Apple is misplaying the hand Steve Jobs left them, making themselves vulnerable to competition for the first time since iPod.
The company has always been at least one step ahead of the competition in hardware advancements and software experience.
It used to be that to switch to Android or Windows, you’d have to give up functionality, user experience and access to the latest and greatest apps. The switching cost to move to a competitor was very high.
Apple used this position to gain the upper-hand in partnerships — deal terms were often in their favor. It also gave them leverage on the consumer side.
We were more willing to tolerate buying new adapters for their Apple devices because the upside was worth it. This year, they…