🍎 Apple hyper-scale engine is purring
Most successful companies have slim chances of sustaining their future business because they are a one-trick pony. Not Apple.
Last month Scott Galloway discussed how Apple will probably do very well for the next ten years. His main argument is that Apple has mastered several aspects of business, from customer trust to supply chain and capital generation. But most importantly, they have secured not just one but several beachheads into the future.
Beachheads. Apple has established a beachhead in multiple businesses beyond its core hardware products, including payments (Apple Pay, Apple Card, Apple Cash), games (App Store, Apple Arcade), media (Apple TV+, Apple Music, Apple News), mapping (Apple Maps), cloud and email services (iCloud), and even advertising (App Store Search Ads).
This is a masterful way to escape the infamous innovator's dilemma that analysts oftentimes underestimate. Taken individually, these business lines are not always the best. No, Apple TV+ doesn't make better TV shows than HBO or have more content than Netflix. But it's paired with Music, News, and Arcade. Like understanding Moore's law, seeing business momentum building up and connecting the dots of seemingly disconnected services is hard.
Understanding the scale and the breadth of Apple's business is even harder. We're in 2022, and there's still no textbook or business class dealing with hyper-scale strategy.