The iPhone was finally released on Friday, allowing the feverish hype and anticipation to give way to experience and analysis. While there have been reports of quirks, the consensus on the device seems favorable.
With iPhones in hands, people can now properly address its impact on the future. Umair Haque, writing at Bubblegeneration, offers his perspective on Apple’s strategy:
1) Pick an industry which sucks (ie, imposes significant nuisance costs/menu costs/externalities on consumers)
2) Redress the imbalance by making something consumers love
3) …Which disrupts the long-standing industry equilibrium, and shifts market power
4) Use said market power to redesign (a hyperefficient) value chain
It is eerily similar to the strategy Apple is using to dominate the music retailing industry with iPod + iTunes. I think things are even more interesting when looked at in the broader context of Apple and its products.
“Three screens” is a common term in the vernacular of the technology industry. It refers to the unique types of displays present on desktop computers, televisions, and mobile devices. These comprise the three devices a typical person interacts with every day.
Each screen presents an interface tailored to the situations it is used in. For example, a computer is actively controlled from within a couple feet, using a keyboard and mouse. Meanwhile, a television is more passive, controlled with a few buttons on a remote control while relaxing on couch.
Apple has now put roots down in each of the categories represented within the three screens. Mac computers are mature and respected. The promising iPhone has now been introduced. Meanwhile, the experimental Apple TV continues to improve.
Apple’s focus on user experience, coupled with their control of both hardware and software, gives them a unique advantage and incredible leverage. With technology’s ever increasing pervasiveness in our lives, Apple’s potential seems almost limitless.
