1. As long as Apple does not die, it will take a long time for Apple to fall from the altar, and it will even kill the major manufacturers in the market. In other words, do we always feel that each generation of iPhone has made smaller and smaller progress, more and more conservative, and feel that Apple's lack of innovation is getting worse? In fact, in the field of mobile phones, the progress of the Android camp is also getting smaller, and the parameters of the flagship phones are gradually approaching, and the homogeneity is obvious. The space for vertical elevation is getting smaller and smaller, and it is almost touching the ceiling determined by the physical and chemical properties. For example, the chip manufacturing process is almost at its peak, and the cost of going up is not worthwhile. This is a physical limitation; another bottleneck is the battery. Without a breakthrough across the ages, the performance of this generation of smartphones has improved to the end. This is the chemical limit. The exploration of the screen shape, notch screen, waterfall screen, fingerprint/camera under the screen, and folding screen are all experiments and they are icing on the cake. This is not just what consumers want.
In other words, in the mobile phone field, Apple’s own iOS+A series is the dividing line. You can say that Apple is gnawing at its old capital. However, it is difficult to see who can cause Apple in the high-end market by looking at the princes of the Android camp outside the circle. challenge.
It can be said that it is only a matter of front and back for everyone to arrive first. Apple’s choice of stability on the iPhone’s route is a very wise choice. Not making mistakes is the biggest goal for the current iPhone. In addition to mobile phones, Apple has been building an ecological wall of family buckets horizontally. This is the main reason behind Apple's two trillion market value. Wearable devices such as AirPods and Apple Watch, if separated separately, are companies with sales of tens of billions and a market value of more than 100 billion. Even an inconspicuous accessory such as the apple pencil can be sold under production. Apple’s family barrels really have to be connected together, just like playing a game of Monopoly. Apple has already bought the most golden lots to build a building. Consumers who stay here will unconsciously be willing to be willing for the brand. Pay a very high premium. In short, Apple has achieved a certain degree of monopoly, and it is still the top market. Apple will eventually fall one day, but it will certainly not be the smartphone of this generation that defeats Apple.
2. The essence behind Apple's high-tech veil: Has become a substantial consumer goods company
We must know that from a financial point of view, apart from R&D expenditure indicators, Apple no longer looks like a high-tech company. Today, Apple is more like Coca-Cola. The real reason for Buffett's investment in Apple is not because Buffett understands the profit model behind technology stocks, but because Apple has essentially become a consumer products company.
I would say that Apple is a consumer products company, and many digital enthusiasts must strongly oppose it. The leader of digital fashion and the disruptor of electronic devices, how can Apple be Coca-Cola? Let's use the financial report numbers to speak.
1. Almost as strong operating cash flow:
Regardless of its performance, the cash received by the company is very abundant, and the net operating cash flow is a relatively large positive number. For example, in the past five years, Apple has roughly between 60-80 billion US dollars, and Coca-Cola has roughly between 8-11 billion US dollars.
2. All have a lot of cash reserves:
In 2018, Coca-Cola spent nearly 25% of its cash reserves and purchased Costa with US$5.1 billion. In addition, Coca-Cola has maintained a relatively high cash reserve for many years. After consumer products companies reach a certain market share, they will hit a balance point (also called the ceiling), and then large-scale expansion of production lines and mergers and acquisitions are not particularly meaningful. If the company maintains a relatively stable scale, there will be cases where a large amount of cash cannot be spent. In short, financial indicators such as high-growth revenues and generous dividends are no longer common to consumer goods companies. It is not difficult to find that Apple is a technology company on the surface, but in essence, it has demonstrated the attributes of a consumer products company.
3. Apple's fall from the altar is bound to be an innovation that crosses Apple but completely subverts
Apple will eventually fall into the altar, so what is the next product? In fact, what inspired me was the Huawei App Store. I found out: Huawei App Store can temporarily use its functions without downloading software.
Then can we rely on the application store and 5G's extremely fast network to form a "cloud memory", that is: download software inside the mobile phone, rely on the application store, call all the apps we want to use, and then improve the overall mobile phone operating speed, the mobile phone as The user side can be weakened. All apps exist temporarily in the app store on the mobile phone, and they can be deleted as they are used, and the phone is cleaned. Especially in the era of the Internet of Everything and the smart home, this idea is simple, mobile phone control, the simpler the better. Finally, even if you can make a breakthrough, can you really have a showdown on all Apple products? As far as the tablet is concerned, I have never heard of a tablet that is comparable to Apple and is really invincible. The latest Apple tablet needs radar, and future productivity is even more outstanding. It is said that without Apple, there will be no innovation, but always follow behind Apple.
In other words, Apple itself is an altar, launching each product one after another, and what is standing on the altar of the apple is ecology. Let's stop staring at the phone, and don't think about pulling Apple off the altar. Instead, we should smash the altar and start anew. Because the altars in this field are already built by Apple.