“For example, the iPad was little more than a larger iPhone upon its launch. Apple’s genius was that it was the first company to understand what customers wanted in the nascent tablet market. The company then delivered with an easy-to-grasp user interface at the right tablet size. Without any real “innovation,” Apple was able to expand its iOS operating system to a whole new growth avenue.”
“Detractors might say that Apple’s success in the past decade was largely a result of two breakthroughs: the iPod and the iPhone. To an extent, that’s true. The iPod fueled growth early in the decade, and the iPhone provided late-decade growth and laid the foundation for the iPad. Surely Apple can’t come up with a third game-changing innovation, right?
Well, once again we find that Apple doesn’t really need to reinvent the wheel so much as stretch out its calculation of pi by a few more decimals. Apple’s focused efforts on creating iOS and a rich development community around it now yields a powerful platform that can scale out to new markets. The most logical market would be home entertainment, but other incremental improvements, such as better capturing of mobile advertising through iOS, could also yield outsized gains.”