Steve Jobs promised Google "thermonuclear war" in response to its attempts to compete with the iPhone. Author of Forbes, Ewan Spence tells how Jobs's successor Tim Cook was able to avoid this war, but still successfully tighten the noose around the neck of Android. Here are the most interesting moments, which many can teach from smaller businesses.
Jobs promised: "If necessary, I will spend my last breath on it, I will spend every penny of $ 40 billion in the bank accounts of Apple, to rectify this injustice. I will destroy Android, because it's a stolen product. I'll make them a thermonuclear war."
Cook decided that an open war will not help. He gambled on a long strategic game that undermines the viability of the Android system. And the results seem to be obvious: profit and revenue, for example, Samsung smartphones drops sharply, while Apple has just ended financially the most successful quarter in history.
One of the tricks of Apple – is that the company has caused 64-bit computing in the iPhone 5S. When it was announced, it was found that Android 64-bit smartphones aren’t planned in the near future. But now they had quickly and dramatically to make change in their plans. It effects so far: some smartphones were postponed for the third quarter of 2015, because they planned to use of the yet unpublished Snapdragon processor 810.
Other manufacturers had to seek alternative chips and resolve issues by compatibility. In other words, forcing competitors to take the 64-bit path, Apple forced them to use weaker processors and weakened the resources that they threw on the competition.
Another example - Apple invests the components in stocks in advance and more, buys it before years and in fact is seeking a monopoly on their supply. It firstly, cheapens the most details of Apple, and secondly restricts the access of new technologies. Let’s take the fingerprint sensor. Motorola has planned to use of it on Nexus 6. But Apple has demonstrated its sensor - it bought the best supplier of sensors, - recognized head of Motorola, Dennis Woodside. And the components seemed worse in weaker suppliers.
Apple has also invested considerable money in stocks of synthetic sapphires, it was the first in line for touch screens, phones and even the transportation of parts by air has been booked in advance, forcing competitors to use a slower land and sea routes. If you are competing with Apple, you will not be using the best ingredients, because Tim Cook has reserved them years ago, when was in charge of the supply and production, says Spence.
But, as Apple successfully operates in the premium segment of the market, it has more and more money on it to strengthen its position - at the expense of supply, development, best staff and customer loyalty. And thus it forces competitors to play the game, which is beneficial for it.