If you are in the innovation business you know you can’t be still and you know people should think you are always working on the next Big Thing. But another lethal mistake is not planning for the long run!
It is surprising how many people are criticising the strategy for the iPhone 5C. Its fault being just $100 cheaper than the bigger and fully-featured brother iPhone 5S. So why did Apple introduce such new device when they could have simply kept the iPhone 5 for longer? One of the main reasons I reckon is…
…because they are planning for the long run!
For a consumer electronic company planning ahead means to attract new and younger customers, and of course hook them to your brand and services. The future native american loans gains are huge and if you have billions of cash you can definitely wait one year or two to start seeing the fruits.
Today the iPhone 5C isn’t cheap, at the end there is still some pretty cool tech in it. But one day, in one year or two, it will be. And I am sure at that point it will be incredibly attractive to the youngsters, the new customers which will be hooked for life to an iCloud subscription and Apple hardware.
It’s true Apple could have waited another year and release the iPhone 5C only when it would have been actually cheap. But Apple had to update their software so this has been an opportunity to design software and hardware in unison, and the hardware is the iPhone 5C, not iPhone 5S. iOS 7 looks cool and fresh because with the iPhone 5C it’s set to attract the younger customers, maybe not today but pretty soon.
For this reason I think we are gonna see some interesting changes in the market, but maybe we need to have a bit of patience!