Great read on how Apple overtook Microsoft because Microsoft was a dominant, sleeping giant. And now guess who is in that position…
Protecting your business model without innovating is a dangerous proposition.
I think even Microsoft would agree that they’ve been too concerned with protecting Windows over the years, to their detriment.” […]
Always cannibalize yourself.
“Steve ingrained in the DNA of Apple not to be afraid to cannibalize itself,” Mr. Isaacson said. “When the iPod was printing money, he said that someday the people making phones will figure out they can put music on phones. We have to do that first. Now, what you’re seeing is that the bigger iPhone may be hurting sales of iPads, but it was the right thing to do.” […]
Trendsetters are rewarded for taking risks, followers, well, follow.
Microsoft has repeatedly tried to diversify, and continues to do so under Mr. Nadella. But “it’s been more of a follower whereas Apple has been more of a trendsetter, trying to reinvent an industry,” […]
Now Apple is the prisoner of its own success. Only way seems to be down, the question is when.
Some investors worry that Apple could become the prisoner of its own success. As Mr. Sacconaghi noted, 69 percent of the company’s revenue and 100 percent of its revenue growth for the quarter came from the iPhone, which makes Apple highly dependent on one product line. “There’s always the risk of another paradigm shift,” he said. “Who knows what that might be, but Apple is living and dying by the iPhone. It’s a great franchise until it isn’t.” […]
Can Apple continue to live by Mr. Jobs’s disruptive creed now that the company is as successful as Microsoft once was? Mr. Cihra noted that it was one thing for Apple to cannibalize its iPod or Mac businesses, but quite another to risk its iPhone juggernaut. […]