Saturday, July 23, 2011

Why Apple's Success Isn't Spreading -

A single-instance category?

But Apple has become so dominant that is becoming more a threat—rather than a sentiment booster—to the rest of the technology sector. That isn't to say investors should ignore other tech players—they just aren't as likely to see the same kind of upside that Apple enjoys.

To be sure, plenty of companies, such as Qualcomm and Arm Holdings, ride the Apple coattails. But that can be a dangerous game. Apple has become a sort of Wal-Mart of techland, able to drive tough bargains with suppliers as it builds dominant positions in key device markets. One of its advantages is delivering sexy products at price points that don't break the bank. And gadgets tend to get cheaper over time, which means Apple will have to squeeze suppliers more if it wants to retain its profits.

Why Apple's Success Isn't Spreading -

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