Why it is hard to surpass Apple
“Always being imitated, never to be surpassed “, in fact, this fabulous description is describing Apple in U.S. Now Apple continues to write its legend. In July 2008, Apple introduces an applications store online—App Store, which is so successful that attracts a large number of imitators again. These imitators not only including Nokia, RIM and other terminal manufacturers, but also includes the software vendors such as Microsoft and Google, as well as China Mobile and other telecom operators.
The construction of 3G network and the popularity of smart phones have made it possible to use more cell phone applications, and the Consumers’ demand for applications has increased greatly. In 2008, the sale of cell phone application store is 10 billion U.S. dollars, while in 2014, According to what Juniper Research, a consulting firm has estimated that this market will reach 25 billion U.S. dollars. Apple’s applications have been downloads more than one billion times, and the total number of its applications is more than 50,000 in less than one year after Apple’s application store is on-line. It is estimated that the sales of application store will at least reach 365 million U.S. dollars this year. Also, application store’s success has promoted the sales of cell phones greatly. The sales of a new style cell phones— iPhone 3GS is more than 1 million on the first weekend after them entering the market, and other cell phone manufacturers which is impacted by the financial crisis indeed envy this. Thus, for a time, many companies feel the tremendous business opportunities and swarmed into this industry. So, why Apple’s application store succeed? Can the Large numbers of followers copy the Apple’s legend? To the application manufactures, their success depends on two important factors: the developers and users’ scale. Only a large number of developers can ensure a rich supply of applications, then it can attract a large number of users. On the other hand, only a large number of users who want to buy these applications and contents can ensure the profitability of developers. In fact, Apple has laid the foundation for application stores’ successful just from supplying and demand. As to the demand, Apple has trained consumers’ consumption habits to buy software and content by using iTunes platform and with the help of the beautiful and faddish iPhone, Apple has attracted a large number of loyal fans.
When we just entering the field of MP3 player, Apple have cooperated with the upstream content providers and establish iTunes music store to sell music and video products to end consumers. Then Apple extends this model to cell phones, and it integrates the application software stores with the iTunes. The users of iPhone can download mobile content and applications easily just like buying music with iTunes before. It can be said that most users choose iPhone just because Apple can provide rich content and applications, and they are used to buy these content and applications through iTunes. According to the survey, for iPhone users, the rate of browse cell phone news, mobile music and other applications is 2-4 times higher than the users of other smart phones. Therefore, when opening the application stores, Apple already has a number of high-quality content and application consumers. In contrast, although about 50 million cell phone users can use Nokia’s software store in the world, however, the proportion which will actually consume is much smaller. As to the supplying, Apple attracts developers through various means actively to ensure the rich supplying of the applications. To become a developer of Apple, one just should pay 99 U.S. dollars and then he can upload an unlimited number of applications and price these applications themselves and can get 70% of the sales. While, in contrast, Microsoft’s developers can only upload 5 applications after paying 99 U.S. dollars per year; the developers of RIM need to pay 200 U.S. dollars. In addition, Apple’s unique culture of innovation has attracted many Apple fans develop their own software and upload them to the application software store. When an engineer of Sun Microsystems sitting on a sofa in his spare time, he developed a game called iShoot with beverages in his hand, and this game is so popular with consumers that bring him 70 million monthly and the highest daily income is 30,007 1000 U.S. dollars. Later, he simply resigned from the company and began to specialize in the development of iPhone applications. Ended in June 2009, Apple application store has about 13,700 developers and can provide of nearly 300 new applications average daily. And through the efforts in cultivating consumers and attracting developers, Apple has successfully created a virtuous circle for application stores’ development.
Then, can the later participants obtain success like Apple? The answer may not be optimistic. Relative to Apple, RIM and other companies which are aiming at the segments of market, the company entered Later are often target the mass market, and the demand for the capability to integrate applications and contention and operate platform is higher than before. For the terminal manufacturers, Nokia has the largest market share in smart phone operating system Symbian and smartphones users, but have little salient competitive in games, music, business applications and so on, and in its end users, the ratio of having the habit of consuming applications and content is not high. Although Google has gotten a lot of support from the terminal manufacturers and operators by opening its Android system, its current number of users is still small and only 15-20 new applications are added every day.
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