Apple isn't a tech company, but rather it's a design company.

By being defined as a design company, Apple is positioning the user experience - how consumers interact with technology - as more important than focusing on the sheer power found with technology. This goal permeates throughout Apple. The company isn't just a design studio with a technology arm. Instead, every group at Apple is in one way or another focused on design. Apple is betting that design is the ingredient that will continue to put the product above anything else.

Design vs. Technology

There is a way to differentiate a design company from a tech company: Observe how the company approaches technology. In every case, Apple views core technologies not as products themselves, but as ingredients for something else. Instead of wanting to chase after technology's raw capability, Apple is more interested in technology's functionality as it relates to the user experience. This brings up Jobs' reference to Apple being at the intersection of technology and liberal arts. By looking at the world through this lens, we receive a clearer roadmap as to where Apple is headed in terms of product strategy.

Augmented Reality (AR). Apple has been investing significantly in AR for the past few years. Instead of acting like a tech company and positioning AR as a standalone product, Apple's primary focus is to incorporate the technology into products we already use (smartphones, tablets) and products we will begin to use in the future (entirely new wearable form factors). Apple views AR as a core technology that will transform products into a new breed of navigation tools. This will add a new dimension to the technology. The way we will interact with AR is often the part of the equation not discussed much by tech companies. Apple will attempt to figure it out.

Autonomous Driving. Contrary to reports, Apple still wants to design its own car. Apple recently was granted a permit to begin testing autonomous driving technology on California public roads. Apple is researching autonomous driving technology because it will be a core ingredient powering a range of Apple products in the transportation space. Instead of partnering with legacy auto companies, Apple will look to do everything on its own. The motivation and ambition in such a move is born from Apple's adherence to design and the quest to control the entire user experience.

Health Monitoring. There is a reason why Apple Watch bands are the most frequently updated product in Apple's line. The best way to get people to wear health monitoring technology is to have people want to wear health monitoring technology. Today, health monitoring primarily describes simple fitness and health tracking. Apple is actively researching different technologies, including those for possible blood sugar monitoring. If successful, the technology will play a vital role in Apple's wearables products.

Voice. A tech company positions a voice assistant as the product. Cheap standalone speakers would be positioned as a way to get people to use the voice assistant as much as possible. Apple sees voice playing a different role in computing. Voice assistants can add value to products we already use and wear throughout the day. Instead of making the voice assistant the focus, Apple is interested in how we can use our voice to make technology more manageable.

TV. Apple's decision to not ship a television set provides an example of not enough core technology resulting in a product receiving a "no" from the company. According to reports, Apple was not able to figure out a way to differentiate itself from the competition. This is another way of saying there was little found with a television set that could lead to an entirely new user experience. Television sets are stationary, large pieces of glasses positioned a few feet in front of us. While new technology in the form of a few front-facing cameras and sensors may add a few new twists to the equation, Apple didn't think the final offering would be compelling enough. Instead, Apple focused on the piece of the television experience we do interact with - the remote control and tvOS user interface. As it turned out, Apple ended up selling more than 255M "television sets" in 2016 anyway. They are called iPhones and iPads.

Criticism

Much of the criticism directed at Apple can be traced back to how the company is defined. Because it is not a tech company, some have questioned Apple's ability to grasp future technology waves. These critics don't give Apple enough credit for the large technology arm connected to its design studio. Suggestions that Apple's services will remain inferior to those of its peers are becoming common occurrences. However, the progress Apple has made with Apple Maps suggests this is not the case. Apple's ability to excel at machine learning is routinely questioned. The criticism boils down to Apple focusing too much on functionality (how we use the technology) and not enough on capability (what the technology can do).

At the same time, Apple receives pushback from being a design company. The significant backlash Apple is receiving from a portion of its pro Mac user base boils down to a broader dissatisfaction with the company betting too much on design. There are some Apple users who don't want the version of technology Apple is selling. In addition, there is no sign of this dissatisfaction going away.

In reality, Apple's largest risk isn't found in being a design company or not being a technology company. Instead, it's in becoming a tech company. If Apple finds itself moving away from being design-led, the product will be put into jeopardy. This is likely one reason why Cook continues to bet so heavily on design.

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