Apple's Strategic Intent

Apple's strategic intent in releasing its tablet has hurt competitors in ways you may not have expected. I first recall learning about the tablet device a few months ago, after someone reported seeing truckloads of books being unloaded at Apple's offices. As more information "leaked" about the tablet device, Apple benefited by forcing consumers to wait for their new product release instead of buying a Kindle or Sony E-Reader. Customers are smart. They weigh the benefits and costs and make well-informed decisions. For many, it is worth the wait to see what the innovative engineers at Apple have cooked up in the labs. Thus, even though the product is not yet available for purchase, Apple has potentially stolen market share and at the very least delayed a customer's purchase of a competitor's product.

Announcing the release date of a new innovative product also stalls responses from competitors, who may be forced to drastically change their business model upon release date. Even worse, competitors may unnecessarily ramp up R&D spending or marketing  when the new product actually fails to live up to expectations.

The power of Apple is in its perception as an innovative company whose products and services transform the marketplace. Customers know a new product announcement means something that's potentially revolutionary - and that's power that competitors cannot control and power that demands a premium in product price and stock price.