APPLE, THE IPHONE, AND THE INNOVATOR’S DILEMMA

WIRED | 2/1/2019 | Molly Wood
smnth28 (Posted by) Level 3
Click For Photo: https://media.wired.com/photos/5c53814cc2835a2c29c0dcfd/191:100/pass/Ideas-Apple-w.jpg

If you re-read the first few chapters of The Innovator’s Dilemma and you insert “Apple” every time Clayton Christensen mentions “a company,” a certain picture emerges: Apple is a company on the verge of being disrupted, and the next great idea in tech and consumer electronics will not materialize from within the walls of its Cupertino spaceship.

The Innovator’s Dilemma, of course, is about the trap that successful companies fall into time and time again. They’re well managed, they’re responsive to their customers, and they’re market leaders. And yet, despite doing everything right, they fail to see the next wave of innovation coming, they get disrupted, and they ultimately fail.

Case - Apple - Company - Success - Success

In the case of Apple, the company is trapped by its success, and that success is spelled “iPhone.”

Take, for example, Christensen’s description of the principles of good management that inevitably lead to the downfall of successful companies: “that you should always listen to and respond to the needs of your best customers, and that you should focus investments on those innovations that promise the highest returns.”

IPhone - Advances - Headphone - Jack - Charging

Then think about the iPhone, which, despite some consumer-unfriendly advances like the lost headphone jack and ever-changing charging ports, has also been adjusted and tweaked and frozen by what customers want: bigger screens, great cameras, ease of use, and a consistent interface. And the bulk of Apple’s investment since 2007, when the iPhone came out, has been about maintaining, developing, and selling this one device.

In the last quarter of 2018, the iPhone accounted for $51 billion of Apple’s $84 billion in revenue. Its success, the economic halo around it, and its seeming invincibility since its launch have propelled Apple to heights few companies have ever imagined. But the device will also be its undoing.

Product

Here’s what happens when you have a product that successful: You get comfortable. More...
(Excerpt) Read more at: WIRED
Wake Up To Breaking News!
Do I know who I am?
Sign In or Register to comment.

Welcome to Long Room!

Where The World Finds Its News!