Nokia, Motorola, Sony-Ericsson and BlackBerry-maker Research in Motion were all victims of disruption. During the 1990s and 2000s, they shepherded the cell phone during its period of takeoff into ubiquity. Then, in the last five years, they all lost their leadership positions and are now on the verge of irrelevance. The common culprit was the 2007 launch of Apple’s iPhone.
Why has the iPhone confounded both industry rivals and proponents of disruption theory alike? Because they have had a one-sided view of disruption—enough to make them blind to its true nature.
The main proponent of disruption theory is Clay Christensen, who invented the term. His theory is that disruption (that is, the failure of otherwise successful companies) comes when those companies miss important innovations precisely because they are unappealing to their primary customer base. That provides an opportunity for new entrants to leap onto those technologies and ride them through improvements—until they actually end up competing head-to-head for the customers of established firms.
Those of you with a buggy button on your iPhone 5 now have another year to get your phone repaired or replaced.
iPhone 5 users who notice that the on/off button — dubbed the wake/sleep button by Apple — isn’t working right can get it fixed for free until March 2016.
Apple initially announced the replacement program in April 2014. The company had discovered that the button, which is found on the top right edge, would stop working, either permanently or intermittently, on some iPhone 5 models made through March 2013.
Apple’s product launch event early this morning had one nasty, unannounced surprise for Australian consumers: iPhone prices, across the board, have increased by 15 per cent.
Apple’s iPhone 6 and iPhone 6 Plus range, and the iPhone 5s have all increased in price by around 15 per cent.
It’s likely a response by Apple to the deterioration in the Australian dollar relative to foreign currencies, notably led by a fall against the US dollar.
On September 10th, 2014, the day Apple announce the iPhone 6, one Australian dollar was buying around 91.5 US cents.