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April 05, 2010

Editorial: What Apple and Gillette have in common

Mickey Alam Khan, the Editor of Mobile Marketer draws an interesting analogy between Apple and its App Store and Gillette's razor business:

The genius of Apple is that it has replicated with the newly launched iPad tablet what it has got down pat for previous products such as the iPod in 2001 and the iPhone in 2007, followed by the App Store in 2008.

...

Indeed, it is not the iPad device that’s the prize – it is the revenue from the hundreds of thousands of applications created for that device, locked and unique to the Apple ecosystem. It is the potential of downloads, mobile advertising on applications and revenue shares from sales of movies, music, software, books and media.

Apple, in effect, has learned from Procter & Gamble’s Gillette: create and upgrade the subsidized razor, win the loyalty of its target market and then keep them coming back for refill blades year after year, life-stage after life-stage.

For Apple, the iPad is the razor and applications are the refill blades. The iPod with its songs from iTunes and the iPhone with its songs and applications from the App Store are cut from the same philosophical cloth.

Read the whole thing @ Mobile Marketer.

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