Stratechery Apple's Shifting Differentiation
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Nov 11, 2020 Discover the fascinating world of Apple’s integration of hardware and software, which not only enhances user experience but also supports its premium pricing strategy. Learn about Apple’s remarkable journey from struggling in the 1990s to dominating the tech industry, focusing on innovations in software. Delve into the impressive performance of Apple’s in-house silicon compared to Intel, and explore how these advancements are shaping the future of product efficiency and battery life in a competitive market.
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Apple's Shifting Differentiation
- Apple's differentiation strategy has shifted over time.
- It initially focused on hardware and software integration, but the balance has changed.
Apple 1.0: Software Over Hardware
- When Steve Jobs returned, Apple's computers were unremarkable and expensive.
- Jobs simplified the product line and focused on the iMac's design, making hardware the key differentiator.
OS X and iLife
- OS X and iLife made software a key differentiator for Apple.
- Users bought Macs for the software, despite inferior hardware, leading to the Intel switch.