From an Apple business model reality check
"The accomplishments of Apple’s model are substantial. But the financial strategy that has worked so well for Apple is a risky one for less capable companies with weaker strategic positions. For them, aping Apple can just as easily result in too much debt on their balance sheets, precarious supply chains and deferred opportunities for investments.
The financial archetype defined by Apple — asset-light strategy, leveraged share buybacks and cash flow above all — is a high-wire act. Boards should guard against the temptation to follow Apple’s path blindly. Big investors, especially mutual funds and pension funds that represent so many individuals, should question the management of any company that does. Many of Apple’s imitators are more likely to mortgage the future than create it."Why Apple Is the Future of Capitalism -- NYT