January 18, 2013
To Get Ahead, Apple Must Put Jobs Behind
Robert Cringely, BetaNews
Scale is the second part of Apple’s core challenge. Anything the company does has to scale massively or it will be a drag on sales and earnings. We can see Apple play this out in its internal silicon development, which is the best (and highest margin) way for them to achieve hardware scale. Though Apple doesn’t sell chips in the merchant market, by making its own Systems On Chip the company is revolutionizing each of its product categories from within. Scale also comes from building an ecosystem around products. iTunes is an example of that for music and video. Apple makes money on the content but the content also builds demand for hardware. It’s a win-win. If Apple enters the TV market as rumored, it can only happen with a massive expansion of iTunes or some new...
TAGGED: Steve Jobs, Apple