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I think Apple has it's issues, but isn't this textbook Innovator's Dilemma? Newer vertical looks small compared to established vertical, thus dismissed. $400 e
by rtpg 10y ago
I think Apple has it's issues, but isn't this textbook Innovator's Dilemma? Newer vertical looks small compared to established vertical, thus dismissed.
$400 every two years (assuming 50% profit per phone!) is just $17/month. If Apple can convince you to pay for 2 or 3 of its services, then they're gold.
Where does the "11 years" comment come from though? How do you figure that?
- tmoullet 10y agoI assume he means the P/E ratio which is 10.79 right now.
- andruby 10y agoIf you're counting profit on the phone, you need to compare that to profit from the service. I doubt they are running Apple Music with a 50% profit. Most services are probably being priced close to cost to gain market share.
- rtpg 10y agoYeah that's a good point. I don't really think these services are "at cost", though: isn't the whole point of this industry that marginal costs are super low?