I looked at everything from videogame companies to the early PC
pioneers (companies like Commodore and Atari), and I found an
interesting pattern in their financial results. The early symptoms
of decline in a computing platform were very subtle, and easy for
a business executive to rationalize away. By the time the symptoms
became obvious, it was usually too late to do anything about them.
The symptoms to watch closely are small declines in two metrics:
the rate of growth of sales, and gross profit per unit sold (gross
margins). Here’s why.