According to Goldman Sach’s, history isn’t repeating itself, because the situation and circumstances are quite different this time around than they were back in the 80’s, and I definitely have to agree.
Back then, Apple was never a dominant player in the computer market. They had the first real mass production personal computer for home use, but they never really made inroads into the corporate market, where IBM and their MainFrame computers and PC’s dominated.
An Article from BusinessInsider.com says in the 80’s:
Computing devices were largely bought by corporations. And they liked IBM and its PC clones. Those corporate buyers stayed on the Microsoft platform for years because they were comfortable with it, and there were applications for it.
This is changing.
But the situation is quite different now:
Today, only 30% of internet connected computing devices are personal computers. And 85% of those purchases are now made by consumers, not corporations. Those consumers are bringing their devices to work, thus weakening Microsoft’s grip on the enterprise.
And as a result:
Apple is one of the most beloved consumer brands. With 85% of computing purchases coming from consumers, it is in a better position to avoid what doomed it in the eighties.
Then, there’s the iPad. Apple had no such companion product in the past. Sales of the iPad reinforce sales of the iPhone, which reinforce sales of the iPad. Once people get into Apple’s ecosystem, which is loaded with apps, they tend to stick around.
Without question, Apple could still get decimated. Microsoft, Amazon, and Google are all selling competing tablets. Microsoft and Google have smartphone operating systems trying to beat the iPhone. Google’s Android has taken huge amounts of market share.
But, if Apple gets decimated and relegated to a niche player on the cusp of going bankrupt, it’s going to be for reasons that are very different than why it lost in the eighties.
Read the full article here: http://www.businessinsider.com/how-apple-really-lost-its-lead-in-the-80s-2012-12
What do you think?
Is Goldman Sachs right, that the circumstances are significantly different this time around and Apple will stick around and thrive this time, or is Apple going down the same road and without Steve Jobs to resurrect them, doomed to failure this time around?
Please post a comment below to let me know your thoughts, and don’t forget to Like this and post to Tweet about it.
Have A Prosperous Day!