Anthony Frausto-Robledo, EIC ([email protected])

5 Jan 2005 - (originally written 8 July 2004)

 

Opinion: Apple needs a New 'Mac LC' for Market Growth - Part 2

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A Bi-Vector Strategy Wrapped Around Brilliant Product Editing

Apple has got to realize that it can't win any significant market share when its entire product line is shaped and edited around that lower right hand box! (increasing profits via increasing price) The company needs a dual-vector strategy built around some judicious product definition and editing strategies. Apple can gain 800,000 more units per year if it wants to get serious about it. (see Half of Potential Mac Customers Choose Apple)

1990's Mac LC

To do this Apple needs to revisit the historical circumstances that formed the success of the Mac LC product line in the early 90's and formulate a parallel strategy for today's market.

Learning from the LC

The Mac LC was a very different computer than today's iMacs and eMacs. And it was substantially different than Apple's top of the line Quadra's as well. Some hallmarks of the LC strategy and how they address criticisms of Apple's "all-in-one" designs include (see table):

The Mac LC series were also inexpensive 32-bit color computers, although the first two versions ran on 16-bit buses. Still, I can remember sales people telling folks that Mac LCs were 32-bit generation computers while Windows/DOS machines where only 16-bit. Apple clearly crippled some aspects of the machines so they would not cannibalize their more expensive pro gear. I think there is a lesson here for Apple to learn from.

The Trojan Horse and Lessons in Camouflage

I believe that the Macintosh brand name is far weaker in the minds of consumers than the Apple brand name. Don't get me wrong, I love the name Macintosh! But let's be honest about something here. Isn't this the name of a brand that lost a high-profile war with Windows? Part of the reason why the iPod has been so successful with a bunch of users who compute with Windows is because the product isn't a Macintosh. It has an entirely different name, yet it resonates the core values of Apple without the lost war attachment.

New iPod mini family- courtesy of Apple

It essence Apple is using camouflage with the iPod. The obvious goal is: for all iPod users to eventually move to all Apple products. Notice that this goal so stated doesn't have anything to do with the name Macintosh -- or at least it doesn't have to.

Apple is slowly introducing products that Windows users can use. This is often and correctly called the Trojan Horse strategy. It's a brilliant strategy so long as Apple appears to not care about whether or not people have an interest in Macintosh or not. In other words, it will work so long as Apple offers these products as true gifts to Windows people. People don't need to have an interest in Macintosh for Apple's computer market share to go up. They need to have an interest in Apple.

Next Page > Targeting the New Apple Customer

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