Over the past three years I have been seeing the systematic disruption that the iPhone/iPad and the related Android devices have done to the devices market. Wherever there was a screen people are increasingly using the iPhone/iPad/Android device.
Today I got into a discussion about this with somebody that I met and I think he put it beautifully in perspective. He does a lot of work in the Audiophile class equipment and he described a company in europe that used to build a $3000 device that will allow an audiophile to construct their own user interface. So a user could buy their mixing hardware which had large touchscreen’s, and software that would allow a user of the device to build custom user interface stations. Their device had a cult following in the market place…and then came the iPad…
That company today has ditched their complete hardware offering and sells a $50 app, that does the same work, but on an iPad. $50 is a pretty expensive app considering a lot of the apps cost way less. But they are the best in what they do, and customers pay.
There are two takeaways for me…the first…
It would have been gut wrenching but they bit the bullet and did it quickly. It takes a lot to do that, actually cannibalize your own best seller product for something that will sell at much lower price. I’m sure it would have hurt, and they obviously have nerves of steel to take such a huge step.
the second…
They actually make more money from their $50 app, as compared to their $3000 device. Their gamble paid off. They actually wiped out their competition, and kept the brand value.
I expect what they did was take a good hard look at the situation and changed, along with the game…and as a result, changed the game!
Samyeer Metrani 