“At some point in a big, successful company’s life, it comes up against the problem of the law of large numbers. In the simplest terms, a fast-growing company can’t keep growing at the same fast rate forever. It eventually has to slow down,” Om Malik writes for The New Yorker. “For years, people have been looking for signs that Apple is finally hitting its growth limits. And this year Apple revenue fell for the first time since 2003. The same concerns face other giants in the tech economy: Google (now part of the parent company Alphabet), Microsoft, Amazon, and Facebook.”
“And, yet, for a brief time in July, the stock markets, arbiters of future fortunes, anointed those five technology companies — Apple, Google, Microsoft, Amazon, and Facebook — as the top five American companies by market capitalization,” Malik writes. “I can’t speak for the mind of the markets, but I do see these companies getting even bigger and more central to our lives.”
“Our economy, for a long while, has been transitioning from one reliant on industrial strength to one based on digital information. The next step in this transition is a digital economy shaped by connectivity,” Malik writes. “High double-digit growth rates on top of already impressive revenues remind me of an aphorism — the big get bigger. ”
Much more in the full article here.
MacDailyNews Take: Yup. It’s the ecosystem, stupid.