The Innovator’s Dilemma

Ben Bajarin on Android’s “good enough” problem:

One of the most interesting observations about all of this is that the Innovator’s Dilemma was supposed to impact Apple. This was a fundamental tenet of most bear cases. When the market for smartphones became filled with good-enough devices at very low prices, why would anyone buy an iPhone? Yet this is impacting Samsung exactly according to the guidebook — but not Apple.

The fundamental lesson to learn here is that the Innovator’s Dilemma, in this case, only applies to Android land, because all the hardware OEMs run the same operating system. As I’m fond of saying, when you ship the same operating system as your competition, you are only as good as their lowest price. This is the curse of the modular business model.

What about Apple?

One of the most interesting observations about all of this is that the Innovator’s Dilemma was supposed to impact Apple. This was a fundamental tenet of most bear cases. When the market for smartphones became filled with good-enough devices at very low prices, why would anyone buy an iPhone? Yet this is impacting Samsung exactly according to the guidebook — but not Apple.

The fundamental lesson to learn here is that the Innovator’s Dilemma, in this case, only applies to Android land, because all the hardware OEMs run the same operating system. As I’m fond of saying, when you ship the same operating system as your competition, you are only as good as their lowest price. This is the curse of the modular business model.

Which brings us to today in late 2015 with Microsoft pretending to drop their modular business model.