The question of what’s next

WSJ

Kodak, Polaroid and Sears are all examples from the recent past of companies that held too tightly to an old idea. Today’s tech giants, ranging from Netflix (having already reinvented itself to be dependent on advertising-free streaming video) to Google parent Alphabet Inc. (counting advertising as 86% of revenue), should take note of those painful demises to avoid the same fate.

Apple’s mousetrap is anything but broken. Representing 60% of Apple’s revenue, the iPhone outsells 96% of the companies on the Fortune 500. The phone carries the bulk of the $545 billion valuation that Morgan Stanley assigns to Apple’s wider hardware business.

Apple, for the better part of the 2000s, was the master of the next big thing: the iPod, the MacBook Air, the iPad, the iPhone. Apple wasn’t always first, but its products were easier to use, thinner, cooler.

With the success of the iPhone since it arrived on the scene, the next big thing has been harder to find.

So what’s the next discontinuity? If we only knew, that’s big bucks. Hey, the 2 guys who invented aircraft leasing in 1973 put up $50K apiece and sold the company for $8 billion.

We read somewhere that the greatest invention of the 19th century was the bicycle. Not for long……

Leave a Reply