Tuesday, July 9, 2013

(Business) Apple: Release Of Ipad 5 Apple’s Saving Grace?

With the rumored news of Apple looking to release the Ipad 5 and the iPad Mini  at a later date, it look like the tech giant is looking to make the second half of this a better one than its first.  According to the Cult of Mac’s Killian Bell, the source of this news comes from within the company’s supply chain but warns that this rumor  as with all rumors  should be taken with “a health helping of salt”[1]

However speaking in terms of strategy, a new product release for the company couldn't come soon enough. With competition heating up in the smartphone and tablet market and Apple experiencing a slight decline of its share price, a product release, or even the rumor of one, could take the pressure off. The iPad and iPhone maker have invested heavily in marketing plunging over half a billion last year as has its rivals such as Google and Amazon but despite an increase ad spend, Apple are miles ahead in ad spend[2].  

However the increase in marketing between 2011 and 2012 seems to reveal a larger malaise that has become more apparent of late that being Apple may be losing its famous ability to innovate it way out of trouble. While it is safe to say that Apple chief strength has been its ability to market its products, it has found it difficult to market itself. There is nobody on the planet that does not recognize the iconic Apple logo but people are starting to forget what that logo stands for. The strength of Apple had over its competitors was ability to sell its values to the point that it became more than a company simply looking to make money.

Apple have made some of the most aesthetically pleasing products ever to grace a marketplace but never really made the best products as the faults and glitches of  it various products are infamous from the Ipod’s infuriatingly low battery life to the iPhone’s inability to run certain apps. In Simon Sinek's excellent book,Start With Why: How Great Leaders Inspire Everyone To Take Action, Sinek explains that the power Apple had was that it addressed the question of ‘why should I buy’ first before telling consumers what to buy[3]. Apple, for Sinek proved beyond doubt that “people do buy what you do, they but why you do it”[4]. Apple still has this power but with death of Steve Jobs, the man who understood Sinek’s point best, Apple has largely not used its ability to inspire a purchase.

However with the rumored release of the iPad 5, maybe Apple can tap into their ability inspire a purchase once more.


[1] K.Bell, 2013,  New iPad To Launch This September, But New iPad Mini Could Be Delayed, http://www.cultofmac.com/234627/new-ipad-to-launch-this-september-new-ipad-mini-could-be-delayed-rumor/
[2] J. Del Rey, 2013, Google, Amazon and Apple Pump Up Ad Spending as Tablet Wars Heat Up, http://allthingsd.com/20130708/google-amazon-and-apple-pump-up-ad-spending-as-tablet-wars-heat-up/
[3] S.Sinek, 2013, Start With Why, London, Portfolio Penguin
[4] Ibid

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