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There isn’t any evidence of this yet. These sales are in the home turf of Tesla’s bigger three competitors, and these aren’t revenues, they are units. Would you
by valuearb 6y ago
There isn’t any evidence of this yet. These sales are in the home turf of Tesla’s bigger three competitors, and these aren’t revenues, they are units. Would you rather sell one $80K car for a $10K profit or four $20k cars with a $1k profit in each?
It’s like saying Apple is in trouble because of $40 Android phones.
- etimberg 6y agoThis line of thinking happens in a lot of tech companies and it's why these companies eventually die. It's documented in [0] though the book is incredibly hard to read. The gist is that companies very rarely move downmarket when threatened with competition and instead move upmarket to protect their high margin customers. Over time, the entry level competitors gain more and more features and move up, squeezing the original players. So you're correct that a $40 Android phone is not a worry to apple, but when those manufacturers start releasing a $300-$500 phone that has most of the features of the iPhone, that's when Apple has to be worried. But by the time they notice, it's too late. If we look at [1] we see that iPhone sales peaked in 2015, and then have been slightly down since then. But it took until 2020 to release a new lower-end phone. 0. https://www.amazon.com/Product-Strategy-High-Technology-Companies/dp/0071362460 https://www.amazon.com/Product-Strategy-High-Technology-Comp... 1. https://www.statista.com/statistics/276306/global-apple-iphone-sales-since-fiscal-year-2007/ https://www.statista.com/statistics/276306/global-apple-ipho...
- valuearb 6y agoApple is always doomed. So doomed they just released a $399 phone that’s faster than any android device ever made. It’s not just the device, it’s the system and that includes software.