The Price Is Right

Horace Dediu:

The result is plain to see: Caring about the product means that it can be priced at a point which consumers care to pay.

Trouble is, judging by how Apple is valued, nobody believes that this is sustainable. Regardless of the evidence within Apple’s own history, it’s the exception, not the rule and the bet continues to be that they cannot continue to remain an exception.

Is Apple going to continue to repeal the laws that govern its industry, as it has for decades, or will it, as the market expects, abide by them?

Three possibilities:

  1. Apple is exceptional.
  2. Apple was exceptional, but no longer is.
  3. Apple was simply exceptionally lucky, and luck always runs out.

Saturday, 22 February 2014