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I am not sure if this is what you meant, but cogent means convincing. 1. Are you convinced that going forward, Apple's most "sustainable advantage" is economi
by socratic 15y ago
I am not sure if this is what you meant, but cogent means convincing.
1. Are you convinced that going forward, Apple's most "sustainable advantage" is economies of scale? Do you believe that consumers primarily buy Apple products based on price?
2. Do you believe that building up economies of scale would take Dell or Samsung a "decade"?
(These are the primary claims in the conclusion of Gruber's essay.)
- 2muchcoffeeman 15y ago1. The economies of scale may not translate to lower prices for the consumer. Consider their mobile offerings. Apple has a tiny portion of the handphone market share, but makes huge profits. They appear to get massive economies of scale. If you sell a handphone cheaper than the iPhone, you make very little profit and if Apple ever feels threatened, they can just slash their own prices and still make more profit than you. Until then they charge what the market will bear and make huge profits that they reinvest into their business increasing their lead. 2. It's possible. In 2009 Apple purchased all of Samsung's NAND. At the time that was apparently over 40% of the world's NAND.