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Apple’s Bold Platform Risk

October 17, 2015

Steve Cheney, in his interesting and good post entitled “On Apple’s Insurmountable Platform Advantage”:

In 2007, when Steve Ballmer famously declared “There’s no chance that the iPhone is going to get any significant market share. No chance”, Jobs was off creating a chip design team. If you study unit economics of semiconductors, it doesn’t really make sense to design chips and compete with companies like Intel unless you can make it up in volume. Consider the audacity back in 2007 for Apple to believe it could pull this off.

Read the whole piece. It’s great.

John Gruber commented on Cheney’s post, and one thought that struck a cord with me was this:

We should clarify one point from Cheney’s headline — Apple’s lead is formidable, not insurmountable. Nothing in tech is insurmountable.

Why did I notice that bit? Perhaps because of my view on this.

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Filed Under: Apple, Processors, R&D

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