Tuesday, 1 September 2015

Apple & the Innovators Dilemma

According to Christensen, to innovate and keep the business healthy over the long term, you almost always need to eat your existing business. Here is Tim Cook's view, which is enlightened and explains much of Apple's continued success:


"Our core philosophy is to never fear cannibalization. If we don't do it, someone else will. We know that iPhone has cannibalized some of our iPod business. That doesn't worry us. We know that iPad will cannibalize some Macs. But that’s not a concern. On iPad in particular, we have the mother of all opportunities because the Windows market is much, much larger than the Mac market. It is clear that it is already cannibalizing some. I still believe the tablet market will be larger than the PC market at some point. You can see by the growth in tablets and pressure on PCs that those lines are beginning to converge."


(Source: Q1 2013 earnings report)
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