The company with the best marketing skills need not be the best technology company. Similarly, the company with the best technology need not be most marketable company. This has been well illustrated in the case of Apple Computers. The company, which took the PC world by storm with its innovative and technology superior products, changed the computing world forever. But it still could not create a whirlwind in India.

Apple's products are known for their quality and features -not just out-of-the-box ones but real exclusive features. Today, it has many industry leading products falling under the broad categories of desktops, notebooks, servers and digital life. In fact, they are just known by their names such as MacBook, iMac, Mac mini, Power MacG5, AirPort Express, iPod and more.

Apple products are proprietary in nature and have end-to-end closed models. It remains a niche player as compared with Microsoft's open-ended technology strategy.

Apple products are perceived as innovative, trend setting and lifestyle gadgets. The close integration between the hardware and software provides that extra phenomenal consumer experience which is its core strength. Its PC series are all high-value products and have been positioned in the market at an
entirely different level.

Where Apple Lost Its Shine

Its products are proprietary in nature and have end-to-end closed models It is a niche player when compared with Microsoft's open-ended technology strategy A very closed company, not agile to changing business needs and dynamics Inaccessibility to the public, press and the channel Has a policy of not licensing its operating system and lack of tie-ups for third-party arrangements

Why Apple failed to click?
Though, Apple had quality and innovative products with it, the company could not become the leading PC brand, in terms of unit shipments, in the market till date. Though several reasons have been attributed to it, the chief among them is the company's policy and its approach towards business.

Yes, Apple is a very closed company and not agile to changing business needs. It is a company not available to the public, press and channels, while competitive brands are throwing open all their doors and windows to the market.

"One of the obvious reasons for Apple not being able to capture a bigger market share could be attributed to its policies. The policy of not licensing its operating system and lack of tie-ups for third-party arrangements have stunted Apple's fortune," said Sumeet Raina, Director, Radius Systems.

"Due to its end-to-end closed model strategy with concentration on niche markets, Apple has not been able to capture a big market share as compared to Microsoft. Apple enjoys a good mind share only in some focused market segments, where it is well known. Its proprietary technology and OS is a cause for concern," opined Rajeev Anand, DGM, Neoteric Infomatique.

Agreed Sanjeev Ahuja, MD, RS Two Three Two, who said, "Apple has got a fantastic product line with equally good technology. People love these products and even channel partners would love to sell it. But, the company has not done enough when it comes to advertising and marketing its products effectively."

Slowly catching up
Although, Apple does not have a big track record and growth trajectory since it came into business in 1976, the company has gained some market share over the last five years. Earlier, owing to various reasons-be it company policies, product pricing, non-licensing of its operating system and the loss of key people-Apple had a tough time in business. But now, the company seems to be addressing these inadequacies and making a come back in the market.

"Despite a few set backs in the last 30 years, Apple has grown as one of the most powerful brands in the world. The general mindset of the market has always been to compare Apple with brands like IBM, HP-Compaq, Dell or Sony etc. The visibility and positioning of Apple has always been high equating with much larger and older companies dealing with products/services for a wider section of the market.

"Apple is the only company in the world which can offer finished products just within six months of the idea being conceptualized. It has been proving this fact by announcing new products and technologies every quarter. It has been capturing its share primarily on its own innovation, technology and its user-friendliness and not just on products based on borrowed technology. Apple has always been addressing the needs of a niche market and cannot be compared with general PC
makers," he added.

The iMac difference
When Apple started to reclaim its position in the market, iMac indeed paid rich dividends towards this cause. iMac changed the way people look at a computer. It has revolutionized the market in true perspective. It transformed a computer from a mere gray or white box to an elegant machine.

Talking about the Apple turnaround Arun Nath, Director, AnyThing Mac elaborated, "After getting an innovator Steve Job back on board in 1997, Apple launched iMac in 1998 and iPod in 2000. With the introduction of these products Apple has bounced back in a big way."

"The launch of iMac was equated to the launch of Macintosh 20 years ago and it was like a blessing to Apple loyalists. The iMac has evolved more than five times since its inception 10 years ago and no competing PC maker is able to offer a similar product till date. Today, iMac is a digital lifestyle product used in the drawing room of every elite household," claimed Subramanian.

Rajesh Narang of Ample Technologies pointed out an interesting fact. "Many of iMac buyers are women because its aesthetics appeals to them very much," he said.

Latest developments
Recently, Apple announced a slew of initiatives to regain its rightful place in the PC business. Some of its recent announcements included the launch of Intel-based systems for the very first time; roll out of dual-boot products which can work on both Windows and Macintosh platforms; setting up support center in India; strategic tie-up with HCL Infosystems to distribute their desktops and iPods, and finally, reviving its channel policies. All these can make Apple an industry leader in the coming days, say the company's resellers.

"Currently, Apple India is in the process of revamping its entire channel structure. This includes expanding the channel base, flexible policies and after-sales services in B and C class cities. These strategic initiatives would help Apple secure significant market share in consumer, SOHO and SMB segments. iMac mini and MacBook are set for big growth," said Anand.

The channel can expect more convergence products to come from Apple. "With the recent announcements (of Intel-based machines and dual-boot systems), customers now have the best of both worlds - the technology of Mac bundled with the well known Windows and Intel platforms," informed Nath.

Overall, the channel is very optimistic about Apple products and its success in the market. The future is bright for Apple! 

S GOPIKRISHNA

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