Interesting article in today’ s AFR – margins being squeezed on Apple’s smartphones as the device becomes a commodity.
When I had my 1st generation Sony Ericsson P800 almost 10 years back, I could never have thought his $2500 gadget would one day become a commodity item… but then it happens to “us” all over time with Moore’s Law et al.
Surely Apple has to accelerate development of its’ iWatch now to break a new product category? (they’ve increased their R&D budget big time this year).
Or perhaps they’ll sit back as with the Smartphone market, let others lead (e.g. Sony – Dick Tracey-like which I posted here previously), and then roll out the category-defining product, and watch Google’s mish-mash solution grab market share.
Regardless – please hurry up! There’s only so much more life I can squeeze out of my iPhone4, reinvented with an awesome Book Book case. Except I look like a Mormon. Which I quipped to a guy last weekend, who awkwardly turned out to be a Mormon.