Apple’s Vertical Health

by Christopher Paul on January 25, 2013

Ben Bajarin on Apple’s health and its long term prospects:

Companies today are faced with the reality that a hardware only business model is not sustainable. That business model always results in a ruthless race to the bottom. Companies who can add unique value at the software and services level can protect their hardware efforts. In mature markets the vertical model is the most sustainable and defendable model there is. So it is easy to see why others are on the verge of going fully vertical the same way Apple has been for decades. Which brings up an interesting point and it gets to the question of my columns title.

Almost every major company who is thinking long term is headed in a vertical direction. This is a model that Apple has used since the beginning. To put it another way, Apple has decades of experience executing the very model that many companies are hanging their future on. This does not mean that others will be successful implementing a vertical model, only that they believe it is the way forward.

This is a very reasonable analysis by Ben. He has so many other good points, too. After reading his take, it’s even more clear that Apple’s long term outlook is pretty strong.

via The Loop

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