“Pretty much, Apple and Dell are the only ones in this industry making money. They make it by being Wal-Mart. We make it by innovation.”
- February 24, 1955 – October 5, 2011
- American
- Entrepreneur, businessman, industrial designer
- He brought to the world revolutionary products that combined technology and design at a high level, such as the personal computer Macintosh, iPhone, and iPad, and also revolutionized the music industry with the iPod, iTunes, and iTunes Store.
Quote
“Pretty much, Apple and Dell are the only ones in this industry making money. They make it by being Wal-Mart. We make it by innovation.”
Explanation
In this quote, Steve Jobs compares Apple’s approach to business with that of Dell, drawing a contrast between the two companies’ strategies. He explains that while Dell generates profit by operating with a low-cost, high-efficiency model, akin to Wal-Mart, Apple thrives on innovation. Dell’s business model focuses on cost-cutting, offering products at competitive prices and keeping operations streamlined to maximize profit margins. On the other hand, Apple’s success is rooted in its ability to create groundbreaking products that offer premium value and appeal to customers not just because of price, but because of the quality and creativity that drive their products’ appeal.
This difference in approach highlights Apple’s philosophy of innovation—a focus on design, user experience, and cutting-edge technology—which led to the development of revolutionary products like the Mac, iPhone, and iPad. Apple was not competing on price alone, but on the unique value it offered, which allowed the company to command premium prices and generate high profit margins. Jobs believed that by prioritizing innovation over mere cost efficiency, Apple could create products that customers would eagerly pay more for, allowing the company to remain profitable despite operating in a competitive market.
In the modern world, Jobs’ perspective remains highly relevant, especially in industries where innovation continues to be the key differentiator. Companies that rely solely on low-cost strategies may find success in the short term, but those that focus on creating truly transformative products—like Apple—are able to capture lasting customer loyalty and create long-term value. This approach continues to define Apple’s market dominance, particularly in the realms of smartphones and personal computing. Jobs’ words remind us that innovation can be a more powerful engine for success than competing solely on price.
