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From The Hustle
|On July 1, one of the world’s top Apple analysts, Neil Cybart, wrote an article titled “Apple is pulling away from the competition.”
Since then, Apple has gained $500B+ in market cap and — on the road to becoming the world’s first $2T company — smoked its Big Tech frenemies.
Apple has built its advantage for years
Each of its new products is designed to handle tasks once managed by sibling devices — and in “an increasingly personal way,” Cybart told us yesterday.
Computing tasks are moving from the Mac to the iPhone to the Apple Watch — while all of Apple’s products work seamlessly together (except the charger cables).
In comparison, Apple’s top tech competitors are all over the place:
iPhone sales are slowing but other products are picking up the slack
Apple has built a sticky ecosystem around its flagship product with services and non-iPhone revenues accelerating in recent quarters.
Cybart estimates that of Apple customers, 50% own only one product (iPhone). Once these people go deeper into the ecosystem, watch out.
Expect millions of users to add additional items like the AirPods, Watch, subscription or — as Cybart predicts — a face wearable in the years to come.
The biggest risk to Apple?
However, Cybart tells us the biggest risk to the Cupertino giant is a lack of focus.
Customers are embracing Apple’s current strategy, he says — but “if you see Apple stretch itself into areas where it doesn’t have the same user experience, that could start the gradual unwind of its ecosystem gains.”