Saturday, September 4, 2010

Is Apple's Control Strategy Sustainable?

I think something very unique about Apple is their ability to exercise such a high level of control over their customers. Most tech companies operate by providing either a hardware device or software technology. These devices and technologies are than combined into products such as mobile devices and computers that are sold on the market. Companies such as Dell, Hp, Microsoft, and Google all follow this strategy. These companies also believe in allowing the end user more control in how they use their products. Apple has always been known for exercising excessive control of their customers. Apple has control over every step of the process of the design and production of their devices. Apple makes their computers, monitor, operating systems, etc. Is this good? This is debatable.

Some argue it is a quality control issue. As i've said Apple controls every bit of its design and production. Take for example the iPhone. People have to submit and have their application approved. This allows Apple to watch over goes onto their products to ensure that their products run smoothly; however, this also allows Apple to censor whatever it deems inappropriate. Is this really good? For example, HTC's 4G phone supported by sprint allows users to use a feature similar to FaceTime over 3G networks. This feature does not work as good as it would over wifi but it still works. Apple has incorporated this feature on the phone, but only allows users to use it on wifi. From here one has to wonder. If someone would develop an Application that would allow users to use video chat over 3G instead just over wifi, would Apple allow it or deny it? I have to believe they would deny it to avoid the risk of making their company look bad. Is this in the best interest of the company? This is only one example of Apple flexing its are of control. Is this a sustainable model? As of right now Apple is a Goliath; however, an open source, free flowing David-like company could come in an dethrone Apple.

It is my belieth that knowledge, especially in the tech industry, can not be constrained. I think Apple may still have some room to grow; however, companies like SunMicrosystems with OpenOffice and Google with Google Chrome may bring down Apple. Technology is moving in the opposite direction of Apple. Will their current business model hold with this shift or fall?

3 comments:

  1. I think this is an interesting question. As someone who has never been swept up by the "everything Apple is the greatest" fever that a lot of people I know seem to have been afflicted by, I see how you can question their approach. However, I will say that recently I have been more open to giving their products a chance (which includes buying an iPhone) and I have been impressed. I think their battle with Google, who seems to take almost the opposite approach, will help to shed some light on whether or not this strategy can be sustained. I think it is interesting, because as you said they are able to enforce a high level of quality control, but is it at the cost of innovation?

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  2. Good article, Doug. I agree with your assessment on the risk Apple faces by curating the availability of apps in its app store. It's as though they are trying to hold on to some vestige of the supply-push model we talked about in class, while its primary competitor, Android, has adopted a completely open model. Google's strategy of allowing anyone to develop and sell an app for its Android platform is more in tune with an increasingly demand-pull world. It allows any user of its product to customize his experience however he sees fit. No middleman required. It's actually one of the reasons I decided against an iPhone...I just don't like the idea of Apple telling me what I can and can't put on my device.

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  3. I must admit I'm an apple fan. Their products are of good quality and work well, but I agree that they are far too locked down. User can't change many features that should be able to be changed (like message tones on the phone!!!!). It's always surprised me that they were able to get away with this in an industry where customization and being individualistic should rank very highly. I think it's the way they market their products that sort of skates over this flaw. Everything is shown as being so incredibly user oriented that people forget what their giving up by going apple.

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