Apple appears to have found analyst favor this week. While Bank of America seeks to show investors that Apple continues to innovate, another Apple analyst has outlined four reasons to believe in Apple’s continued success.
He also argues that the claim once made by Steve Jobs, that the iPhone gave Apple a 5-year edge over other smartphone brands, is twice as true when it comes to wearable devices …
In a long Above Avalon After the post, Neil Cybart begins by suggesting that Apple has once again fallen in love with the iPad and Mac, rather than focusing primarily on the iPhone and portable devices.
A few years ago, Apple was more aggressive with products capable of making technology more relevant and personal (iPhone and Apple Watch) […] Apple Watch and iPhone were Apple’s clear priorities, while iPad, Mac laptops, and Mac desktops ended up facing a battle for management’s attention as if they were located at the end of the rope that management Apple was pulling.
Apple changed from a “pull” strategy in which some products like the iPad and Mac seemed to have difficulty maintaining a push strategy characterized by the simultaneous advancement of all major product categories. This change seems to have been born in 2017, which would explain why we are still seeing the initial fruit of the effort. The iPad and Mac product categories have benefited most from this revised “push” product strategy with more frequent and noticeable updates.
Second, it says Apple has an even stricter focus on user experience.
Rather than defining innovation as being first or doing something different, Apple views innovation as something that improves customers’ lives. An important consequence of this have been the software and hardware versions that have prioritized the quality of the features over the quantity. This year’s WWDC came in 20% shorter than previous keynotes. While having a digital format helped reduce time due to faster transitions, no clapping, etc., fewer new features were also announced. However, the features that were announced were more important in driving the user experience.
Third, Apple continues to strengthen the appeal of the ecosystem.
It’s not just that Apple is pushing multiple product categories at the same time. Instead, it is about adding cohesion and common elements between product categories. Apple is making it easier for people to buy multiple Apple devices. As users move deeper into the Apple ecosystem, satisfaction and loyalty rates will go even higher. The bottom line is that Apple’s 1 billion users aren’t just a billion users. Instead, they are a billion users less likely to use non-Apple devices and services in the future.
Cybart sees enormous untapped potential here as he estimates that about half of all iPhone owners still don’t own any other Apple devices. I would add that ARM Macs will be a massive boost to the ecosystem, thanks to Macs being able to run iOS apps.
Finally, he says that Apple doesn’t have any strong competition at the moment. Samsung has no direction or vision. Google is excited about what products can do without paying enough attention to the user experience. Amazon opted for smart speakers when it should have opted for wearables. Microsoft Surface is not competing with the iPad, except in the corporate market.
He ends by recalling Steve’s comment when he released the iPhone in 2007 that Apple was five years ahead of the competition. He says it turned out to be true and that the gap in wearables is even bigger. Apple’s continued success is likely to be even more dramatic in wearables.
Giving Apple a 10-year edge against the competition with portable devices may end up giving the competition too much credit. Excelling in wearables requires a corporate culture, a product development process, and a business model that few companies other than Apple own. In many ways, Apple was built to excel in wearables. Apple should probably get used to being its own toughest competitor.
The whole piece is worth reading.
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