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That’s what people have said over and over again. What’s the difference between BMW and Apple? Why doesn’t BMW need to get into a completely new product line al
by baxtr 8y ago
That’s what people have said over and over again. What’s the difference between BMW and Apple? Why doesn’t BMW need to get into a completely new product line all the time? (Outside of cars)
- pentae 8y agoExactly. Imagine how silly it would sound if someone said "Not sure about this new BMW CEO chaps, unless we see some innovation from the company like them developing a line of smartphones or computer tablets and an app store, we can safely say they are not properly innovating"
- sz4kerto 8y agoThere are two major differences. 1) BMW is a much smaller company, 15x smaller than Apple. Apple's valuation is partly based on them pocketing _most_ of the smartphone profits globally. There is no expectation like that towards BMW. Remember, stock market is a game about expectations. 2) Cars don't seem to be a winner-takes-it-all market. IT services are not always like that either, but closer. It doesn't make your life harder if your friend is using a VW and you're driving a Toyota; but it does make a difference if your friend is on iMessage and you're on Android. So there's a market force towards oligopoly.
- baxtr 8y ago1) so if size is an argument: does google need to have a new product every 5 yrs? I don’t think google has innovated outside its main product “search” (like a new category with a major source of revenue on the size of search). They’re doing just fine 2) that’s actually a strong argument pro Apple and not against them (that’s like saying: no one will ever use another search engine than google and because of that they’re growing bigger and bigger)