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That’s not IBM. That’s not HP. That’s Dell.
But you’ll notice the trend. Everyone is getting out of the PC business because it’s a shitty business to be in.
IBM was way ahead of the curve (and is reaping the rewards as a result). While seemingly insane at the time, HP had the right idea last year (then backtracked and got burned last quarter). Now Dell.
You often hear the argument that Apple will eventually be squeezed in their high-margin hardware businesses. That cheaper components will drive costs down and cheap products will win. But that “win” comes with an asterisk. It’s a short-lived win. Eventually, it will turn to a loss both figuratively and literally.
One of Apple’s strengths is the quality of their products, which allows for better margins. But their real strength is staying ahead of trends. Apple dropped “computer” from their name in 2007. They saw the writing on the wall. They still make computers, but they have long since become a secondary business massively trumped by other businesses (first the iPod, then the iPhone, now the iPad).
Dell lacked such foresight. Maybe it’s too late now, or maybe not. But I like John Gruber’s suggestion.
(via marissagagnier)
(Source: brainyquote.com)