Apple and Its Ever-changing, Unchanging Ecosystem

Image credit: Apple
Image credit: Apple

In case you missed Apple’s latest keynote this week (not sure how), the company announced the new seventh-generation iPad, Apple Watch Series 5 and iPhones 11, 11 Pro and 11 Pro Max and gave updates on retail, Apple TV+ and Apple Arcade.

Naturally, the event has already been covered to death. The coverage may be summarised as follows:

  • ‘Midnight green? What were they thinking?’;
  • ‘So what’s the point of the iPad Air now?’;
  • Will the game demos ever stop?!’;
  • There’s really nothing that they can do to improve the watch and I doubt that I’d need to buy a new one even if… OMG AN ALWAYS-ON DISPLAY!!!’; and
  • It’s great that they’re giving Apple TV+ away for a year with new devices but yeah I’m not so sure about it… look at Disney+!’.

It’s this last point about Apple’s emphasis on services like Apple TV+ that has really gripped most fans and commentators in recent times when looking at Apple events. So much of it is pure speculation at this point. Reflecting on the event, however, I found the most impressive and important part of the whole presentation to be the video that was shown at the very beginning, called Wonderful Tools. It is an antidote to this concern.

When this started, I was absolutely transfixed. Apple encapsulated its design philosophy and history in under two minutes. It set the scene for the product announcements that followed.

Of course, as the keynote progressed and the new announcements came and went, the Web (Twitter, really) lit up with users obsessing about specific features, colours and the direction of Apple Arcade and Apple TV+. Even with positive reactions to certain elements of the products and services, there is still a prevailing idea that with this big push for services and (perceived) product evolution rather than revolution, Apple is somehow different from what it once was. The event received a bit of a ‘meh’ from many. The hardware focus is apparently at risk.

Yet I don’t believe that Apple has changed much at all. Wonderful Tools is evidence of this and that Apple retains a focus on hardware. Reviewing everything that was featured in the video, the only things that were strictly services were Apple TV+, Apple Music, Find My and (to a degree) Siri.

Apple enthusiasts and analysts say that specs aren’t everything, yet they often focus on tiny details rather than the broader narrative. Looking into the fairly recent past, we can see that Apple has been telling the same story over and over again, reassuring its customers of its commitment to an ecosystem that is centred on hardware.

For example, in one of my all-time favourite Apple ads, Designed Together, Apple showed off its consistent design language in hardware and software with the iPhone 5c.

In the masterful piece Intention, we see Apple telling the story of ‘a thousand nos for every yes’ in what it chooses to make and how it makes it. In my view, this is the epitome of Apple’s brand storytelling.

Now, some will say that Apple no longer lives up to this ideal. How could it? In a world where services are now on the rise, Apple will attach a fee to whatever it can. Apple simply wants to turn everything into a service and is hellbent on creating new ways to make money out of its existing customers, as it sells fewer iPhones each quarter over time.

Sure, Apple will never say no to more cash but the thing is: none of these services are really new; they are just old ideas recycled.

Look at Apple Music and the more recently announced Apple TV+ and Apple TV Channels. They are not new services; they are the inevitable streaming replacements for iTunes. You know how people say that Apple has never been able to do services? Apple built the world’s most successful mainstream digital music service and it’s now dying a slow death as people turn to streaming. Something has to replace it when people eventually stop buying and owning music.

What about Apple News+? Well, back with the launch of iOS 5, Apple launched the clunky and now defunct Newsstand. In addition, during the early days of iPad, Steve Jobs announced the first iPad-only digital publication with News Corporation, The Daily (also gone). Right, so Apple isn’t really in any new territory here; it’s just a different app with a rejigged distribution and payment model.

What about the way the company takes users’ money for extra iCloud storage? All of this cloud stuff is sort of new! Well, again, before iCloud there was eWorld, iTools, .Mac and MobileMe, which all offered some different take on the same old idea of an online service that bound products together. Apple has long charged for this kind of thing.

Aha! What about Apple Arcade?! That’s a new service entirely! Not exactly… remember Game Centre, Apple’s earlier idea of a gaming service? Game Centre’s intention was to provide a way for Apple device users to play and compete in games through the App Store, encouraging them to buy more games. (It continues to hang around kind of invisibly today.) Apple Arcade is just a clearer, more comprehensive subscription service that does away with the confusion of old. It’s like Apple Music but Apple just funds the content.

Let’s not forget that the App Store in general is also perhaps Apple’s greatest service, in addition to iMessage, which is in itself a social network—the definition of a service. Oh, now that I think of it, Apple Maps is also a service, along with the entire Apple Store experience, including sales, support, classes and Today at Apple sessions, spread across physical and online environments.

Back in June, I wrote a piece called Challenging Three Apple Myths, discussing the following common ideas:

  1. Apple can’t do services well;
  2. Apple is doomed without Steve Jobs; and
  3. Apple can’t walk and chew gum at the same time.

Looking back and taking all the aforementioned services into account, I can now see that I missed the great modern myth about Apple, which appears in much of the reporting about the company today:

Apple is turning increasingly into a services company.

Observing the video examples above and tracing Apple’s evolution of the same service ideas over and over again, the reality is in fact the opposite:

Apple has long been a services company.

People are so obsessed by what is new and shiny or more specifically, that which is rebranded, that they forget what came before. They fail to see how the same ideas are recycled. It’s the only way that Google fans could possibly forgive the company for so many cancellations of online products and services, which then come back in some other form down the line.

Especially since Steve Jobs’s announcement of the digital hub strategy, Apple’s focus has always been hardware that runs its own software, all tied together by integrated services.

Apple hasn’t just realised that it needs services and must charge for them because the iPhone is a maturing cash cow; instead, Apple has finally worked out how to make high-quality, long-term services to replace older ones and that also fit the overwhelming trend of the subscription model. Apple didn’t get games and now it kind of does. Apple was slow to the catch onto the idea of streaming but now it’s getting there.

As Apple’s ecosystem continues to transform and grow ever more complex, in essence its basic philosophy and foundations has really remained unchanged: create beautiful objects that are underpinned by great software and joined by useful services. That was the point of Wonderful Tools. Services aren’t distracting from hardware; they’ve always been there and now they’re just getting better (for a more obvious fee).

For those who still aren’t convinced, they should ask themselves this:

If Apple sees itself as a services-only company in the future, on what hardware would it actually run?

Although much of the user experience rests with systems macOS and iOS and the connective tissue that is iCloud, without hardware, there is no Apple. It is the company’s identity.