Info-Tech Research Group Inc.

The Apple Effect

Who would have guessed when Apple introduced the original iPhone in 2007 that it would become the most valuable technology company in the world a mere 3 years later. That’s right, Apple is more valuable than Microsoft, Google, IBM, Cisco, HP, or any other tech company you can name. In fact, my math tells me Apple is the second most valuable company in the world right now behind only Exxon Mobil. More valuable than Wal-Mart, Coca-Cola, Berkshire Hathaway – again, any other company you can name.

How did this happen? How did a company that was completely failing 10 years ago reinvent itself in a way that made it the most valuable tech company in the world? I’m going to tell you, but I understand there are a lot of Apple naysayers out there – I was one of them. Until 2008 Apple was a mere blip to me. A nothing. An annoyance. When I laid hands on an iPhone 3G I realized that the world had changed. I had to have one. It was an immediate and overwhelming reaction I couldn’t resist. It was my gateway drug. I went out that day and bought one. I loved it – it was a mobile device like I’d never seen or used. I had an HTC Touch running Windows Mobile 6.1 at the time, and I thought that was pretty cool when I got it. Once I laid hands on an iPhone it became an abomination – I hated it.

As I said, the iPhone 3G was my gateway drug. Since then i have had an iPhone 3GS, now an iPhone 4, a 13″ MacBook, a 15″ MacBook, and an iPad. My wife bought a 15″ MacBook, a 21″ iMac, and she too has an iPhone 3GS. Did I drink the Kool-Aid? Clearly I did, but why? How does a 20 year PC user change his stripes and buy into Apple? It’s really pretty simple – the industrial design, engineering, and user experience are vastly superior to anything else I’ve ever tried – and I’ve tried pretty much everything.

Apple hardware is fantastic – it’s stunning in every way. It’s taken 3 years for other hardware manufacturers to catch up, but they still haven’t caught up in terms of OS, software, and user experience. I think it’s all about apps, and Apple clearly rules in this respect. Even with the complaints about the App Store and it’s nominal shortcomings, Apple blows all competitors out of the water. iOS is far and away the best mobile OS on the market. Is Android coming along? Sure it is. Will HP make something of Palm’s WebOS? Count on it. Nokia’s Symbian is out of the running, Windows Phone OS is questionable right now – and in my opinion too little, too late, and RIM is struggling to keep up with the usability of iOS.

Steve Jobs is a super-smart guy. He knows what’s going on. The line between personal and corporate mobile devices is blurring – and it’s happening very quickly. I can’t keep up with the requests from clients asking for help managing iOS devices. Thankfully, they have licensed Microsoft ActiveSync so you have a pretty decent mobile management suite built in to your Exchange/Active Directory infrastructure.

One thing IT leaders need to understand – and they need to understand it now – is that Apple isn’t going away anytime soon. Get used to it, figure it out, and embrace it. Info-Tech will help along the way with some important research coming in the next couple of months.