Posts tagged Apple
Perhaps the best way to think about Apple’s acquisition of Beats is to think about Disney’s acquisition of Marvel. Here’s what The New York Times had to say:
The brooding Marvel characters tend to be more popular with boys — an area where Disney could use help. While the likes of “Hannah Montana” and the blockbuster Princesses merchandising line have solidified Disney’s hold on little girls, franchises for boys have been harder to come by.
Disney bought an audience to which their current products did not speak. When you’re selling content, there are no tech specs. Appeal is based on emotion, culture, and fashion. Disney bought Marvel in order to buy the attention and devotion of comic book fans, an audience which is strong in demographic segments where Disney was weak.
I believe Apple bought Beats largely for this reason: Beats is popular with the same 14-25 year olds that care less about Apple products. It is no mistake this is the audience Samsung, Motorola, and HTC have been addressing. Each of these firms did their market research and realized Apple was weak with youth.
Consider this and feel ancient: the first iPod or iPhone this youth audience had access to was likely their parents. The ways in which Apple was cool do not apply to this segment (U2 iPods anyone? Alicia Keys announcements?) Cool is fickle, and only very rarely does one remain in vogue across two consecutive generations1.
Compounding Apple’s waning cool is the trend of technology products to be evaluated for qualitative reasons. This is a trend Apple itself kicked off, starting with the first Bondi Blue iMac. The features and specs of a technology product are becoming less and less important. Read Sam Biddle’s excellent back-room history of Beats to see this in action: the alleged technical brains behind the original Beats were literally ousted and the company didn’t miss a step.
As technology becomes wearable, this trend towards quantitative assessment is exacerbated. People hesitate to buy a gadget they keep in their pocket or bag if they don’t like the way it looks. People will never buy a gadget they keep on their wrist if they don’t like the way it looks. Period.
If Apple isn’t fashionable, any wearable they launch is dead in the water. Regardless of it’s technological abilities. Apple is cool for the older, “U2” audiences. If it is even questionably cool for young audiences, a wearable product will never become a mass success. Young people are crucial for new product categories. They have high disposable incomes and lots of disposable time (to take on learning curves).
Apple’s purchased Beats for it’s demographic appeal. Without this appeal, all wearable product lines were at risk.
Though generation-skipping cool is the norm. (We’re just borrowing our grandfathers Filson bag, scotch, and facial hair.) ↩
“ iTunes is dead. But it’s still the big play. Microsoft became trapped in the Windows legacy and now, it appears, that Apple is becoming trapped into the iTunes legacy.”
“ We don’t do focus groups - that is the job of the designer. It’s unfair to ask people who don’t have a sense of the opportunities of tomorrow from the context of today to design.”
Jonathan Ive was interviewed by the Evening Standard.
On competitors’ failures:
Most of our competitors are interesting in doing something different, or want to appear new - I think those are completely the wrong goals. A product has to be genuinely better. This requires real discipline, and that’s what drives us - a sincere, genuine appetite to do something that is better. Committees just don’t work, and it’s not about price, schedule or a bizarre marketing goal to appear different - they are corporate goals with scant regard for people who use the product.
And on innovation and spending time on details:
It’s incredibly time consuming, you can spent months and months and months on a tiny detail - but unless you solve that tiny problem, you can’t solve this other, fundamental product.
You often feel there is no sense these can be solved, but you have faith. This is why these innovations are so hard - there are no points of reference.
Every additional interview with Ive further convinces me him and his team share the motivations of Benedictine Monks, who stole away from society to obsess over meticulously hand-written Bibles.
An Apple commissioned study by the Analysis Group (and their department of boring names) estimates that Apple has created roughly 514,000 jobs in the USA.
Half-a-million might seem large, but when you consider the infrastructure required to deliver $500 billion in value the estimate seems conservative.