Apple has happy customers, a huge stockpile of cash, a huge stock price, growing revenue and profits. What’s Apple’s secret? Eric Bleeker takes a look at The Secret to Apple’s Success in The Motley Fool:
Rule Breakers analyst and writer Tim Beyers says Apple’s need for innovation is exaggerated; product improvements have largely been incremental tweaks to existing product lines.
What? It’s not Apple’s famed innovation?
Apple’s success is largely the result of its tight focus on a small number of product lines that are complementary to one another.
What about all that famous Apple R & D? Isn’t Apple all about “the next big thing?”
Apple has followed a different strategy: It allowed others to create the growth markets and then took its existing platforms and technologies to address what users really wanted from these markets.
Let’s see: Mac to iTunes, iTunes to iPod, iPod to iTunes Store, iTunes and iTunes Store to Windows PCs, iTunes and iPod to iPhone, iPhone to App Store, App Store apps to iPad. Repeat, ad nauseam.
It’s the circle of life, Apple style.
Apple doesn’t really need to reinvent the wheel so much as stretch out its calculation of pi by a few more decimals. Apple’s focused efforts on creating iOS and a rich development community around it now yields a powerful platform that can scale out to new markets.
Now it’s iPhone, iPad, iPod touch, iOS apps and Apple TV. What’s next?