The Age of Apple
Justice is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
Apple (NASDAQ: AAPL) is continuously moving ahead of its competition. The legacy that Steve Jobs built has held up and only seems to be growing.The products that the company has created have been innovative and the new products that are unveiling seem to be following that trend. Apple has the highly anticipated iPhone 5 coming out and an iPad mini and iPad 4 soon to follow. Their dominance in almost every aspect of the technology world, has left their competition searching for new ways to keep up.
This past week Barnes and Noble (NYSE: BKS) cut prices for their Nook's. The company has been struggling to maintain their sales of this product. While the Nook has been popular it lacks what the iPad has. The Nook appeals to a person interested in ebooks and not as many apps as the iPad offers. The ipad appeals to a person interested in having virtually everything they want in a tablet. The product combines all the Apple products (Mac, iPod, and iPhone) into to one. Another advantage of owning an iPad is iCloud. This service allows you to link up all your iOS devices. The Nook is cheaper than the iPad and works for the person on a budget; however, the marketplace, does not mind paying more. In order for Barnes and Noble to compete, they will have to rethink their game plan. Investors have grown disinterested and no matter what way Barnes and Noble tries to spin it, the numbers do not lie.
The company cannot be Apple, but they do not need to be. Barnes and Noble has made a name for its self as the "largest book retailer in the United States." With the addition of the Nook, the company was trying to enhance the book lovers experience. However, Barnes and Noble have refused to acknowledge that these book lovers too have grown to be technology lovers. To stay afloat, the company needs to combine the Barnes and Noble charm with the ever changing technology of today's world.
Apple's competition gets fiercer in the form of Samsung. Imitation is said to be the highest form of flattery, but that is not the case here. Apple is suing Samsung for "$2.5 billion dollars"over patent rights. The lawsuit has heated up an intense court battle and the judges decision could have an huge impact for the next couple of years. If Apple wins, the message will be sent that copying their products will not be tolerated. However, if Samsung wins, underdog companies will continue to undermine Apple's products.
There is no doubt how dominate Apple is and continues to be. Tech companies are fearful of what the company may introduce next. The two companies highlighted here are taking the biggest hits due to Apple. Barnes and Noble in sales and Samsung in dignity. Its a hard fight for any company, but there is a lesson that the companies can take away from Apple. That is being innovative. Apple became successful because it changed what people thought technology could do. These other companies should identify a technological need people have or may not know they have yet and capitalize on it. If they choose not to, Apple will be the one to keep laughing all the way to the bank.
Fool blooger Justice Plummer does not own shares in any of the companies mentioned in this entry. The Motley Fool owns shares of Apple. Motley Fool newsletter services recommend Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.If you have questions about this post or the Fool’s blog network, click here for information.