

Boomer Apple
9 snips Sep 10, 2024
The discussion dives into Apple's shift from a hardware-centric business model to one focusing on services and software, particularly AI. Insights reveal how this transition affects consumer expectations and pricing strategies amidst inflation. The analysis highlights the company's financial landscape, emphasizing the balance between hardware revenues and service offerings while navigating competitive challenges. This evolution underscores the potential impact on Apple's future profitability and its identity as an innovation leader.
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Apple's Middle Age Strategy
- Apple's shift towards becoming an incumbent in a mature market suggests a change in strategy.
- This involves focusing on higher iPhone prices, selling more accessories, and growing services revenue.
Pricing Like a Services Company
- Apple's decision not to raise iPhone prices during inflation suggested a focus on services.
- Lowering the price of hardware increases the install base, which benefits a services company.
Misjudging Apple's Shift
- Ben Thompson incorrectly predicted Apple would raise prices, clinging to old assumptions about the company.
- He realized Apple is changing and becoming more services-oriented.