Apple Ecosystem

There was a time when Apple was only about personal computers. Today the company is fast becoming the digital and technological hub of the entire world. With its line-up of computers, digital music players and phones, together with Apple software and on-line services, it has created a seamless media experience of which other suppliers and manufacturers want to become a part.

The result is the so-called ‘Apple Ecosystem’ whereby Apple products and those of other manufacturers function smoothly together. Apple is now at the centre of an expanding world of suppliers, accessory producers and content providers, so that each Apple innovation brings with it opportunities for others.

Accessory manufacturers

Apple customers now spend hundreds of dollars a year on extras for their iPods and iPhones. The result: an independent $1 billion-plus industry has sprung up selling everything from snazzy covers to portable speakers, wireless earphones to iPod alarm clocks.

Suppliers

Suppliers also benefit from Apple’s constant quest for innovation and simplification. Apple will buy 19% of the NAND flash memory chips (a key component in the iPod Nano and iPhone) produced worldwide this year, while its investment in touch-screens is likely to have similar impact. Meanwhile, thousands of software developers are creating new programs for Apple products.

Content providers

And then of course there are the content providers. Apple has sold around 2 million movies in the past year and about 2.5 million songs from labels including EMI, Sony and Universal. It now sells an estimated 70% of all digital music and has become the third-largest music seller in the US, in any format. Major TV networks have also become part of the Apple Ecosystem, selling about 50 million shows through the iTunes software in the past two years.

The Apple Ecosystem is very good news for the customer. It means a consistency of services and a range of technologies that are compatible. So whether you are using a Bose iPod dock or a Nikon camera, you can just ‘plug in and go.’ And the Ecosystem is expanding. Apple says that 70% of all 2007 US car models now offer iPod connectivity. It is also working with four airlines to let passengers charge iPods and watch videos on seat backs.

Apple has brought soothing simplicity to the world of consumer electronics. It has dismantled the boundaries between computers, web, television, music, movies and phones. And, by encouraging different manufacturers and industries to work together, Apple has created a more holistic and simple experience for the user.

Further reading - “The iPod Ecosystem,” by Damon Darlin