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Monday, September 20, 2010

Apple & Customers

Apple seems to be defying the laws of the open economy. While everyone is racing towards open platforms, open networks, and software that is accessible from multiple device types, Apple has managed to keep pretty much everything except it's api's closed. 

Every year I hear about how eventually this approach will catch up to them. But I'm not sure it will. When we become too attached to our opinions, we tend to forget where they came from. For example in the case of network effects, it's not a question of whether there are network effects or not, we know there are with the app store. It's not a question of whether apple is reaping the reward of them or not, they clearly are. It's simply a question of whether vastly larger network effects like those that will likely be garnered by the android platform are truly beneficial.

Apple provides a cleaned up product for a populous that is not rife with techies. The early adopter, though essential in every way to the growth of technology, is not the moneymaker. Apple has a wealthier client base that purchases more, and is happy that there's a guardian at the gate. The network effects are large enough to make any developer worth their salt build software for apples platform. Isn't that all that they need? Plus, the customer that uses the apple product gets the benefit of a watchdog ensuring that what they buy is safe and will not ruin their phone or iPad. Isn't that worth something?

At the end of the day, customers like having product filtered before it reaches them. They pick easier amongst 20 things than amongst 2000. Maybe Apple's got the right idea. They're simply a modern merchandiser. What do you think?

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