If you think back to the way the technology world used to be, Nokia was the undisputed king of the mobile phone world. Companies like Motorola and Sony Ericsson tried very hard to break the monopoly that Nokia held but to no avail. Nokia remained the most popular producer of sturdy, high quality mobile phones that were quite affordable as well which meant that people of all economic classes were able to buy them. However, the arrival of the smartphone spelled the beginning of the end for Nokia, and the once behemoth company ended up being acquired by none other than Microsoft after a valiant battle that it ended up losing.
An analyst at Goldman-Sachs has claimed that Apple might end up going down the same road, and it could happen sooner than you think. Basically, one of the biggest reasons that Nokia failed was that it saturated the market with its devices and then relied on customers buying upgraded versions of the same phone year after year in order to sustain its business. Sound familiar? This is actually exactly what Apple has been doing for quite some time.
Photo: Smith Collection/Gado via Getty Images
An analyst at Goldman-Sachs has claimed that Apple might end up going down the same road, and it could happen sooner than you think. Basically, one of the biggest reasons that Nokia failed was that it saturated the market with its devices and then relied on customers buying upgraded versions of the same phone year after year in order to sustain its business. Sound familiar? This is actually exactly what Apple has been doing for quite some time.
Related: Here’s How Apple’s Journey to $1 Trillion Tech Giant Enfolded Over the Past 42 Years (infographic)The CEO of Apple Tim Cook issued a letter to investors recently that stated that the company had sold fewer iPhones than it had expected in the first quarter. This is partially because of the fact that people are upgraded old phones instead of buying new ones, and it is the latter that can truly sustain a company. However, Apple might end up learning enough from the past that it would not let history repeat itself again. Only time will tell whether today’s tech behemoth would be able to survive in an increasingly saturated and competitive marketplace that constantly demands newer and cheaper products.
Photo: Smith Collection/Gado via Getty Images
