Nexus 7, Kindle Fire, Fire HD, Nexus 10

Well. We’ve arrived back at 1990.

Apple creates a market that did not exist before. No one is willing to compete with Apple in principles and philosophy, so a bunch of companies race to the bottom with cheap prices and irresponsible margins.

But it doesn’t work.

It took a two decades for the race to bottom to fail in the PC market (only Apple makes money). It took two years for the race to the bottom to fail in the smart phone market (only Apple and Samsung make money). How long do companies think they will be able to continue this race in the tablet market?

The part I don’t fully understand is this: Why would you only want a tiny, fleeting piece of a giant pie? Why is it that no one copies Apple’s philosophy and business strategies when those things are the real reason for Apple’s staggering success? I guess a tiny, fleeting piece is still more than no piece.

But there is more. Not only is there no money in the race to the bottom, but worse, the race to the bottom sullies the brand.

Once you have lost your reputation, it is very hard to regain it. – Charles Dickens

The sting of poor quality lingers long after the joy of low cost. – unknown


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