Apple’s Popularity and Networks
In class we discussed the spread of popularity of a product with network effects. The strategies we discussed to get a product to reach new clusters in a network included increasing the quality of the product and making aspects of the product more appealing to a specific cluster. Inspired by an earlier post on this blog, which was entitled “Network effect beneficial for the iPhone” and posted on November 14, 2015, I would like to discuss how Apple found success from its founding and continues to excel in a very competitive market.
Steve Jobs, one of the original founders of Apple Computer, is credited with bringing sleek designs to technology. He seemed to have filled a structural hole of sorts in a network of innovators, exploring the forefront of design and visual arts and bringing what he found back to the science- and technology-driven Silicon Valley. Jobs insisted on aesthetically pleasing exterior designs of Macintosh computers and a simple, intuitive user interface. Additionally, Jobs’ experience with calligraphy (from a Reed College course he audited after having dropped out) brought the unprecedented typography of Apple’s computers.
All of Apple’s innovations in design allowed the company to appeal to a large but relatively untapped cluster of people, the general public. The personal computer industry was quite young, and computers were strange, somewhat intimidating boxes. Thus, Apple, with its simple design, was able to find a strong foothold with users who had previously found computers unapproachable, unusable, or just plain ugly.
Of course, Apple’s continuing success is owed to more than its iconic design. Today, Apple-exclusive communication and sharing services such as FaceTime, iMessage, and iCloud certainly add to the network effects that attract consumers. For example, if a person has a lot of friends using an Apple platform to chat or share pictures, that person will feel more inclined to purchase an Apple product to keep up with their friends. Apple has been criticized for the price of its products. Nevertheless, its products remain popular, suggesting that consumers find the benefits of the accompanying design and communication services to outweigh the price of Apple products. Apple will probably continue to succeed if it follows its own formula of innovation and design.
The inspiring blog post: https://blogs.cornell.edu/info2040/2015/11/14/network-effect-beneficial-for-the-iphone/
Sources:
http://news.stanford.edu/news/2005/june15/jobs-061505.html