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While the article makes mention of new product design and other issues where Apple could become like Sony, perhaps the two biggest near-term future risks for Ap
by nekojima 14y ago
While the article makes mention of new product design and other issues where Apple could become like Sony, perhaps the two biggest near-term future risks for Apple are disruption to its China-focused supply chain and a significant narrowing of the margin it earns on its current products. The China supply chain risk is often overlooked, but even if the disruption is short term, it could have significant impact on current and new product introductions. The margins Apple current has on iPhones, iPads, iTunes and apps are likely to face significant pressures in the coming 12-24 months from competitors, perhaps excluding iTunes & apps, unless the iOS market share also shrinks.
The uniqueness has been a significant factor in driving past high net earnings and could be quickly lost. I wonder how long it will be before Apple loses its "cool" factor, if it already hasn't begun with established key support bases, because of the near-ubiquitous of its products and the increasing lack of user uniqueness.