Apple recently revealed iOS 14 Public Beta at WWDC 2020 on 22nd June. It is being considered as one of the most significant design change since iOS 7. It is also a critical update from the privacy perspective, giving a spectacular response to Android 10 Privacy features. Any announcement from Apple is usually trending all over the internet. This time iOS 14 was trending because of another reason, all the new feature in the update were inspired by Android. Everyone was posting memes about Apple and those memes still really help Apple a lot but we will talk about Apple’s Meme marketing strategy in some other blog. In this blog, we will discuss why and how Apple started to act according to its competitors.
According to extracts of Mr Isaacson’s book, Mr Steve Jobs said: “I’m going to destroy Android because it’s a stolen product. I’m willing to go thermonuclear war on this.” Android copied a few things in the initial years but here we are in a world where iOS is copying prominent features of Android from past several years. In my opinion, both the software are highly matured and consumers would only gain if they copy features which are beneficial from the other OS.
Why is Apple is reacting like not-so Apple these days? Apple is facing some hard times when it comes to the market share of iOS. The market share of iOS has slashed from 25.16% to 14.60% over the last decade, and this shift is considered to be concerning for such a high-value company like Apple. Due to this reason, Apple is becoming highly active when it comes to competing with Android.
Apple is paying to Samsung for not being able to sell up to its expectations. Samsung is the display king of the market, no company can beat Samsung in its display quality. All the major brands like OnePlus, Vivo, Google and Apple buy displays from Samsung. From the last two years, Apple is not able to order the number of displays they first decided to buy in the MOU.
They are not being able to sell the expected number of phones and that is why the display panels made by Samsung are not being utilised by Apple. This year Samsung has charged $1B from Apple as a fine for not fulfilling the MOU. Last year as well Apple had to pay nearly $650-750 million to Samsung for not being able to buy their displays. The approximate price of display that is being sold to Apple is nearly $110 each that means this year Apple couldn’t sell approximately 9 million handsets this year. You can SamMobile’s article to know more about it.
All mobile manufacturers know that only selling hardware can’t be a long term business proposition for earning an optimum amount of profit. Customers in this segment are so volatile and they can easily shift to other manufacturers if they only focus on providing good hardware. The key here is software and services and once they can get you to subscribe to those services, you are probably going to stay with them for a long period of time. Apple wants to hook you to their services like Apple Music, Apple Arcade, Apple TV+ and many more. If they get you to purchase all of them, they will have a steady income of $2160 per user in the next two years or until you stop using your phone. They want to make sure they attract users from Android and also save their current customers to shift to Android.
They want to get more and more subscribers to those services and want you to get into their software ecosystem. We all know that it is probably easier to get out of the black hole than to get out of Apple’s ecosystem. I really admire Apple for marketing such a well-thought trap in which people are dying to get in.
Here are 4 major strategies Apple has adopted to gain its market share back.
Multiple devices and one experience
Apple’s goal is to provide all their consumers with the same experience on all of their devices. Apple wants the eyes of their users not to get a slightest of strain by looking at different types of User Interface. They want their phones, tablets, watches and laptops to look the same and give a universal experience. They have started working on it by changing small bits of macOS through BigSur this year, for example, they unveiled their weird looking icons for Mac which look like iPhone icons. Though they are facing backlash from Apple tech enthusiasts, it seems to be a good approach to me. This is a move no other company is taking predominately and also they are not capable of that as well.
Changing Privacy horizons
Apple always had an upper hand when it comes to the privacy of data of its users. I don’t mean that Android lacked in this aspect a lot, it is just the way Android is designed so that its users get the freedom they deserve but it used to attract a bunch of privacy issues. With the Android 10, Google proved that they are taking some huge steps in this aspect and they even got better than Apple with few features.
This year with iOS 14, Apple has just set whole new standards of privacy features by providing the smallest but the most important details about apps and permission granted to them. I wish Google just copy those features if not make them better than iOS. With privacy becoming a vital aspect of our daily, Apple has just made sure it gains the trust of its customers.
Taking a step back in pricing
Apple always wanted to make sure its devices are used by a selected crowd to maintain its control over its users as well as maintaining its premium image in the eyes of their consumers. They never wanted to make their technology accessible to all so that they don’t lose a bit on their brand value. For the first time in the history of iPhones, the price of the successor of an iPhone was reduced by $50, I am talking about the shift from iPhone which was starting from $700 to iPhone 11 which was starting from $650.
They were always happy with profits they make with their phones then why is it that Apple is starting to reduce prices of its iPhones? There are two reasons behind it;
- They are losing their profit share in the market. Though they are grabbing 66% of market profit into their pockets. There was a time when it was more than 90%. They want to make sure they sustain at these levels if not going back to 90%.
- Apple has made its image as the most premium smartphone brand over a decade and reducing prices now won’t hurt their image. Now that the image is standing strong they got back in work to gain the market share.
This year Apple launched iPhone SE at $399 and it was a straight attempt to gain market share. They are providing users with a great deal who want to change their phone and who got their wallets scraped due to the pandemic. It was just to attract consumers to their ecosystem and considered to be a straight attempt to destroy Android mid-range market. Though the impact of this phone in India is minuscule and you can read my other blog on iPhone SE’s failure in India to understand proper reasoning behind my assertion.
The Pro game of Updates
Apple is on the best of its game when it comes to providing updates. iPhone 6s is getting the update of iOS 14 which makes it 5 years of software support. On the other hand, Android is just providing software updates for 3 years guarantee and which is where Apple makes its old customers feel more content. This is something Apple is doing for a long time but Apple is doing something even better when it comes to updates.
Apple is providing a security patch update to phones till iPhone 5s, I mean that phone is 7 years old and no kidding it is older than the whole career of OnePlus. I know there are very users of iPhone 5s right now but it is just their way to show commitment to their customers.
Apple is becoming the new Android
iOS 14 is a straight and open attack on Android, every new feature added by Apple was the main distinguishable factor for Android whether its customization or multitasking. I don’t mean that Apple is doing it better than Android but still, Apple had just proved to the market that even we are providing those features and It is good to shift to Apple. Apple will take time to be better than Android in those aspects but Apple clearly threw a grenade on Android’s base.
You will notice that the new feature in iOS 14 are either inspired from Android or straight away copied but I genuinely admire Apple this thing because they have finally started listening to the consumers and giving them what they want. These are the top features of iOS 14 and you will see them in Android phones already;
- Picture in Picture
- Widgets on Home Screen
3. Option to change Default Apps
4. Integration with Google Assistant
5. Customisation options for its users
6. Hardware gestures like Double tap on the back
Apple is becoming a little bit more like Android to snatch Android users from Google and it is just a mindblowing strategy in my perspective. Android is not all massacred by this move but it is just an indication for Android that they need to change a few things otherwise Apple can create a bloodbath in the OSs market in a few years. I hope Android come up with a good response strategy.
In the end, Apple is making all the smart move and it is doing things that this company usually restrains from doing. By reading all this, we all might conclude that Apple will just destroy Android in a few years but I think now it is impossible for Apple to do it as even Google is making some good moves. I really appreciate that these OS are copying things from each other, it is just beneficial for us. We can discuss the future of these both Operating Systems in the comments section. If you think I missed something from Apple’s strategy then please comment your views down and enlighten me with it.
Thank you for reading. Peace Out