There’s no business like tech business
YouTube recommended this video of Jordan Belfort explaining what the “sell me this pen” analogy is all about. I know he’s not the right role model. But when it comes to selling, there’s something we can learn. The idea of knowing what your client needs, and coming up with a product/solution to their problems got me thinking.
I wonder if there’s ever been another market like smartphones, where there’s total dominance and there’s little need for customization based on clients’ needs. Smartphones are almost unique in that sense. Take the reality of the US market, where 87% of all teenagers own an iPhone. And overall they have half the market share. Almost everywhere, they dominate the premium segment (despite being niche at times).
In theory, you could have the entire world using the iPhone (which some Android users secretly crave), but there are others who are truly anti-iOS.
That being said, what does it tell us about the market? These devices are really wonders of engineering, as they can fulfill most of our needs. Browsing, communications, photography, recording, finance, creativity, and many more. It is based on one form factor and one way to operate (icons and multitouch). Distinguished only by materials and software.
This can’t be seen in the automotive industry, for example. Oh, just a quick thought: the richest people in the world and the humblest intern will own an iPhone. Where else does this happen? Birkenstocks maybe? Aside from the fashion statement, the impact smartphones have had on the world is truly fascinating.
Albeit, this market dominance changes drastically across different markets; in SEA, there’s a more competitive landscape, and in some countries, Apple doesn’t even feature among the top 5 best-selling brands. Even in Europe, there’s a more balanced market share. However, the product in question, the smartphone, still remains the same.
Taking “the quarter-inch hole” principle from Professor Theodore Levitt. What job do people want to get done? If it’s with a car, it can be hauling heavy gear or traveling faster through the Swiss Alps. It can be a 7-seater van for all your family’s commute needs. Either way, it sounds like you have lots of variables in a market that solves problems for a variety of consumers.
With smartphones, it’s easier to have a device that solves almost everyone’s problems when the only limiting deciding factor is price. Even across different brands, different models, and, well, even different operating systems, the end product is basically the same: a rectangle with cameras.
It’s like a sedan for all purposes. I have no idea where this article is going, by the way.
Perhaps TV as a market faces the same issues. Although, I’d say there’s a lot of pondering about the size of the screen and which TV fits better in which room. But all in all, I agree, there isn’t much differentiation you can add to it. It solves the problem of entertaining the viewer.
The perplexing reality of smartphones is the lack of variants with large batteries for users with demanding jobs. Or very small displays for people in search of extreme convenience and privacy. Sure, these models exist, but they are so niche that they don’t even show up in any significant sales figures.
What is the magic of technology that a few players and basically “the same model” can suffice for the entirety of humanity? If we look beyond hardware and across the software realm, Google is pretty effective for most when it comes to search or email services. Microsoft Excel is synonymous with spreadsheets. Has tech made us more homogeneous than ever? Or is it just a side effect of being able to cram all the features that most people need without adding bulk and/or extra costs?
Those answers will remain open for now.
Thanks for reading, see you in the next one.
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