Apple Innovation

Key lesson 1: Innovation is the key to staying alive in a rapidly changing market.

The market is dynamic, therefore so must the company. Steve Jobs looked beyond computers but stayed within the field of technology and actually revolutionized it. From the beginning Apple invested heavily in its R&D.

Key lesson 2: Consumers crave openness and compatibility.

Sales suffer when compatibility and accessories are limited. When third parties are allowed, such as an PC can run iTunes and Mac has Microsoft Office, sales soar.

Key lesson 3: Don't box yourself in exclusivity contracts.

People love their freedom of choice. By solely going with AT&T as a carrier, Apple turned away a lot of customers who refused to join that carrier service. People were actually willing to pay outrageous amounts of money for an open phone or risk searching for one in a grey market. It also left the field wide open for other smart phones to be developed and partnered with other mobile service providers.

Key lesson 4: If your blue ocean is drying up, don't jump into a red one.

Some of the strategies the other CEOs tried was lowering price to match competitor strategy, licensing clones, and subcontracting out manufacturing. Apple was seen as an elite PC, it was compared to a BMW, it was first in class. By trying to imitate the competition, the other CEOs were taking a step back. Jobs figured out how to evolve, expand, and create new first-in-class products.

Apple is the market leader in portable digital music players with their line of iPod products. Apple is also a leader in third-party digital content sales with the iTunes store, which seamlessly integrates with iTunes software and iPod hardware.

In June of 2007, Apple released its newest product, the iPhone. The iPhone combines a wireless phone with digital music and wireless Internet capabilities. The iPhone is probably the fastest selling new product in the history of Apple, with sales estimates of the $600 phone as high as 700,000 (Goldman Sachs) units during the first weekend after its launch. AT&T Wireless is the sole service provider for the iPhone, and Apple reportedly gets a share of iPhone service revenues.

Apple sells its products