Apple, Apple News

Does Apple Needs To Create A New Product To Stay On Top?

There is no doubt that Apple is on top of the world right now.  They have the the best selling smartphone the best selling tablet and are currently worth over $500 billion dollars which makes them the most valuable company on the planet.  But what is even more staggering is that just two years ago Apple was worth only $200 billion!  That’s absolutely bonkers when you think about it in those terms.  A $300 billion dollar gain in two years is unheard of.

The New York Times recently published a very interesting piece about Apple and its unprecedented growth over the past 5 years.  The article goes on to explain further that Apple could be on a collision course with the “Law Of Large Numbers.”

Also known as the golden theorem, with a proof attributed to the 17th-century Swiss mathematician Jacob Bernoulli, the law states that a variable will revert to a mean over a large sample of results. In the case of the largest companies, it suggests that high earnings growth and a rapid rise in share price will slow as those companies grow ever larger.

If Apple’s share price grew even 20 percent a year for the next decade, which is far below its current blistering pace, its $500 billion market capitalization would be more than $3 trillion by 2022. That is bigger than the 2011 gross domestic product of France or Brazil.

Put another way, to increase its revenue by 20 percent, Apple has to generate additional sales of more than $9 billion in its next fourth quarter. A company with only $1 billion in sales has to come up with just another $200 million.

Microsoft and Cisco are two companies that are great examples of the “Law Of Large Numbers.”  Both were at one point in time the largest company in the world and now are down hundreds of billions of dollars from the height of their power.

The reason for this really isn’t that hard to understand.  Once a company has reached a certain level of dominance in their marketplace they simply cannot continue to grow unless they enter a new market.

So that brings us to a question… How has Apple grown at such a rapid pace in the last few years?  The answer….  By following the “Law Of Large Numbers”  and developing new products (iPhone, iPad, iPod Touch) so that they can enter new marketplaces and continue to expand.  So it seems only inevitable that Apple would have a new product in the works to continue their global dominance.  And personally I can’t wait to see what they come up with.

If Apple does have a new product in the works what do you think it could be and why?

Source: New York Times via MacRumors

Share this Story

Related Posts


  1. GVK BIO Recent Updates

    January 19, 2018 at 6:56 am

    340205 938250You are the very best, It is posts like this that maintain me coming back and checking this website regularly, thanks for the information! 588036


  2. sponsored story ads

    February 3, 2018 at 7:39 am

    429435 60725Some times its a discomfort inside the ass to read what blog owners wrote but this website is very user friendly ! . 704910


  3. pay per click management

    February 4, 2018 at 8:55 am

    865264 56996I enjoy, result in I found exactly what I was taking a look for. 14466


  4. warehouse for rent

    February 5, 2018 at 1:07 am

    356000 596463Hi. Cool post. Theres an concern together with your web site in firefox, and you might want to check this The browser is the market chief and a excellent section of men and women will pass more than your fantastic writing because of this dilemma. 869503


  5. Metabolic kinetic studies

    February 5, 2018 at 7:35 am

    664597 269402Some truly marvelous function on behalf with the owner of this web web site , dead excellent articles . 686626


  6. mr checkout distributors

    February 14, 2018 at 2:15 pm

    686610 290999Not long noticed concerning your internet website and are still already reading along. I assumed ill leave my initial comment. i do not verify what saying except that Ive enjoyed reading. Nice blog. ill be bookmarking maintain visiting this internet website actually normally. 990835


  7. !2ke

    February 26, 2018 at 7:12 pm

    335903 679822Woh I like your posts , saved to fav! . 814308


  8. suporte informático

    March 7, 2018 at 7:28 am

    806568 454998This sounds in a way inflammatory pending mecant wait for thisthank you! 136052


  9. 网站111

    March 16, 2018 at 7:32 pm

    12684 451818Some genuinely nice stuff on this web site , I it. 146204


Leave a Reply

Your email address will not be published. Required fields are marked *

Join Our Mailing List

Email Format

Free iTunes Gift Cards!

Find us on Google Plus