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"If you're doing business the same way you were 5 years ago, you're going out of business." I'd say they were more like Nokia than AT&T.
by gizajob 2y ago
"If you're doing business the same way you were 5 years ago, you're going out of business."
I'd say they were more like Nokia than AT&T.
- dangus 2y agoNot really true in an end-state market where only monopoly players exist. Nokia didn't exist in the end-state smartphone market. Smartphones were nowhere near done innovating when they were dominant, and now they are essentially a completed product. AT&T, Verizon, and T-Mobile have done essentially zero innovation and they do great business. Duke Energy does zero innovation and they do great business. Coca-Cola does zero innovation and they do great business. Do their businesses incrementally improve and become more efficient? Yes, but that's much different than being an innovation company. Again, the mistake you are making here is mischaracterizing the type of business Apple is in based on the business they were in 10 years ago. Apple is not in an innovation business anymore. Most of its product lines are in areas where no startup can possibly enter the market and compete. Apple is becoming a company where their financial functions outweigh their actual business (another example of a business like this are the major airlines like United and Delta that make more revenue on credit cards than actual flying). Again I had the example of services bringing in more money than some of Apple's major product lines. Apple storing your family photos on some computers they didn't design in a data center they might not even own is likely a more profitable and higher revenue business than the incredibly complicated hardware that they are selling you.