Copying Apple and Failing

August 28th, 2012

Eli Dourado:

This does not look like a market in which Apple’s competitors are successfully copying it. It looks like a market in which Apple’s competitors are trying to copy Apple, and failing.

True, but Samsung’s become the most successful Android licensee in the market, at least in part due to copying Apple. While they haven’t succeeded in undermining Apple’s success, they have succeeded in carving out a very nice place for themselves in the market. I don’t think that’s “failing.”

It does show, however, how successful Apple’s strategy is. Apple’s intent is to dominate the market by releasing new, better products at a very rapid pace, and releasing new products that re-define the market. As a result, competitors have to play on their terms, which inherently favors Apple. As long as Apple is the primary innovator within computing (and is willing to undermine their existing businesses to do so), they can continue to be successful.

(Via Alex Tabarrok.)