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The distinguishing feature of a tech company is a marginal cost of servicing an additional customer approaching 0. Spending insane amounts of money carelessly a
by dclusin 7y ago
The distinguishing feature of a tech company is a marginal cost of servicing an additional customer approaching 0. Spending insane amounts of money carelessly and calling yourself a tech company doesn't make you one.
- erikpukinskis 7y agoIs that true of Apple? I guess it might be if we’re tracking dollars per use-minute. It is probably true of Xiaomi.
- rightbyte 7y agoThat might be a software company without customer service.
- KaoruAoiShiho 7y agoThere has to be a better definition than this, that's true for any company with great economy of scale.
- dclusin 7y agoThere's a sibling post to mine that has a link to a blog post elucidating on what a tech company is. They go further than just 0 marginal cost. But that's the biggest one, and why tech companies justify such a big PE ratio.
- lozaning 7y agoIm a big fan of this article defining what is and isnt a tech company: https://stratechery.com/2019/what-is-a-tech-company/ https://stratechery.com/2019/what-is-a-tech-company/
- mbesto 7y agoThe fact that there is no generally agreed upon definition tells you everything about its definition.