The competitive response to Apple’s decision to change its device connectivity

An article in the New York Times (May 6,2013) describes the accessory supplier’s response to Apple’s decision to change the connection for its devices. The new connection decision by Apple makes all existing accessories obsolete, with no advance notification provided to suppliers. But Apple’s devices can also connect via bluetooth, and accessory suppliers are switching to that mode of connectivity. But this makes switching to other manufacturers, such as Samsung, easier as the connectivity via bluetooth is standard across different platforms. It also enables accessory makers to avoid paying royalties to Apple for the connectivity hardware licensing. Did Apple’s decision to switch connectors thus end up hurting its competitiveness by lowering the barriers for customers to switch devices ? Will the availability of easier methods to use speakers and other existing accessories end up helping Apple’s growth ? Will suppliers end up being better off, as will customers, as accessory prices drop due to standardization across devices ?

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About aviyer2010

Professor
This entry was posted in Operations Management, Supply Chain Issues and tagged , , , , , , . Bookmark the permalink.

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