Monday, September 25, 2017

Will the iPhone's blue ocean strategy work?

Apple unveiled its much-anticipated iPhone upgrade - the iPhone X - earlier this month.

The following video is a splashy summary of what the phone offers:


The following video has Jony Ive's voice-over and gives a bit more about the actual technology behind everyone's favourite iDevice:



The most interesting feature for me was the augmented reality piece. With the success of Pokemon Go, the business opportunity is just waiting to be exploited. However, there seems to be more work that needs to be done for it is ready for mass consumption.

Perhaps, the following Funny or Die "review" of the release summarizes the sentiment out there:



But is it fair?

It's definitely not the wow of the first iPhone or iPad release. It feels incremental. However, Wall Street Journal has a different theory: Apple is targeting the Chinese "elite" who would want such a phone because of the status it affords:

"The iPhone X design has raised hopes that it can reverse Apple’s fortunes in China, Apple’s most important market outside the U.S., where sales have fallen six straight quarters.

“The high-end Chinese phone market is super competitive and customers are very discerning but also enthusiastic,” said Benedict Evans, a partner at Andreessen Horowitz, a venture-capital firm. “If Apple can get something that rings the bell [with them], then this will work.”"

This could be a blue ocean strategy at work (see the video below for more).

The idea of a blue ocean strategy is that instead of competing in the blood-soaked waters of intense competition companies migrate to the blue ocean where there is no competition or where the existing competition doesn't matter. 

Let's face it.

Either we're guilty of lining up for one of those iDevices - or know someone who did/does. But at the same time, there are no big line-ups for Microsoft or Samsung computing devices. This uniquely positions Apple is to capitalize on its brand - while others are left fighting in the red oceans on product features and price.




Author: Malik Datardina, CPA, CA, CISA. Malik works at Auvenir as a GRC Strategist that is working to transform the engagement experience for accounting firms and their clients. The opinions expressed here do not necessarily represent UWCISA, UW, Auvenir (or its affiliates), CPA Canada or anyone else

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