Friday, January 29, 2016

Main Reason That Current Slowdown Will Force Some Out And Apple Comes Out Stronger

Here is the post from 360 Mac I want to add a bit on to.  It generally provides a good and rather obvious road map on the "coming tech apocalypse" and proclaims that Apple will weather it and come out even stronger.  I agree for the most part and I like to explain why.  Apple's products are aspirational but they are among the best on the market.  There is no second or third place among its competitors as far as premium products, services, and ecosystems go.  None. 

And as millions in developing countries join their own versions of the middle class, Apple will be primed to sell them the products they want and need.  Phones, tablets, computers, wearables, and, yes, Car Play-ready cars or even Apple cars.  Oh, yeah, stuff for the homes that are HomeKit enabled.  Oh, yeah, Apple TV and relevant services as well.  Perhaps, even banking with Apple one day.

None of this will happen overnight and given what it feels like at times is the snail-like pace in which Apple unveils features and services, there is a meticulous and well through out road map at Cupertino, Apple's HQ.  And even through downturns, Apple continues to pour on the R&D dollars. 

In a downturn, folks will hold onto their gears longer and that upgrade cycle will hurt a lot of companies. Even Apple to some extent but a mast majority of Apple's customers have greater net worth which means a great many of them will continue to upgrade regardless of the larger economic slow down. 

Apple's competitors will mostly be forced to cut back their own development cycle to reduce costs or go away entirely.  Perhaps, even get picked up by larger companies.  What it essentially means is that the experience gap between Apple and its competitors will grow wider. 

All of this is good for Apple even if Wall Street thinks otherwise.  This is a long game.  Product upgrades and entry into new markets does not happen overnight.  I'm sure in a couple of years, the consumer tech landscape will be vastly different and Apple will resume its double digit growth that Wall Street wants. 

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