Apple Money

How Does Apple Stay Ahead Of The Competition? Lots Of Cash.

Posted in iPad, iPhone on 05/07/2011 by J. Glenn Künzler

0

Have you ever found yourself wondering how Apple can continually manage to bring out products so ahead of the curve that their competition can only attempt to play catch-up? It turns out that the answer, in part, is simply having a massive bank account.

According to a very interesting post on Quora, Apple uses its massive pool of money to shop for and invest in new technologies so that they come to market years before they would otherwise have done so. Their strategy is to use cash (rather than credit) to gain exclusive access to various technologies, leaving their competitors in the dust.

By getting access to technologies long before its rivals are even aware of them, Apple has an automatic competitive edge that lets them release products that are more than cutting edge – they’re far ahead of the curve.

Even the touch screen technology on the iPhone, the article elaborates, was successful not just due to software, but to hardware advances and touch screen technology that Apple had early access to, unlike their struggling competitors.

Even Apple’s precision aluminum milling technique that they use to produce incredibly thin and light laptops like the MacBook Air, which is one of the thinnest laptops in its class, or the MacBook Air, which is one of the thinnest and lightest computers in the world, is a result of strategic purchasing, exclusive access, and then receiving a significant discount on the technology later on down the road.

Even when and if their competitors do eventually catch up to Apple, by that point Apple is already prepared to release the next wave of pre-purchased cash-backed new technology to make them stumble once more. Additionally, using cash in this manner enables Apple to secure far better prices on their components than the competition.

In short, it is Apple’s strategic use of cash and careful shopping of new technologies to invest in that drives them to the top of the industry – that’s the reason why nobody can manage to produce a sub-$500 tablet that’s capable of competing with the iPad. The secret, in short, really is that they are using tech from the “future”, or that wouldn’t have been available for years without Apple’s intervention.

While interesting, the Quora article focuses more on hardware than I think is appropriate. While the hardware and components are certainly important, specs alone don’t make a great product – you need innovative software, mind-blowing marketing techniques and incredible industry support as well.

Basically, two parts cash, one part futuristic technology, and one part innovation all add upp to the Apple products you know and love today.

Your thoughts? Sound off in the comments!



J. Glenn Künzler

Author

J. Glenn Künzler

Glenn is Managing Editor at MacTrast, and has been using a Mac since he bought his first MacBook Pro in 2006. Now he's up to his neck in Apple, and owns an old iBook, a 2012 iMac with an extra Thunderbolt display for good measure, a 4th-generation iPad, an iPad mini, 2 iPhones, and a Mac Mini that lives at the neighbor's house. He lives in a small town in Utah, enjoys bacon more than you can possibly imagine, and is severely addicted to pie.