2 ms·
I think you underestimate their ecosystem lockin for those who are bought in already. That alone will keep them going for decades unless antitrust intervenes.
by zmmmmm 5y ago
I think you underestimate their ecosystem lockin for those who are bought in already. That alone will keep them going for decades unless antitrust intervenes.
Apple's real vulnerability in my view is that most of their value arises from extraordinarily high margins which in turn are driven by perception / fashion. They run the risk that losing that fashion shine at any point will rapidly cause a catastrophic loss of marketshare. Staying perpetually in fashion with young people is notoriously difficult - their default is to orient away from whatever their parents did and do something else. It's very hard too look cool copying Mom and Dad.
- pphysch 5y ago> Apple's real vulnerability in my view is that most of their value arises from extraordinarily high margins which in turn are driven by perception / fashion. Well put. The iPhone is going on 15 years old. Once-hip iPhone users are becoming parents to children and teenagers that are getting their first devices. The iPhone will go the way of the Blackberry in the next 5-10 years and Apple will need to reinvent itself (again, without Jobs) in this time or see a rapid decline.