacted with computers, incorporating the graphical user interface into the Macintosh, changed the way that people consumed music with the iPod, and change the way the music industry operated with iTunes. However, more recently with the March 7^th unveiling of Apple’s newest iteration in the iPad product line, I felt that it would be appropriate to take a look into the role that the development of the tablet computer has played in taking a step toward Apple’s vision for the future of computing. In a New York Times article titled “As New iPad Debut Nears, Some See Decline of PCs” by Nick Wingfield, one can see the direction that the touch-screen device has the potential to take over the course of the next few years.

“When we talk about the post-PC world, we are talking about a world where the PC is no longer the center of your digital world but rather just a device,” he said, pacing the stage. “We are talking about a world where your new device, devices you use the most, need to be more portable, more personal, and dramatically more easy to use than any PC has ever been.” –Tim Cook

With the release of the original iPad and iPad 2, the effect that the tablet line had on the industry was huge, as tablets caught “on fire” as stated by a former Microsoft executive; Apple had sold over a million iPads within a month, almost half the time that it took Apple to reach the same amount of sales with the original iPhone. In the time between the iPad 2 and the recent “new iPad” companies such as Samsung, RIM, and HP have tried, with moderate to little success, at introducing a solid competitor to the iPad. However, more recently, Amazon has come out with a product called the Kindle Fire, aimed at directly competing with the iPad in functionality as well as, more importantly, price. In an environment where the tablet computer has become a target for competition from other companies, how will Apple continue to distinguish itself?

Despite the so-called “amazing new features” of the new iPad, the recent product update is really just that, an update. No innovation. No mind-blowing new features. However, people undoubtedly will still flock to buy them. I think the key to Apple’s strategy is the persistence, thought, and research that they put into their products. Drawing Walter Isaacson’s biography of Steve Jobs, seeing the CEO’s focus on quality, innovation, and detail, even when dealing with minute details such as the color of the case, shape of the screws, or aesthetics of the hardware layout inside the products, it is no wonder that Apple has been able to alter the face of computing in such dramatic and long-lasting ways. In contrast to companies such as Six Flags that try to expand into areas relatively unrelated to their CVP, businesses such as Apple have such great success because they focus on their strengths, and gradually develop their products over time. While they have had success with dramatic new innovations such as their MacBook Air, by following the trends of their products, it is easy to see that they start with a revolutionary idea, and then work on improving the product over and over again to make the product and experience more user-friendly each time.

What do you guys think of Apple’s strategy, particularly of the company’s push into developing the tablet market? Are there any potential strengths or weaknesses that it has?

Microsoft Peeks through the Window at the Smartphone War

Given the recent growing trend of the smartphone, recent Apple Inc. reports show data indicating that shipments of Apple smartphones exceeded shipments of client computers and tablet computers combined reflects the current state of the smartphone industry with companies developing smartphone platforms such as Android and iOS, most notably. While iOS became the “leading smartphone and client PC vendor in Q4 2011”, an interesting competitor has been in the back of most techie’s minds since CES 2012 last month- Microsoft.

The company’s platform has not captured the heart of consumers as rival Android and iOS platforms have done, leaving the Windows Phone at a 1.6% share in the worldwide smart phone market, down 14% from the previous year, but according to an article by Ewan Spence, a contributor at Forbes, gives a prediction about how Microsoft will try to establish itself in this market during 2012.

Pairing itself with Nokia, Microsoft aims to insert itself in the middle of the current smartphone war, primarily targeting Google and Apple by pushing for the development of its products’ technological capabilities, as well as the Marketplace to go along with it. The interesting part of Microsoft’s strategy aside from its product development is its price point- Microsoft may be allowing AT&T to price the newly revealed Nokia Lumio 900 phone at $99 with a two year contract.

The low price effectively undercuts comparable phones from Samsung and Apple by about $100, and certainly undercutting the RIM Blackberry, which lag behind in both performance and price point. Armed with a strategy highly reminiscent of Amazon’s Kindle Fire pricing strategy, this shows that Microsoft is willing to take the almost $250 million loss- which is nothing in comparison to the $50 billion that it has in cash- in order to allow itself to gain market share. However, to achieve this, Microsoft needs to build up the environment that the Windows Phone will inhabit. In some areas such as the Enterprise platform, Microsoft is poised to replace RIM in that range with its key resources in that area.

However, the most important consideration is indicated in the last line of the article that “the challenge for the Windows Phone is not for one department, but for the whole company.” Looking at Microsoft’s strategy as a dynamic process, Microsoft needs to foster competitive advantages over time. However, in a smart phone market already saturated with well-established platforms, this will be difficult to achieve. Microsoft has a history of being able to capture the interest of a large segment of consumers with its Windows client computer operating system line, but with products such as the Zune and Zune Marketplace, Microsoft has not been nearly as successful. It is clear that in order to succeed in this venture, Microsoft needs to focus on the purpose behind pursuing this product line and then put this purpose into practice, but the difficult lies in defining how this purpose ties into Microsoft’s current strategy.

In my opinion, Microsoft has the potential and available resources to pursue this strategy. However, they need to focus on developing their differentiating factor with the Windows Phone. It is easy to try to find ways to imitate or draw inspiration from existing products, but since Microsoft operates in an inherently different way, I feel that they need to also reflect this in the way they develop, promote, and implement their product and its associated infrastructure.

In closing, what do you guys think? Will Microsoft be successful in growing its presence in the smartphone market, and how will this tie into Microsoft’s core business values and purpose?