Rivergater
Member
- Jan 15, 2002
- 171
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The answer to the question is so simple:
Apples hasn't switched to x86 because they don't want to compete directly with Microsoft. Which company in their right mind would?
If you take a look at a basic economic text, you'll read about how in monopolistic competition (which is basically the form this industry takes), firms will try to compete by differentiating their product so they don't have to compete through price.
By sticking with the technology they've been using, its a form of product differentiation. Remember also when Apple licensed its technology out to other companies, they almost died. The commoditization of their hardware was a terrible strategy for them at that time (maybe if they tried it at a different stage of the business, it would've worked). It was only after Jobs came in and bought back those licenses did Apple reemerge as a strong company (there were other facts in this as well but I won't list).
Apple doesn't want to be in the business of producing commodities. They don't want to make a computer that you can compare to PCs. They are doing well with this, because even in this thread, there is a consensus (or debate I should say) that its an apples to oranges comparison. They want to make an electronic product that cannot be compared to PCs and that have other elements of value besides just being able to crunch data, calculate, etc. They want their products to be more like a home appliance or a personal appliance. Its a great strategy for them since they are a niche player.
EDIT: grammar.
Apples hasn't switched to x86 because they don't want to compete directly with Microsoft. Which company in their right mind would?
If you take a look at a basic economic text, you'll read about how in monopolistic competition (which is basically the form this industry takes), firms will try to compete by differentiating their product so they don't have to compete through price.
By sticking with the technology they've been using, its a form of product differentiation. Remember also when Apple licensed its technology out to other companies, they almost died. The commoditization of their hardware was a terrible strategy for them at that time (maybe if they tried it at a different stage of the business, it would've worked). It was only after Jobs came in and bought back those licenses did Apple reemerge as a strong company (there were other facts in this as well but I won't list).
Apple doesn't want to be in the business of producing commodities. They don't want to make a computer that you can compare to PCs. They are doing well with this, because even in this thread, there is a consensus (or debate I should say) that its an apples to oranges comparison. They want to make an electronic product that cannot be compared to PCs and that have other elements of value besides just being able to crunch data, calculate, etc. They want their products to be more like a home appliance or a personal appliance. Its a great strategy for them since they are a niche player.
EDIT: grammar.