In the wee hours of the morning Howard Lindzon retweeted a tweet that I think best sums up Apple. It not only shows the impact of the tech giant on their competition but shows just how successful they are. It makes me wonder if the destruction the iPhone caused was a mere fluke or if Apples competition truly stands no chance. So I took that tweet and looked a little deeper.
The first step to delving deeper is looking at the basic numbers. To get a better overall picture of Apple and their effect on the Television makers we need to take a look at the Apple effect when it comes to their most recent premium product, the iPad. Here is a look at the competition and their reaction since the launch of the Apple iPad on April 3 of 2010.
Google + .74%
Hewlett Packard -63.35%
The numbers above speak for themselves. Though looking deeper and trying to understand the overall picture, there are a few points that one should take from the numbers. First off, those established in the market Apple is coming for should be on their A game or they soon won’t have any game. Second, Apple has the ability to create a new market which some of their competition may be able to take advantage of. In other words, Apple created a market and the competition often steals their premise to better serve themselves. Google and Amazon are players in the tablet market and even though they have mediocre products compared to Apple, they are still competing (or attempting to) they have not fallen by the wayside.
At the end of the year when Apple launched their next generation product, the iTV, you as an investor will be the one to judge the merit of the competition. As obvious through the above figures their is a right way and a wrong way to survive when Apple is gunning for your business. The companies that focused solely on one product line that Apple could make better, suffered. Those companies that diversified and offered a decent competition or put up a fight against apple, for example Google and their android phones, had a chance. Though the one theme that repeatedly presents itself is that betting against apple when it comes to new products is a fools errand.
Either way you cut it, the television makers are Apples new target and this tech giant is currently using a scorched earth policy when it comes to the competition.