Tip To Microsoft and Verizon: Think Better. Much Better. 26 comments
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Two news items Wednesday caught my eye: first, that Microsoft had developed two new lines of Zune music players to compete with the iPod, and second, that Verizon was introducing a touch-screen phone made by LG in November to compete with the Apple's/ATT's iPhone. And while I admire the hard work of both companies, I"m afraid I have bad news for both: both products are doomed. Why? Because they are too much like the products they are trying to replace.
See, the problem with imitating a market leading product is that you give the prospect no reason to buy your product instead of the lower-perceived-risk dominant vendor. Said another way, marketing a me-too product, by its very nature, increases awareness of both the new product and the market leader. Unless the upstart company provides significant -- I repeat significant -- differentiating value to the buyer, the competitor ends up promoting the market leading product as well as their own. And since the market-leading product already has established its value proposition before the competitor showed up (if they hadn't, they wouldn't be the market leader), they are more likely to make the sale.
For example, take a look at Engadget's comparison chart between the new Zunes and the Apple iPods they compete with. The striking impression you get from the table is that the products are nearly identical, with similar list prices, capacities, form factors, and colors. With so many items in common, how can Microsoft claim that the Zune is so much better than an iPod? The anwser is that it can't, at least not in a simple and easy to understand way.
Verizon has more in its favor, since its network is itself a differentiating factor to its prospects. But I challenge any Verizon salesperson to successfully sell the new Voyager handset without uttering the words, "It's like an iPhone, but it has...." The product is just so derivative and similar, that comparisons will be irresistible to most ordinary people, and that comparison will just continue to validate the iPhone's lead, even if the LG device sells well.
Back in the olden days of computing, there was a mantra that said that to successfully compete with IBM (the market leader at the time), your product had to be 10 times better or you'd never get in the door. Today, too many companies are ignoring that mantra and trying to sell "just as good" instead. Regardless of how necessary it is for those companies to compete with the market leaders, me-too isn't good enough. To win, they have to be better -- lots better.
Full disclosure: the author owns Apple stock.
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This article has 26 comments:
Umm--no. 1) Verizon isn't GSM 2) the Verizon Phone won't have a CREDIBLE web browser. 3) The LG's have already shown that they are very feature-thin compared to the iPhone.
"I beleive that the Voyager will outsell the apple by a margine of at least 2 to 1...." Bet ya they don't. Let's say US sales in the first quarter of '08 (assuming Verizon is putting these out within the next month).
And as far as LG's sales, yes they had a huge advertising campaign (remember the "different flavor's of Chocolate"? Lord help me.). Plus, Apple has had just 1 quarter as their baseline, and it will increase. The Chocolate has been out > 1 yr. The iPhone is more expensive (and is MUCH more functional / desirable) and still beat out LG, so I'd say that's a VERY impressive start. The Voyager outselling the iPhone 2:1? Give me a break you frigtard.
You said, "Now I may not have to and I can still get an I-Phone like phone and the LG will certainly be cheaper."
Did you just say you want an "iPhone like" phone?
There will always be people who go for those fake Rolex watches and are sure no one can really tell the difference.
P.S. the LG phone is so much like the iPhone that it is also reported to be the same price.
"iPhone like" . . . . I'm on the floor laughing!
This LG is good news for Apple. Simple as that.
And a point you didn't make. Sitting next to the iPhone, the LG is butt ugly.
Other phone companys have been arround for how many years and could not come up with something like Apple did ? Shame on them !
And dont forgett if for some reason you might not like the iphone or ATT ... its a free country ! Nobody is forcing you to buy one !!!
Best web browser available.
Touch screen iPod with coverflow.
Camera.
Landscape mode for widescreen movies, coverflow, etc. which rotates with the phone.
iTunes store available for downloads straight to the phone which syncs back to iTunes on your Mac or PC.
Bluetooth and Edge networks swap automatically to the stronger of the 2 signals.
Why carry a Smartphone / iPod / Camera / web browsing device with you when you can have 1 beautiful sleek device that does it all. (Ugh -- I need to work at an Apple store.)
If you want a phone that looks like a bar of soap and has a screen half the size of iPhone, with a tenth of the capability, anyone is perfectly welcome to stay devout Verizon fans. Apple faithful knows the truth, and it's pointless to tell it to anyone that doesn't want to listen, but if you're reading this now, my point got across regardless. Thank you.
funny how being 'better' never worked for Apple on the PC side.
Apple isn't 'the market leader' in phones, they just get a lot press from dickwads like this with apple stock. That LG will sell tons of units.
And zune, well, thats just about as retarded a name as is possible to invent.
You need to see "Triumph of the Nerds" (PBS). Also, read the US vs. MSFT DoJ judgement from about 2000. MSFT was never about PRODUCTS; it's always been about monopoly TACTICS.
On another note, I believe Carl is right. Many companies built mp3-players that were just as good or better than the iPod, yet most people still bought iPods. Why? Because Apple has superior design, engineering and a superior brand and somehow, their products have high emotional value. So making something just as good as Apple, just won't cut it.
It's not that iPods and iPhones don't have their flaws... but every product has some, and I'd always take the extra benefits of owning an Apple product over these minor problems.
On another note, I believe Carl is right. Many companies built mp3-players that were just as good or better than the iPod, yet most people still bought iPods. Why? Because Apple has superior design, engineering and a superior brand and somehow, their products have high emotional value. So making something just as good as Apple, just won't cut it.
It's not that iPods and iPhones don't have their flaws... but every product has some, and I'd always take the extra benefits of owning an Apple product over these minor problems.
Anyone in the market for the Voyager will likely feel much more socially comfortable either buying an actual iPhone or just an LG Chocolate phone or something.
This is the single most important factor in why 'visual knockoffs' *never* win. *Ever*.