Apple after Steve Jobs

With Steve Jobs’ unfortunate demise last year, speculations were rife that Apple will not be the same again. Many even went to the extent of saying that it would no more be able to create extraordinary products, market at equally extraordinary prices, that it would gradually lose market and soon be relegated to the crowd.

Besides Jobs’ charisma and showmanship, what was indeed missed was his business strategy which could be called maverick at the least. Apple has always launched gadgets which were way ahead of their time, thereby showing the way to the world. Over and above this, Apple always released the later versions of their devices even before the competition has caught up with their previous releases, effectively proving that their only competition is themselves.

Post Steve Jobs, Tim Cook came to the helm of Apple when it was one of the best technology companies of its time. Having to match Steve Jobs’ charisma and exceed expectations in the inevitable comparison with Jobs’ leadership and his, a lot was at stake for Tim Cook and for Apple too. The launch of the new iPad puts to rest many of the concerns.

It would only be fair to Cook to say that he was at least, if not more, as good as Jobs was, at the launch of the new iPad. Cook held the audience’s and the world’s attention and went through the launch with the ease of a virtuoso.

Now, as far as the business strategy is concerned, the changes though subtle are apparent. Firstly, the innovation seemed to have changed course towards improving user experience in the existing features than bringing in new breakthrough technologies. This would be welcome, although in the short term because usually, by the time people got familiar and understood how to use all the features in the device, there would be many similar products offered at a lower cost. This was pretty much what happened in the case of the iPhone and the iPod- a new one was released within a few months of most people buying one, perceptively making their devices old. In effect, Apple would now be better utilizing the product life cycle to its advantage (read, letting the product mature before the next version is released).

Secondly, Apple instead of replacing the iPad2, reduced its prices to the entry level alongside the new iPad. This would make the iPad2 particularly desirable to the larger customer bases such as the emerging markets and students which were not comfortable with the earlier price tag. Over time, there could be an iPad for every task and for pocket. This could mark Apple’s foray beyond the skimming pricing strategy, into the volume markets.

Finally, there is the possibility that Apple is just testing the waters with this launch. The way the new gadget was named not iPad3 or iPadHD but just the new iPad, the way iPad2 was retained, the way Cook dropped hints that Apple is building the next amazing device- all these are not-so-subtle hints that something big is coming.

In all, it is evident that Apple has created an image for itself larger than any individual. Agreed, Steve Jobs was one of the best businessmen of his time but Tim Cook and Apple are still very much in the race.