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Apple 'Confirms' iPhone 7, iPhone 8 Hardware Changes. Here's The Lesson You Can Take From It

This article is more than 5 years old.

I previously covered the rule of bridges. Today we’ll look at how Apple is applying this rule to their business as the result of a German lawsuit…

Concept creator

Reuters released an official statement from Apple. In it, Apple said that modified versions of the iPhone 7, iPhone 7 Plus, iPhone 8 and iPhone 8 Plus, are now selling in Germany.

What Has Been Modified?

The German handsets have faster Qualcomm modems in them. Non German handsets use the slower Intel modems.

In fact, more than 1M user tests across T-Mobile and AT&T showed typical gains of 53-68% using Qualcomm modems (and as much as 97-192% in some tests).

Why Was There A Modification?

Unfortunately, it wasn’t due to performance.

Apple was sued by Qualcomm, in Germany. Apple says that Qualcomm is taking part in illegal patent practices.

Qualcomm said that Apple was using some of its ‘battery power saving technology’ in chips made by manufacturer Qorvo. These chips appeared in the handsets that also used Intel chips.

The German court agreed with Qualcomm. They banned Apple from selling any more of the phones with Intel chips in it, in Germany. A similar major case between the two companies goes to trial in the US, in April.

How Did Apple Respond?

In an official statement, Apple said “Qualcomm is attempting to use injunctions against our products to try to get Apple to succumb to their extortionist demands...To ensure all iPhone models can again be available to customers in Germany, we have no choice but to stop using Intel chips and ship our phones with Qualcomm chips in Germany.”

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Where Does The Rule Of Bridges Come In?

Apple was ordered to stop selling its iPhone 7, iPhone 7 Plus, iPhone 8 and iPhone 8 Plus handsets in Germany. Of course, if Apple cut all sales of these handsets, it would have meant losing a major revenue stream from its European market. That is not something that Apple can allow.

In response, they used the rule of bridges to build a workaround. Here’s a rough outline of how this process would have looked:

  • Understand their ‘present situation’ – after the German court’s decision, Apple was not allowed to sell its phones with Qorvo/Intel chips, in Germany.
  • Know their ‘ideal future situation’ – Apple wanted to continue selling its phones in Germany.
  • Build the value bridge – Apple created a phone without Qorvo/Intel chips in it.

Apple could have sat and waited for a court appeal to go through. If it did this, it would have lost potentially millions of dollars in iPhone sales.

Instead, Apple went to work and thought on a macro level and built a solution that worked. This one of many strategies that Apple uses to win in business.

How will you use the rule of bridges to win in business?

__________

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