With HP announcing that it will be exiting PC/Laptop business today, the end of PC seems more inevitable than ever. This needs to be seen in the context that HP is the largest maker of PCs. The earlier big weight was IBM when it sold its PC business to Lenovo. Dell too seems to be struggling in this low profit commoditized business. The future of computing seems belong to Smartphones and Tablets.
In mobile space the struggling Motorola Mobility (manufacturer of Droid Line of Phones) was agreed to be bought by Google for a whopping 12.6 Billion Dollars this week. Switching to Android earlier, didn’t help Motorola to yield the expected turnaround. The pioneer in smartphones, Palm (part of HP) is officially announced obsolete today.
Though these news indicate the changing dynamics of the Computing Technology space, the most important revelation is the amazing rise of Apple to prominence. With PC and Mobile OEMs struggling to maintain their bottomline with declining topline, Apple’s growth in both the these areas is astounding.
Within a decade, Apple has conquered the PC and Mobile space and has risen to be the pioneer of innovation and high quality consumer goods.Here is the list of Apple’s products that have been the leaders in their respective markets.
- IPod Mp3 players (Smashed Sony’s Walkman series and commends >80% market share)
- IPhone (Revolutionized the Touchscreen Smartphone with IOS and AppStore Concepts.)
- Mac computers (Highest Growth Rate and most profitable, when PC sales are faltering)
- IPad Tablets (Created a new touchscreen Tablet market and commending >90% market share. Consumers starting to refer all tablets as Ipads)
Not only the above, Apple gives competitors a run for their money. For instance, Sony was dethroned as consumer electronics giant, Dell & HP struggling in PC business, Google struggling to keep Android’s momentum by overspending for patents. Google is no more known for innovation,Apple is. Nokia no more leader in Phones, Apple is.
The question is how did Apple achieve this phenomenal success? Here are the 2 main reasons
- Create products that are innovative, usable and above all that works. Apple plays down specs and features and concentrates on usability and aesthetics. While competitors boasted high end specs Apple has historically concentrated on features that users want most. While an Android phone/tablet always feature high specifications, Apple phones are designed to be sleek,hip and usable.
- Avoid tempting price points and concentrate on value. Apple has always avoided indulging in price wars that is race to the bottom. While competitors are struggling with wafer thin margins, Apple is reaping profits in the same businesses by offering more value to customers for the money that they spend on its products.
Though Apple’s policy of maintaining tight control over its platform might hurt it in the long run, until it delivers the same high quality and innovative products it will remain the leader of Personal Computing Space both in Software and Hardware.