Events in the world have reach a state of catastrophe. No, not natural catastrophes, though we have more of those than we need. The real catastrophe is the misinformation age. The interwebs were supposed to bring about an information superhighway that would turn the earth into a village.
Instead of a flood of useful, beneficial information to educate humankind, we’re awash in useless and salacious factoids, a toxic hell stew of partisan information, and idiotic thinking that poses as legitimate.
Here’s an example.
Poor Apple. Whatever can go wrong has gone wrong. The Apple is doomed memes are in full bloom and the resulting ridiculousness is being eaten by anyone who can read by not decipher.
How Apple’s business model backfired
That’s an opinion but too many will read only the headline or first couple of paragraphs and come away with a basic notion that Apple is failing.
Not. The. Case. Yet, the misinformation piles on.
Apple is an iPhone business — and now that business has stalled.
Well, which is it? Stalled? Backfired?
Verb; An attempt to fix something in which the fixing actually makes the situation worse for you. Common on the internet when an arguement “backfires” and makes you look stupid.
Using the term backfired to describe the performance of Apple’s business model seems to have, well, backfired.
There are many reasons for Apple’s drop in sales, but the main one is also the simplest: The smartphone market is mature and there is simply no more room for the kind of rapid growth we’ve seen in the past decade.
You would think an experienced business journalist would understand that smartphone sales– including iPhone– peaked a few years ago, and Apple’s actions since then, including a broader iPhone line and higher price tags on new models, would be understood. From higher prices Apple can discount, which spurs demand.
That’s kinda sorta mostly business 101. Oh, and it seems to anyone who follows Apple that the company’s product line is as diversified as any competitor; certainly more so than Google or Amazon, perhaps more than Microsoft, yet the iPhone maker and Samsung own most of the entire smartphone industry’s revenue and profits.
Sounds like a good business model to me, despite the smartphone plateau.
What else? Alang goes off on an odd tangent regarding the iPod as a model precursor (I have a vision of Steve Jobs bitch slapping the dude from the grave),
Apple’s own strategy of making its phones much faster than the competition and keeping them updated for years has ironically backfired, making a 2- or 3-year-old phone fine for most people.
Did that strategy backfire?
I suspect Apple knows exactly what it did by using older but faster iPhones to help broaden the line and expand the price range while maintaining gross margins. Note that CEO Tim Cook did not issue a profit warning? Why not? Didn’t the business model backfire? Nope. Apple is well diversified and profitable at every point.
These are some of the most awe inspiring words I’ve read this year. They are meaningless.
We are at an inflection point between different periods in the evolution of both tech and society. As one era has managed the remarkable feat of pushing the limits of capitalism, what comes next may take the form of something familiar — like shiny new technology that emerges in known historical patterns — or it may shake the ground beneath us.
The writer did not fully understand Apple’s business model and does not understand what will take place in the future.