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Is the Apple business model sustainable?
Apple stockis currently over $600 a share, and some analysts say it can't stay that high and others say it's possible to break $1000 a share if it really cracks that China market. But I'm concerned that the business model, not just for this company but others as well, is unsustainable. The model is this constant push to come out with new bells and whistles. You buy one Apple product and it's already obsolete before you walk out the store. Is it possible that eventually the consumer will become tired of the need for constant upgrades and want some tech that does not have this built-in obsolescence?
What do you think?
David Hamilton 50+
Ken brown 30+
That Ipad2 will last you ten years.My desktop will last me 5 if i'm lucky but it's power requirements is starting to make me rethink whether it's worth holding onto to the old buick.
Ady Los Zonga
If you brought the first Apple phone, the Iphone1 you noticed how crap the camera is. At that time, a 5mp camera was common on some cheap phones.
You also noticed that only after updating your phone 4 times you got a decent camera on the Apple Iphone4 - after paying aprox. 1600 dollars to Apple.
This is slow realising of technology and for now Apple was successful using it. Slowly realising technology and making your customers to pay for any small update like memory (witch becomes more and more cheaper) it shows the way Apple (or people behind Apple) are using they current customers to grow they business using vicious marketing and business tactics.
There are new times now and this ''schema'' will no longer work in the future.
Verble Gherulous 20+
Plus, over the years I've realized that it's the small ticket items that really cost the most in the long run.
Apples knows this and does it very well.
But please, can you tell me what are the "new times" and how will this profit model no longer work?
Ady Los Zonga
Apple business holds the same ''secret'' as any other business in this days - create something unique, buy as many resources at a low price, buy the cheapest work force you can find, automate the process, advertise - advertise - advertise, sell it at the highest prices and usually on the highest markets.
I don't believe that most of the workers of Apple are affording the new IPad - maybe with one year payment - but this is irrelevant to Apple.
What time has to do it? Well i read an article that in the moment the lunched the mission to the Moon, the data calculation power used is now available in a smart phone. And another article that said that the Military uses technology that for us it will be available 50 years from now.
Slow release of technology is a business model that is based in an economical concept 'one pice for every human' - this is not Economy, is waste.
Technology should be rented - how many times do you need your drill, let's say? Well maybe a couple of times in the year but for that you need to buy a drill right? What about getting one for a small fee - having a place where you can pay a small annual fee and rent the things you need for your DIY projects.
This may be applied to all things that usually get stocked in your garage or in attic - things that you buy but use rarely.
The current economic system is a waste system that has nothing to do with economy.
Gabo Moreno 100+
Verble Gherulous 20+
Christian Lemke
Verble Gherulous 20+
Salim Solaiman 50+
Sustainable organisation successfully changes it's busniess model according changing market/customer/consumer need /demand/,motive/desire....
After some lag period apple itself did that in past
The other point mentioned about.....short life cycle of apple products......with current trend of consumers' demand who don't seem care much about sustainability of a product they buy ... sothat's the right startegy for time being....moreover innovantion is not able to immediately capture the whole market....it first it only captures 2-3% innovative customers only , while rest still sticks to the past product/s......
Krisztián Pintér 200+
(even if i use a 11 years old nokia 3310)
Zdenek Smith 100+
Technology does not have built-in obsolescence. Rather, one piece of technology depends on many other pieces of technology (software and hardware) to work. Both hardware and software stops being supported by their makers at some point so it is harder for someone to continue to use that technology esp. if something goes wrong.
As a consumer you have the choice of not purchasing certain technology at all (like smartphone) or stay with each device as long as you can. Some people buy a new device as soon as one is available but I think that is a personal choice.
In terms of consumers getting tired, this is similar to fashion where some never get tired to get something new and exciting esp. the younger generations that want to be different.
Verble Gherulous 20+
I mean, this thing is slick as can be, do I need slicker? What I'm really asking for perhaps is just to give me a piece of tech that can really grow with each new OS advancement, say, keep this 2 and update for the speed of the newer models.
But as that relates to Apples business model, On the same article about Apple's stock price it mentioned that Aaple is now in a position where it HAS to come out with something new and exciting every few months or it will suffer. I can ony imagine the pressure. Can it really continue to WOW the public with new shiny toys every other week?
Zdenek Smith 100+
Verble Gherulous 20+
Beyond my secret desire to get all new bells and whistles myself without having the disposable cash to keep up with it all, I'm also concerned about a business model in which a major company HAS to come up with something - anything - so long as it is new. Otherwise, it is considered irrelelevant (as someone else stated about Microsoft in this conversation)
In short, this business model just has all the feel of how Jack Kerouac lived his life. He would stay up on bennies for an entire week, no sleep, crank out a new novel, only crash and sleep for days from sheer exhaustion. Some day these companies,and the public, are going to crash from sheer stuff-overload.
At least that's the way it seems.
Kevin Tinholt
Or they will have to start production in Africa, but last time I checked the continent was overwhelmed by human rights reporters.
pat gilbert 50+
Verble Gherulous 20+
pat gilbert 50+
"Is it possible that eventually the consumer will become tired of the need for constant upgrades and want some tech that does not have this built-in obsolescence?"
I don't understand how that will help. What you suggest is to not have innovation which is what gives us our standard of living. In other words your question is non sequitar.
By the way one share in Berkshire Hathaway is $120,000.00
Verble Gherulous 20+