In about an hour, Apple is expected to announce the addition new product – the iPad mini. This product will likely have less processing power, lower screen resolution, and a smaller screen than it’s predecessors. Why would Apple introduce a product that offers less to consumers? Simple, because that is what consumers want.
A few years back, Steve Jobs proclaimed that Apple would stay out of the small tablet market, opting instead for either the iphone on one end or the iPad on the other. There was no plan to occupy the middle ground with a 7 inch tablet. It was basically viewed as a product that people would not want. However, competition has helped Apple to better understand the market, as the success of products like the Kindle Fire have shown that people are very interested in a slightly smaller device at a slightly lower price. Apple, in spite of their reputation for being driven by internal vision versus the external market, is prepared to capitalize on the introduction of a product that offers a little less, and yet in doing so, offers a little more. Apple will reach entirely new markets, create brand new customer relationships, and build an even bigger base of potential future revenue.
Customers are the ultimate determinant of value. Recognizing this fact can have a tremendous impact on your product and service offering and ultimately on your revenue. As humans we have a natural tendency to want to always offer more – whether features, functions, choices, or quality. Sometimes, however, what the consumer really wants is less.
As you watch this new Apple device occupy your television screen in the next 2 months leading up to Christmas, think about how much money Apple is making by offering less. Use that thought as a reminder to review your brand and ask yourself if there is an opportunity to get more by delivering less.