The iPhone is a ground-breaking device. It single-handedly revolutionized the mobile phone industry. It is exactly what consumers have wanted all along: a device that combines their favorite devices into one. It does everything people want it to do, all in its trademark style. It’s the best handheld device out there. Or is it? Many have said that the iPhone lacks some basic features that are found on almost every other mobile phone. Features such as Flash and Java support, support for 3rd party applications, and even the fundamental features of copy and paste are absent from the iPhone. Some have questioned Apple’s lack of inclusion of these features. What reason could Apple possibly have for choosing to forgo such basic necessities? The reason roots back to Apple’s dominance in the MP3 player market.
Back in 2001, when Apple first released the iPod, the MP3 player market was plagued by bad hardware, complex software, and a poor selection of music. This all changed with the iPod. People marveled over the iPod because of it was stylish and easy-to-use. And, with the introduction of the iTunes Music Store, people finally had an easy-to-use solution for obtaining their music. It became an instant success overnight. Apple earned the title of “the people’s company” because it made its software and hardware easy to set up, manage, and use. They molded the MP3 player market in such a way that it caused consumers to trust anything it did. This caused them to achieve an unparalled level of dominance in the MP3 player market.
Fast-forward to 2007. The mobile phone industry was suffering from some of the same things the MP3 player industry was. People clamored about the complex nature of smart phones and the ugly hardware that encased them. They longed for a simple, easy-to-use solution that catered to all their needs. This is when Apple stepped in. They announced the iPhone. Touted as an iPod, internet device, and mobile phone all-in-one, the iPhone received more hype than any other mobile phone ever. People were so caught up with its revolutionary design that they ignored its shortcomings. Then, when Apple finally released the iPhone, people were ecstatic. People were so happy that the phone was released that they bought it regardless of its faults. They flocked to the device just because it was made by Apple. Apple was now at the point at which they could do whatever they wanted with their products and people just wouldn’t care.
Apple knew this. They were perfectly aware that people would scramble to the device just because it was made by Apple. Because of this, they knew that they could exclude some features and people would still buy it. There’s no reason that Apple couldn’t include support for 3rd party applications and copy/paste in the original iPhone software. By excluding these features, they will force people to buy a new phone just to get them. When the iPhone 2 comes out, the fact that the original device did not have some features will people to upgrade their devices. And they will upgrade, for one reason, and one reason only: they are obsessed with Apple products and they will buy whatever they make. They won’t care that they bought a new phone either, because they’re so caught up in praising Apple for the phone. This effectively doubles Apple’s profit.
What Apple did with the iPod and the iPhone shows that Apple is very good at a few things. First, it shows that they know when to enter a market. The timing of the iPod and the iPhone was a key factor in their success. Also, they know how to shape the market exactly the way they want it. Their mind-manipulating ability and hype-generating ability lets them create a user base that focuses totally on their products positive points and nothing else. The fact that Apple can do this yields them a key advantage: it lets them do whatever they want with their products.
A prime example of this can be seen in the iTunes Music Store. As the iTunes Music Store became more and more popular, so did its dominance. Eventually, due to Apple’s arrogance in wanting to control everything, the record labels became dissatisfied. This created tension between the record labels and Apple, which caused the record companies to try and combat Apple. This spawned a number of serious threats to Apple, such as the Amazon MP3 store, which sports DRM-free songs as opposed to Apple’s DRM-encased songs. Only one of the four major record labels has allowed Apple to sell DRM-free tracks. Apple is finding that they are loosing ground in the digital music market.
It is becoming more and more evident that Apple’s domination is starting to make them monopolistic, as some have accused Microsoft of being. Their control over the prices, lackluster delivering, and their situation in the iTunes store are just some of the characteristics that point to this. It is still unclear as to what the future holds, though. Even though it looks like Apple is journeying down the wrong path, things may change. Only time will tell what happens.
As someone once said, “With great power comes great responsibility.”
