Apple Rumors: The iPhone 6, the iWatch and the Apple innovation engine

What and when will the next iPhone appear and will it be the iPhone 6? I blogged back in October 2011 at the disappointing launch of the iPhone 4S which was Apple's first major product launch post Steve Jobs that I thought that there were signs that the world's greatest industrial innovation engine was slowing. This has undoubtedly turned out to be true and Apple are now under serious pressure with their stock falling consistently. I am an avid watcher of Apple rumors mostly because I think they are a fascinating organisation that is going through huge change right now.

What is going on at Apple (I think)…

The press and markets are in a frenzy at the moment as hedge funds and investors drop Apple. They say that Apple are losing the war against Samsung in the high end mobile phone market, have no cheap iPhone option for developing markets and haven't released a breakthrough innovation in years. Here is what I think is going on……

The truth is that Apple have only started to come to grips with the loss of Steve Jobs in the past few months and what's more we shouldn't be surprised.

Steve Jobs was the tech-genius of his generation – a unique and irreplaceable leader. His loss will be felt in Apple and the world for many, many years. From the many people who I have talked to who have worked at Apple – it is an egotistical, difficult and political place to work. Remove the king pin from this type of corporate culture and a power vacuum results. This creates in-fighting and a land grab. Tim Cook has only recently started to come to terms with this with his sacking of Scott Forstall in October after the maps debacle and the appointment of Jonny Ive as a Steve Jobs replacement responsible for both hardware and software.

I think the top team at Apple are only now coming to terms with the absence of Jobs and in a place where they can get back to the tough process of innovation. They have some key challenges which they need to overcome in order to deliver a series of launches and products which will either underline Apple's dominance as an innovator or start the Microsoft style slow steady decline to mediocrity. With the up and coming changes to the iPhone franchise, the iPhone 5S, iPhone 6 or iWatch Apple need to prove their innovation capability in a post Jobs world. 

The most pressing problem for i-devices is software not hardware

iOS which spans iPhone, iPad is increasingly becoming THE operating system for Apple but it is not just looking old and tired but is behind on key usability features. The core strengths of iOS were always its functionality, usability, ease, consistency and reliability. It is still easy to use, consistent and reliable but it is now lagging in core features to make life and communications more functional. Android and Blackberry 10, even Windows 8 Phone, now have a significant advantage in really useful features that bring information, communication and organisation to my day. For example Blackberry with it's Personal and Office modes, or Windows 8 Phone with live tiles that tell me the weather, or Android with it's more integrated message centre. All these developments have left iOS lagging. Witness the wild success of the Evasion Jailbreak on iOS devices: 8,000,000 downloads so far to see how much demand there is for more functionality and flexibility. 

Here I am hopeful that the integration of software under Jonny Ive will deliver major benefit and improvements in functionality.

I think iOS 7 is going to be a big deal and it needs to be.

It needs to take the elegance and robustness of iOS and combine it with a more integrated and seamless communication feature set. Email needs to be overhauled, messaging needs to become integrated, communications from contacts integrated across channels, there are many improvements that can be made. It will also have a facelift I think. All this needs to be delivered in the next iPhone device which leads me onto my next thought on Apple rumors….

iPhone 5S will be next around April 2013, then the iPhone 6 in late November

Apple iphone 6 iphone 5SWhen is the next iPhone due? There is no doubt in my mind that Apple are convinced that the iPhone 5 is a good product and a worthy competitor to the Samsung SIII – Apple still believes in high end design principles based on consumer usability rather than fancy feature packing. And shipments back them up! The iPhone 5 continues to sell in huge numbers it was the No. 1 selling smartphone in Q4 2012. Yes the momentum in the market is for bigger smart phones. Samsung will reportedly launch their SiV in March and are manufacturing 100 million units. However I think that the next iPhone release that Apple will launch is a iPhone 5S with better specs, new iOS 7, a better camera, fingerprint reader (based on their acquisition of Authentec) and possibly NFC in April 2013. This next-generation iPhone would constitute a really good package that would sell on a par with the Samsung SiV. Pundits need to remember that there are millions of people locked into iOS, apps and music that can't easily change to Android or another system. This lock in keeps them loyal – with new hardware they stop being frustrated. 

However I do think that Apple will launch a larger screened (up to 5 inches) iPhone by late in the year. I think it will be longer not wider but will contain an IGZO screen that are stunning, thinner and better on battery life. This would represent a very strong new iPhone 6. It could be thinner, higher resolution, with longer battery life and with continued improvements in iOS 7 would again represent or be on parity with the best hardware in the market.

I also think that the cutting edge latest iPhones will continue to be premium priced. I cannot see any logic in Apple starting to launch cheaper products made out of worse materials. The only substantive difference between Apple hardware and others is it's feel, durability and premium quality. A Google Nexus 4 or a Samsung SIII just feel cheap compared to an iPhone. That's not to say that Apple won't refresh the iPhone 3 or 4 with updated specs and possibly cheaper, easier to manufacture changes that would mean the price point can drop to suit Chinese and developing market consumers.

The big test of the Apple innovation engine is coming 

With Google Glass, various start ups pushing wearable technology and the continued copying of Apple ideas and design ethos – Apple face a stern test. The strength of Apple as a company is that they take ideas which are breaking through and design them brilliantly so that they stand the test of time, and are so far ahead of the market that they retain a price premium for years. That's what the iPhone and MacBook Air have done. 

Let's be clear Google Glass is still a concept – they cost $1500 for goodness sake – hardly a mass consumer price point. What Apple are working on, from what I hear are technologies that create new mass markets. Wearable technologies are undoubtedly the next big battle ground. Whether it is an iWatch or an arm based iPad or indeed glasses Apple need to deliver a product which is truly functional, useful, elegant and able to capture the imagination and wallet of the mass consumer market. My personal take is that Apple will launch an iWatch either towards the end of this year or in Q1 2014. I doubt it will be before then because they will need to overcome the significant manufacturing, durability and functionality issues that will come with wearing the hardware on the wrist so close to the skin.

But let me underline that Apple needs to do something big.

They are a secretive company, they don't show off early stage products like Google have done with Glass. Jonny Ive says that the iPhone took nearly a decade of pushing and development to get to launch. Apple don't have a decade but given they are still the only fully integrated hardware and software company in the world they have some time to get their next big innovation ready – but, as they know, the clock is ticking not just on them creating an innovation but underlining that they have finally moved into a post-Steve Jobs innovation engine. 

What's your view on Apple rumors, the iPhone 6, the iWatch and Apple's innovation capability – why not leave a commnent?

LEADERSHIP: FROM SHAREHOLDER VALUE TO STAKEHOLDER VALUE

I have just finalised and agreed my topic at the 3rd annual CMO Conference in Zurich on 30th September which will be:

Leadership in Marketing: from shareholder value to stakeholder value

I’ll be covering the following questions.

  • How do businesses and brands build and rebuild the trust of consumers and society?
  • How do businesses and brands respond to the changing landscape of needs?
  • What is the role of brands and marketing in answering the challenges of sustainability?
  • How do we as leaders put humanity back into business outcomes?

I’m hoping the session will be thought provoking and interactive. I will explore several significant leadership challenges for business, brands and CMOs namely the need for more balanced outcomes from business as we move from a ruthless shareholder view to building stakeholder value. The battle for leadership in business and brands is increasingly being fought on a landscape that is intrinsically linked with sustainability and transparency in an effort to build and rebuild the trust of people and our society.

The session will include a presentation of the findings of my in depth study
into trust, humanity and sustainability, case studies of emergent best
practise and discussion amongst the group around some fundamental strategic questions.

I hope to see you there but if not then sign up to my RSS or email feed – it’s free and easy – and you will get a copy of my presentation with audiocast.

Thanks

Justin

Mail me: justin@basini.com
My website & the RE:Thinking Marketing & Brands blog:http://www.basini.com/
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PUNK YOUR BRAND

Malcolm McLaren, one of the major forces behind the Punk movement died last week.

He’d probably hate this blog I’m about to write but here goes anyway – it’s meant as a tribute to the many things we can learn from “unreasonable” people like McLaren.

Malcolm McLaren was the marketing genius that propelled the punk movement into the spotlight and amplified its effect on our society and consciousness. He did such a good job that even now we all still hold a visceral understanding of the feelings and motivations behind the punk movement.

So how do you Punk your brand?

1. Be unreasonable.

Malcolm McLaren said: ‘There are two rules I’ve always tried to live by: turn left, if you’re supposed to turn right; go through any door that you’re not supposed to enter.”

It’s said progress is only made through the actions of the unreasonable. That’s the same with businesses and brands although sometimes it’s a little harder to see than black eyeliner and a mohican haircut.

But at the time it wasn’t reasonable for Henry Ford to say “I will make a car for the great multitude” or for Sergy Brin, founder of Google, to say “We had a simple idea, that not all pages are created equal. Some are more important,” or my favorite from Steve Jobs who said  “I want to put a ding in the universe.”

All the greatest businesses and brands have been built from unreasonable people fighting against the system, seeing a better way and creating something extraordinary. Malcolm McLaren wanted to fight back against the mainstream which he saw as pallid and restricting. His ideas and vision connected with what young people were feeling and changed their lives, it gave others pause for thought about the direction of travel. Above all it got him noticed.

How unreasonable are you?

2. Connect with radical ideas and people

True game changing insight doesn’t come from sitting behind glass listening to Mr and Mrs Average tell you why they want a new car or like an advert. The really different thinkers are, almost by definition, at the edges, in the fringes of society.

Malcolm McLaren found ideas that sparked his imagination at the art colleges of the Sixties including Harrow, St Martin’s and even Croydon. He connected with talented, wild thinkers. He married one of his most powerful connections a young Vivienne Westwood. This undercurrent of youth and ideas demanded an outlet which created society changing content.

Great business and organisations look for true diversity and seek out ideas in different places. They collaborate in new and exciting ways.

Have you talked to your local university or art college recently about what they are thinking? Have you stopped to get together with people who have radically different points of view from you or look very different?

Where do you hunt for game changing ideas?

3. Develop content that fires the imagination.

McLaren was an ideas man and he had an intuition for developing content which through its medium and message had an impact. When McLaren and Westwood opened their shop in 1971 on the Kings Road they first called it “Let it Rock” then “Too fast to live, too young to die” then finally “Sex”. The constant re-development as the shop changed allowed it to continue to be a magnet for punk and background to the formation of the Sex Pistols. McLaren knew that linking sex and subversion was both incredibly attractive to the younger generations and incredibly challenging to the establishment.

“God save the queen
The fascist regime
They made you a moron
Potential H-bomb”

God Save the Queen, The Sex Pistols


McLaren understood the media as well as the message. The message of God Save the Queen was amplified onto a national stage when McLaren hired a boat and got the Sex Pistols to play it opposite the Houses of Parliament and then got the boat raided by the police. This was what ensured that it was a hit in the same week as the Silver Jubilee of Queen Elizabeth II in 1977.

McLaren created and moulded content which truly captured the imagination and took over the consciousness. It was so daring in its conception that it demanded attention.

How about putting this as an example to emulate in your next campaign?

4. Social aims give you greater permission.

If you do put into action the recommendation above of emulating McLaren’s approach to creating and moulding content that demands attention – you are most likely to fail.

Why? Because if you’re a marketer or brand owner reading this you’re probably trying to sell stuff. What that means is that people will give you little latitude or room to maneuver. Punk, for all its aggression and bile against the state, and claims to anarchy, had the energy, naivety and pureness of a youthful desire for a different, and hopefully better way. A way that was more accepting, less controlling and more liberal.

This social aim lent Punk permission to push the boundaries and challenge the status quo.

The landscape of brand and business is rapidly becoming one where businesses that develop their social impact as well as delivering against their commercial aims will be the leaders. Adopting social imperatives starts a different conversation, it widens the scope of engagement, and creates space for new ideas and change to happen.

5. Success is a consequence of your strike rate.

Malcolm McLaren produced ideas most of which didn’t work but he had endurance and a belief in himself and what he was doing. Even the Sex Pistols, perhaps his most successful idea, crumbled because he didn’t realise the talent and opportunity that he had created.

But he got up and gave it another go. As the state re-established control in the 1980s and, as a consequence of the result of the social breakdown of the 1970s, the free market mantra of Reagan and Thatcher emerged, he continued to be disruptive and flamboyant. He worked with new bands and artists including Adam Ant and Bow Wow Wow. He was responsible for the infamous “See Jungle” album cover where an underage Annabella Lwin posed nude in a recreation Manet’s Le déjeuner sur l’herbe. In 2006 he even co-produced the film Fast Food Nation.

McLaren was comfortable with failure and just kept on developing ideas. Punk was about keeping the energy and momentum of change alive.

It’s only those businesses that embrace failure and keep swinging that succeed over the long term. The creative process is not easy, it’s not smooth. We’ve all read the books and analysis – most products and new launches don’t work – accept it, move on and keep creating. Until you do, you won’t get to your success.

May Malcolm McLaren rest in anarchy…

What do you think? Got a view on Malcolm McLaren and punk – leave a comment below – its easy and I reply to all of them!

If you enjoyed this post then why not consider subscribing to the blog – it’s free and easy – click here

Justin

Mail me: justin@basini.com
My website: http://www.basini.com/
Read my blog: http://www.blog.basini.com/
Follow me: www.twitter.com/justinbasini

Trendhunter Pro – cutting edge trend hunting from around the globe


Last year I recommended the best selling book – Exploiting Chaos – by a friend of mine Jeremy Gutsche.

Jeremy’s website Trend Hunter continues to go from strength to strength. His model is fascinating. He has thousands of “trend hunters” posting interesting content about stuff happening all over the world. But what I really love is the way that they are exploiting and developing insight from this content.

The guys have launched a new service called TrendHunter Pro Trend Reports. These are great syntheses of what is hot from all the content posted on Trend Hunter. If you are in consumer insight or want to know about the real cutting edge trends happening now then they are worth looking at. Trend Hunter is great example of how powerful the democratisation of the creation of content is to delivering insight and value.

Click here to visit Trend Hunter.

[Disclosure: If you buy through the above link then I receive a commission on this sale. This does not affect my recommendation of what I think is a good product. If you prefer not to recognise my recommendation through a commission then you can use this link: www.trendhunter.com]

Have fun exploiting what’s hot and what’s not!

Justin

Mail me: justin@basini.com
My website: http://www.basini.com/
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INNOVATION THAT YOUR CUSTOMERS MIGHT ACTUALLY CARE ABOUT


I’ve been thinking about the new stuff that companies do.

Innovation. Too many projects in businesses are given that title. It devalues the word and what it should really mean. It leads to that sad statistic that 80% of new products launched don’t survive….which given companies are generally very risk adverse is a pretty pathetic hit rate.

Unfortunately most companies believe that implementing anything new is innovation, which is more a reflection of how difficult they make it to get stuff done rather than anything that would make a real person go “wow – that’s neat”.

That’s not to say that a whole range of things can’t build your business but if we are honest with each other most of it isn’t innovation. Try this simple categorisation test for the new stuff you or your company are working on:

CATEGORY 1Stuff your customers think you already do because you are behind the curve or is so obvious that you should do like….

  • An innovation CRM project that allows your company to know when a customer has called (all service companies want this and most don’t have it covered yet)
  • An innovation IT system that allows your company to see a single view of a customer (i.e. you know what products I have from you) (all the big banks want this but most don’t have it)
  • Servicing your account online or opting for e-statements (Barclaycard have been pushing this to their customers in the last year or so as they played catch up)

CATEGORY 2: Stuff your customers think you should do already like…..

CATEGORY 3: Stuff which customers recognise is new but don’t really care that much about like….

 

and finally if you have any left….

CATEGORY 4: Stuff which customers recognize is new and really want like…

  • A truly easy to use fusion mobile smartphone that moulds to your needs (the iPhone)
  • A drink which is 2 of your 5 day and tastes great (Innocent Smoothies)
  • Off-set mortgages (Virgin One Account – this was a real financial product innovation which gave a real benefit to some)
  • Hybrid cars (Toyota and Honda – true technological innovations)
  • LED lightbulbs (which replace 50W halogens with 4W almost never ending bulbs)
  • Widgets which gave a smooth pour from a can (can’t remember who launched this first Guinness? Boddingtons? – but it was an innovation that delivered a real benefit)
  • Wash and Go 2 in 1 shampoos (yes – even this was a true innovation which solved a customer need that of simplicity)

It’s the last category of course that are real innovations requiring significant investments and creative thinking rather than battling with internal restrictions and bureaucracy.

How much of what you are working on that is called “innovation” could really be placed in the last category? If it’s lots that’s great – I can’t wait for these new breakthroughs to get to market! If it’s lots in the other categories (as I suspect it will be) that’s not necessarily a bad thing but make sure you don’t believe your own “innovation hype”- because it’s your customers that really know whether what you’ve just launched is new, truly different and worthy of lasting.

As ever I would love to hear what you think. Get involved, share your ideas, comment below – every comment wins a personal thank you from me!

Hope “The Teenies” are treating you well!

Justin

Mail me: justin@basini.com
My website: http://www.basini.com/
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THE PIZZA OF INNOVATION

I'm a huge fan of Pizza Express (for those non UK readers Pizza Express was the first sit down pizza restaurant chain in the UK established in the 60s). Both my sons were born soon after Pizza Express visits!

And despite now having a growing family we still love Pizza Express because over the past few years they have stepped up their innovation and much of it is based on really good insight into their customers.

After a recent visit a few lessons struck me on what pizzas reveal about customer led innovation:

1. Understand the desired experience not just the product attributes. My wife and I still like to spend an hour or so in a restaurant having a simple dinner. That hasn't changed now we have three kids. We've learnt, as many parents before us have, that the art to keeping that hour pain-free is keeping the kids occupied. Increasingly kid-friendly restaurants dole out the crayons and paper but Pizza Express have taken it to another level. They have tailored their kids menu to be multiple small courses over the space of an hour. So you quickly get garlic bread or dough balls for the kids to munch, then comes a small pizza, then an ice cream, then a really cute idea – the Bambicino – which is a frothy cappucino style milk. This means whilst we eat a starter and pizza the kids meal is paced to keep them occupied. Pizza Express have understood what I want and, more importantly, what my kids want so that we all get a good experience.

2. A well tried foundation is the best starting place for new ideas. Why is the pizza such an enduring food? Because it is a solid foundation from which to add and adapt. This is true for much innovation (and indeed solid incrementalism) – start with a good process or product, understand what is great with it, and then improve. A strong foundation also allows you to engage the customer through customisation…

3. Customisation was, is, and always will be a powerful way to engage. From its earliest origins the pizza has been a customisation engine. One of the reasons almost everyone can enjoy a pizza is that the solid foundation allows personal expression and the adaptation to personal taste and creativity. This is what I love about Apple products, a great base product facilitating creativity, for example, through the music you put on them or what you create on them. Dell were the masters of mass customisation but on attributes that were intrinsic rather than 'tasty'. Only now are they realising that allowing customisation on the surface is as important.

4. Innovation isn't always about adding things – it can also be about taking things away. Most companies that I've worked with start from a foundation of their current product or process and then think about features or benefits that can be added in order to innovate. This isn't a bad path to innovation but it can be illuminating to think about what to take away from the product. Pizza Express have a new product called the Leggera. This is a pizza with the middle taken out with salad replacing it. This fills a need for those who want a lower calorie option. I admired Vodafone when they launched their Simple proposition. A simple phone and tariff for those that wanted just a phone that worked like a traditional phone not a computer. Dyson took away the vacuum cleaner bag for a better experience. You don't always have to add.

5. Different occasions are sources of new volume, canibalisation can be a red-herring. In the last few years Pizza Express have launched a line of retail pizzas. I bet this gave them some sleepless nights. I can hear the discussions now: surely this would canibalise their take out business or, even worse, their core restaurant business (especially in these more difficult times as people trade down)? Perhaps it would damage the brand because they couldn't gaurantee product quality? Overall I think it works well and from what my friends in the supermarket industry tell me it has been a hit. It has provided a new occasion for loyal users to use the brand and allowed those who don't visit the restaurants to buy into the franchise in a different way. I bet frequency of consuming a Pizza Express product is way up since their introduction. Starbucks are now launching into instant coffee with their VIA product. I suspect they had lots of similar debates. If the product is good I bet it will slowly creep into the Starbucks loyalists' non-Starbucks coffee consumption and potentially open the brand up to non-users.

What do you think? How do you innovate? Got any lessons to share? Please comment below. Feel free to share this post with other innovators (or pizza lovers!)

Justin

Email me: justin@basini.com
My website + blog: http://www.basini.com/
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WHAT IS INNOVATION REALLY?

The launch of a new book has had me reflecting on that most overused and misused word in the business lexicon – Innovation…

That book is Jeremy Gutsche of Trendhunter.com book: EXPLOITING CHAOS. Jeremy has kindly allowed me to link to a free download of pages and examples from the book.

It looks really exciting to me – I’ve always enjoyed the more visual business books such as Tom Peter’s The Pursuit of Wow or The Medium is the Message by Marshall Mcluhan and EXPLOITING CHAOS looks extremely enticing.

Some of Jeremy’s ideas and thoughts are powerful. He has created a good resource in this book of examples, ideas and provocative challenges that will help to inspire and stimulate thinking.

I’ve always thought that we should hold a high bar to what we regard in business as innovation. During my corporate career I seemed to be constantly working on the next “innovation” as were my colleagues. I think many businesses use the word to make people feel better about the work that they were doing! A new ad, a new twist on an existing product, a new concept in an existing category – most likely they aren’t going to be an innovation.

In my mind innovations need to meet at least the following criteria:

1. Its a truly new idea or the exploitation of an existing idea into a new context: like the invention of the lightbulb, or the creation of a domestic compact flourescent bulb; or the invention of the telephone or the cellular networks which enabled mobile phones;

2. It delivers something new against a new or existing need meaningfully and for the long term. I think an innovation should have context – it can’t be a good idea for the sake of a good idea.


The Honda hydrogen fuel cell car, for example, I think will be seen as truly innovative over time because it moves us on significantly into new long-lasting territory. Whereas the Toyota Prius won’t stand the test of time because whilst it was a step forward (and a good one), it didn’t fundamentally deliver against the need meaningfully and for the long term (although the harvesting of electrical energy from braking that Toyota developed is an innovation which I suspect will last).

3. It should significantly challenge the existing status quo. The introduction of an offsetting mortgage, much touted as a financial innovation, didn’t meet my bar – it was a good product and clever but not an innovation. Zopa, on the other hand, a marketplace for you and I to lend to each other safely is an innovation – it challenges the exisiting significantly and is truly novel.

The debate over innovation will go round and round. I just hope that more businesses can deliver value against our needs, whether they call it invention, innovation, or just plain old tweaking.

What do you think? As always please feel free to share, retweet, comment and get involved.

And congratulations to Jeremy on the publication of Exploiting Chaos.

Yours

Justin

justin@basini.com
http://www.basini.com/
justinbasini.blogspot.com

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