The Brand Gap

Products made these days

In a Newsweek article commemorating the 20th anniversary of the original Mac, Steven Levy wrote:

Even now for its 25 million users, the Macintosh is a source of passion. (Journalists know that a disparaging word about an iMac or a PowerBook will unleash a hundred flames from rabid Apple-heads.) Steve Jobs thinks he knows why. "In the modern world there aren’t a lot of products where the people who make them love them. How many products are made that way these days?"

If that’s so, then why is the Mac market share, even after Apple’s recent revival, sputtering at a measly 5 percent? Jobs has a theory about that, too. Once a company devises a great product, he says, it has a monopoly in that realm, and concentrates less on innovation than protecting its turf. “The Mac User-Interface was a 10-year monopoly,” says Jobs. “Who ended up running the company? Sales guys. At the critical juncture in the late ’80s, when they should have gone for market share, they went for profits. They made obscene profits for several years. And their products became mediocre. And then their monopoly ended with Windows 95. They behaved like a monopoly, and it came back to bite them, which always happens.”