Bizarre Products Disrupt

by Christopher Paul on November 12, 2012

Horace Dediu talking about Apple’s recent stock drop. As usual, he puts a great deal of historical context. But I think this is my favorite part:

When a product is understood the stock is mildly desirable. When a new product appears the future is hazy and the stock is undesirable. But that haziness hides potential but up and down. New products is what innovators produce. Bizarre new products is what disruptors produce.

He’s arguing that the market doesn’t understand Apple or its products. Hence the drop in price. When disruption occurs, the markets freak out a bit but things come roaring back when they see the results of that disruption.

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