that Google’s CEO at the time, Eric Schmidt, saw the conflict of
interest collisions ahead and resigned (or was asked to leave) from
Apple’s board of directors.
Since then, the four giants have moved inexorably into each other’s
turf. At least two or three of them now compete in each other’s
markets, whether it’s advertising, music, books, movies, social
networks, cell phones—or lately, autonomous vehicles. But Apple
stands alone as a luxury brand. That difference presents an immense
advantage, providing fatter margins and a competitive edge. Luxury
insulates the Apple brand, and hoists it above the price wars raging
below.
For now, I see modest competition for Apple from the other
horsemen. Amazon sells cut-rate tablets. Facebook is no sexier than a
phone book. And Google’s one venture into wearable computing,
Google Glass, was a prophylactic, guaranteeing that the wearer would
never have the chance to conceive a child, as nobody would get near
them.
Apple likely has deeper moats than any firm in the world, and its
status as a luxury brand will aid its longevity. While the other three
companies, the alpha lions on the veldt of high-tech competition, still
face the prospect of an early demise, only Apple has the potential to
cheat death.
Denting the Universe
The cocktail of low-cost product and premium prices has landed Apple
with a cash pile greater than the GDP of Denmark, the Russian stock
market, and the market cap of Boeing, Airbus, and Nike combined. At
some point, does Apple have an obligation to spend its cash? If yes,
then how?
My suggestion: Apple should launch the world’s largest tuition-free
university.