system two

system two
start-up thinking in the enterprise

Tuesday, 28 July 2009

is apple's business model broken?

3 small pieces of news which have caught my attention in the last couple of days which give me a sense that apple might still have an issue long term, with their (relatively) proprietary business model.

The first is chat about flash on the iPhone. It seems bizarre that a piece of technology such as the iPhone could exist without flash - but it does - and is likely to do so for the time being. Adobe and apple don't mix - but will users vote with their feet once the allure of the iPhone's core touch technology becomes ubiquitous?

The second is Spotify's launch on the iPhone. An obvious move but one which is in direct competition with apple's existing music business model (although of course they are hardly wedded to the per track music model).

Lastly - we have today's news about google voice here.

A gazillion iPhones sold means a lot of people view apple's market position as unassailable - but it doesn't take much to destabilize a business these days - and if a sense grows within the early adopter community that apple's walled garden approach is constraining freedom of development - it won't take long for the herd to adopt android or another key mobile device as its poster child.

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