How Apple works

25 09 2017

In a fascinating interview with Calcalist radio, the largest economic newspaper in Israel, Horace Dediu gave us a scintillating insight into how Apple works. Horace Dediu is a well-respected analyst who knows a thing or two about Apple.

“Apple cannot possibly be perceived as normal or average, but is analyzed as such. This is a company that breaks all categories, as based on the growth front and on the value or dynamic versus static. It just works differently. ”

Dediu posits that Apple uses the same strategy as an army.

“You have to look at Apple as adopted by the pattern of military activity. The army has no obligation to produce profits, but it has a deep commitment to achieving goals. Everyone focused and training for a specific task, and then another mission.”

No obligation to produce profits?

Maybe this is valid for Elon Musk’s company TESLA. But it’s not valid for Apple. During Steve Jobs’ time as CEO it was Tim Cook who optimized the supply chain and so laid the foundation for Apple’s growth. On the other hand Tim has strong beliefs manifested in a statement he made in 2014:

“If you only want me to make things, make decisions that have a clear ROI, then you should get out of the stock.”

So both is possible, strong beliefs and success. It can be summarized as follows:

Everything needs some custom artwork. Top designed products increase desirability and desirability always goes along with profitability.

Thanks for dropping by.


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