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The five pillars of revenue are: 1. Selling a thing. 2. Selling add-ons and upgrades to a thing. 3. Selling other things to people who bought one of your thi
by a4isms 4y ago
The five pillars of revenue are:
1. Selling a thing.
2. Selling add-ons and upgrades to a thing.
3. Selling other things to people who bought one of your things.
4. Preventing people who are subscribing to your thing from switching to somebody else's thing.
5. Preventing your competition from commoditizing things and driving prices down.
(There aren't really just five, there is no one "theory of everything," it's just a literary device.)
CarPlay is obviously #1 "Selling a thing," manufacturers license it. But it could also be #4 "Preventing people who are subscribing to your thing from switching to somebody else's thing."
If automobiles all have their own proprietary interfaces or worse, Android Auto, people who drive cars may end up buying phones that integrate nicely with their cars and ditching their iPhones.
If my conjecture is correct, Apple is investing in CarPlay to protect the most profitable product the world has ever seen.
- NaOH 4y ago>But [CarPlay] could also be #4 "Preventing people who are subscribing to your thing from switching to somebody else's thing." The more reasons an existing user has to value something they already use, the harder it becomes for the user to switch. With few points of stickiness, it's easy for a user to check if an alternative has, say, similarities to features A and B. But if it's ABCDEFGHIJK, the likelihood of that user leaving drops dramatically. It's a common point that Apple does well iterating on its products, but that iteration goes beyond performance and capabilities into areas of stickiness.