“All companies must invest to stay relevant, but investments are too often made in the hope of keeping a technological edge on competitors or entering new business segments,” Bhatia reports. “Such considerations are always secondary for Apple; the primary consideration is always identifying and satisfying unmet customer needs. The distinction sounds fluffy and abstract, but the resulting difference in returns is concrete.”
Bhatia reports, “Consider, by way of example, that in the last decade Microsoft has bought 104 companies versus Apple’s 11. What’s more, over the same period, Apple has spent $8 billion, or one ninth of Microsoft, on R&D — and yet came out with three radical new products that now dominate their categories.”
Full article here.
