iOS losing enterprise market slowly.
Honestly, this one should be considered predictable. Some may not see it as so, as evidenced by articles such as the linked one (by virtue of it existing, not based on its content).
Anyway, Apple's problem is exactly the fact that they are a luxury brand. When Apple "creates a new device category" as it did with the iPhone or the iPad, they start out well ahead of the competition. In fact, the competition doesn't even really exist. At that early point, you're not just getting a luxury item, you're likely getting one that is vastly superior to anything on the market, or that will be on the market for some time. It is an easy investment for an enterprise. You can also anticipate that if you truly support a BYOD device of that sort in your enterprise that most of your employees that buy one, will buy the trendsetting device.
Over time many of those points diminish. Apple gets lucky here because enterprises move slowly, so being the first in the door on a wide scale will buy you a ton of time. It has been years since Apple has had 72% in the phone market and a long time as well since they had that much of the tablet market as well.
And it has been even longer in each category since the associated Apple product held tangible benefits for the end user. And yet, all the while, Apple's prices don't ever budge, making it iteratively more difficult to justify the purchase of new Apple products. Yes, the loyal will always buy Apple products. Those looking for status symbols are in for the long haul as well. But the average consumer trends away from Apple products due to cost and lack of value and the BYOD market follows slowly after.
It is worth noting that Apple doesn't really have the same problem in the laptop/desktop market. And the reasoning is fairly simple. The life and upgrade cycles are very different. Some people upgrade phones every year, most every 2-3 and most on contracts with subsidies. On the software side their competition is changing much more rapidly.
With laptops the story is much different. People typically upgrade laptops less often than phones, and a desktop even less frequently than that. Over a longer period the up front investment is less important. Also, because there aren't any subsidies, most of these purchases are already within that range where the average person would consider it a "large purchase". When people feel like they are investing a lot already, it is easier to convince them to spend more. Especially if there is real or perceived value. From spending time in computer sales, I can tell you that it was a LOT easier to sell extended warranty on a $2000 laptop than a $200 one. Apple is a luxury brand and people feel they get more value whether or not any is truly there.
Phones are expensive, but subsidies bring many phones, including many flagship phones into the more affordable range of the market, in some cases even making "free". At lower price points it is harder to up sell based on value. People don't automatically buy into perceived value, or may not even care.
And lastly, laptop OS's and software aren't really progressing at all. Most of the dev money is on mobile, and desktop OS interfaces (aside from Windows 8) haven't really changed in years. And since Microsoft made their UX changes at a low point for their popularity it had little impact and now they are bouncing back to a more traditional UX. As a result, people don't feel like they are missing out on anything if they stick with Apple there.
The erosion was slow to start. People are passionate about Apple products. But, they aren't sustainably priced. Now that the slide has started, I expect them to fall fast and faster over the coming months to be replaced by Android.
Anyway, Apple's problem is exactly the fact that they are a luxury brand. When Apple "creates a new device category" as it did with the iPhone or the iPad, they start out well ahead of the competition. In fact, the competition doesn't even really exist. At that early point, you're not just getting a luxury item, you're likely getting one that is vastly superior to anything on the market, or that will be on the market for some time. It is an easy investment for an enterprise. You can also anticipate that if you truly support a BYOD device of that sort in your enterprise that most of your employees that buy one, will buy the trendsetting device.
Over time many of those points diminish. Apple gets lucky here because enterprises move slowly, so being the first in the door on a wide scale will buy you a ton of time. It has been years since Apple has had 72% in the phone market and a long time as well since they had that much of the tablet market as well.
And it has been even longer in each category since the associated Apple product held tangible benefits for the end user. And yet, all the while, Apple's prices don't ever budge, making it iteratively more difficult to justify the purchase of new Apple products. Yes, the loyal will always buy Apple products. Those looking for status symbols are in for the long haul as well. But the average consumer trends away from Apple products due to cost and lack of value and the BYOD market follows slowly after.
It is worth noting that Apple doesn't really have the same problem in the laptop/desktop market. And the reasoning is fairly simple. The life and upgrade cycles are very different. Some people upgrade phones every year, most every 2-3 and most on contracts with subsidies. On the software side their competition is changing much more rapidly.
With laptops the story is much different. People typically upgrade laptops less often than phones, and a desktop even less frequently than that. Over a longer period the up front investment is less important. Also, because there aren't any subsidies, most of these purchases are already within that range where the average person would consider it a "large purchase". When people feel like they are investing a lot already, it is easier to convince them to spend more. Especially if there is real or perceived value. From spending time in computer sales, I can tell you that it was a LOT easier to sell extended warranty on a $2000 laptop than a $200 one. Apple is a luxury brand and people feel they get more value whether or not any is truly there.
Phones are expensive, but subsidies bring many phones, including many flagship phones into the more affordable range of the market, in some cases even making "free". At lower price points it is harder to up sell based on value. People don't automatically buy into perceived value, or may not even care.
And lastly, laptop OS's and software aren't really progressing at all. Most of the dev money is on mobile, and desktop OS interfaces (aside from Windows 8) haven't really changed in years. And since Microsoft made their UX changes at a low point for their popularity it had little impact and now they are bouncing back to a more traditional UX. As a result, people don't feel like they are missing out on anything if they stick with Apple there.
The erosion was slow to start. People are passionate about Apple products. But, they aren't sustainably priced. Now that the slide has started, I expect them to fall fast and faster over the coming months to be replaced by Android.
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