Linked by Thom Holwerda on Thu 19th Sep 2013 22:25 UTC
Apple

Great interview with Apple's executives.

When Apple got into the mobile business, it was Nokia’s world. The Finnish company was considered something of a miracle worker. "I'm old enough to remember when Nokia had margins of 25 percent, and there was absolutely no way they were going to be dislodged from their leadership position," says Kuittinen of research firm Alekstra. Says Cook, "I think [Nokia] is a reminder to everyone in business that you have to keep innovating and that to not innovate is to die."

Quite true. If a fingerprint scanner and a 64bit ARM chip are innovation, time will tell, but for now, Apple is surely still atop of its game. The amazing load of iOS 7 application updates and the rapid adoption of Apple's latest is testament to that.

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Comment by BenGildenstein
by BenGildenstein on Fri 20th Sep 2013 16:11 UTC
BenGildenstein
Member since:
2013-09-20

QUOTED FROM ARTICLE: "When Apple got into the mobile business, it was Nokia’s world. The Finnish company was considered something of a miracle worker. "I'm old enough to remember when Nokia had margins of 25 percent, and there was absolutely no way they were going to be dislodged from their leadership position," says Kuittinen of research firm Alekstra. Says Cook, "I think [Nokia] is a reminder to everyone in business that you have to keep innovating and that to not innovate is to die."


This is classic mis-direction from highly adept marketers. Innovation isn't strictly required for a company to succeed, sales are. Now I can appreciate that innovation can help, but consider the iPhone 5s as a product:

It has a slightly faster CPU/GPU, a thumb scanner, a slightly better camera, a slightly different colour, and the OS has slightly different graphics and animation. These can certainly be considered innovations, but they are merely incremental improvements.

I would posit that Nokia has at least "innovated" this much, and certainly changed much more relative to its earlier phones as it has switched to Windows Phone. But I would also say that Nokia has failed to sell devices -- and this is the reason for their downfall. It's not lack of innovation, it's lack of sales.

Apple has a wonderful way of convincing the public that minor bumps in phone features are real innovation, and then use their popularity and high sales to justify the claim of innovation magnitude. And the public eats it up. But it's easy to see that this is logically invalid. What Apple does really well, is selling devices which is in no small part thanks to amazing marketing, PR, customer satisfaction, auxiliary services, customer support, etc.

As for innovation: there are plenty of companies that are innovating at least as much, with far lower sales and market penetration.

I'll say it again: innovation doesn't lead to success, sales do.

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