Monday, November 29, 2010

How Apple Had a Spectacular Year

Apple broke four consecutive quarterly revenue and profit records and amid the worst recession in decades, hired thousands while others cut jobs, but what most distinguishes Apple is that while other tech titans spent 2010 cutting costs and acquiring new technology through mergers, this $65 billion company has been relentless in innovating like a startup and ruthless in promoting technologies that disrupt its own product lines. '"It's been an awesome year. The frequency of new stuff just boggles the mind," says Charles Wolf, an analyst with Needham & Co. "There is no company that is remotely close to what Apple is doing. They are the Energizer Bunny." In September 2005, Apple killed off the popular iPod Mini to make way for the the iPod Nano; Apple openly acknowledges that the iPhone is cannibalizing its iPods — and they don't seem to care; and the iPad tablet could ultimately threaten its core laptop business. "[Apple] has a different cultural mind-set," concludes Wolf. "They are acting like a startup, though they are becoming a $100 billion company."'


Note on the bolded text. Apple does not follow the old business model of making a product and protecting the heck out of it even if it is obsolete. For RTS gamers, thats a "turtling" strategy. Apple knows that everything becomes obsolete sooner or later usually by a new product that is released by their competitors. So they plan ahead by innovating and making new products on their own, similar to a blitzkreig strategy. That way, competitors are forced to always play catch up.

I'm not a fan of apple but I have to give credit where credit is due.

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