The numbers are quite simply staggering. $18bn profit for the last quarter of 2014 – that’s roughly £1bn a week. 74.4m iPhones sold – that’s 34,000 every hour – with sales up 70% in China. I’m obviously talking about Apple, the company that sits on a cash pile of $178bn – more than we spend every year on the NHS and education.
But there’s one more stat that I’m struggling to take in. According to the truly terrifying world population clock the number of people on Planet Earth is 7.3bn. Apple sold 74.4m iPhones. That means that in the last quarter of last year 1 in every 100 people on the planet bought an iPhone. Just one product – in the last three months of the year. I’m stunned.
Clearly Apple are doing plenty of things right: the key question is, what can we learn? Or is there simply too much difference between Apple – headquartered in Cupertino, California and dominating the world – and our businesses in North Yorkshire? So much difference that you can’t make worthwhile comparisons? I don’t think so: I think there are four very distinct lessons we can all learn from Apple.
- First off, Apple make brilliant products that simply work. I remember getting my first iPhone out of the box. ‘Where’s the instruction book?’ I thought. There wasn’t one – because you didn’t need one. It just worked. I always come back to Simon Sinek’s TED talk when I think about Apple: many companies understand what they do and how they do it. Very few understand why they do it. That’s what sets Apple apart and it’s what can set your business apart. Apple give a brilliant customer experience and make fantastic products: they just happen to be computers and mobile devices.
- Secondly, attention to detail. As the old cliché goes, good enough isn’t good enough. Or as one of the Michelin-starred chefs put it on Masterchef, “the difference between a good dish and a great dish is a pinch of salt.” You can never pay too much attention to detail, whether it’s design, function or customer service. In the long run, it always pays off.
- Offer a complete package – and don’t underestimate what you know. I’ve seen two or three articles suggesting that Apple make more money from their after sales service and their cut of the apps than they do from their basic product line. Don’t underestimate the value of support, maintenance, updates, training and consultancy. Your knowledge can be as valuable as your products.
- Lastly, don’t be afraid to charge what you’re worth. An iPhone isn’t cheap – but people pay for the perceived value. There’s a tendency in the North to say, ‘the market won’t stand it. The price is too high.’ It will: the price isn’t too high if the customer perceives the value he’s getting. Don’t ever be afraid to charge what you’re worth – or to say, ‘I’m sorry, that’s the price. No, I won’t negotiate or ‘do you a deal.’’ Sometimes you’ll need to be brave and walk away – but trust me, it works.
Of course, the cynics will say that Apple’s success won’t last. They may be right. When I started in business there was a saying: ‘No-one ever got fired for buying an IBM.’ Does anyone know anyone who’s bought an IBM recently?
But as long as Apple stay committed to the ‘why’ and – as Simon Sinek says – working from the inside out, then they’ve a great chance of staying ahead of the game. And let me chance my arm and make one prediction. The potential health benefits from your smart phone and developments like the iWatch are simply astonishing. Ten years from now monitoring your health – especially things like glucose levels – using a smart device should be routine.
Whether the NHS will be brave enough to embrace these potential benefits I don’t know. But clearly that’s enough from me for this week: still three months to go and I’m straying dangerously close to politics.
Have a great weekend – and remember the lessons from Apple. You might not be sitting on a billion dollar cash pile by the end of the year: but you can definitely have made a difference.