Posted by: Jamen Koos
Apple, BMW, Business Model, Ferrari, Mac OS X, Microsoft, Snow Leopard, Windows, Windows 7
Are you familiar with Ferrari’s business model?
What about BMW’s?
If you’re not, here’s a quick juxtaposition of the two: Ferrari doesn’t make a lot of cars. BMW does. Both companies are very profitable. BMW addresses maybe 50-75% of car-buyers with models whose prices range from roughly $30k to $120k, Ferrari addresses more like 1-2% of car-buyers with models at prices ranging from ~$120k-~$1.5 million. If you searched for absolute numbers, you would find that there are far more dissatisfied BMW owners than Ferrari owners. “What!?” you say? Calm down. This is because there are far more people who actually own BMW’s than do Ferraris—remember, we’re talking absolute numbers here. If you went out and looked for dissatisfied BMW owners relative to how many BMW owners there are total, and then you did the same for Ferrari owners, we might safely guess that you’d find similar percentages—as I would assert that both companies make high-quality automobiles.
Apple has been making ‘Ferrari’s’ for a couple years; they recently decided to change their business model to attempt to start selling their ‘Ferraris’ at BMW-like volumes. Get it?