tag:blogger.com,1999:blog-6387017872090573231.post22021623656224948..comments2023-08-29T03:27:07.278-07:00Comments on The Directive: Note to Apple: Pssst…. This is what Commoditization Looks LikeKat Shoahttp://www.blogger.com/profile/06131287502958034301noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-6387017872090573231.post-29250838939068585382009-07-25T11:29:58.770-07:002009-07-25T11:29:58.770-07:00Interesting thought exercise Kat.
Consider the au...Interesting thought exercise Kat.<br /><br />Consider the automobile. Expensive. So lets make only minor "cosmetic" changes to the trim one year, or for the first few years, and maybe only "retool" every five or six years.<br /><br />Better yet, lets take the Pontiac Solstice and offer a 80% clone called the Saturn Sky. Consumers will love that! Because it will allow us to Jeff SKI Kinseyhttps://www.blogger.com/profile/16169939403296365896noreply@blogger.comtag:blogger.com,1999:blog-6387017872090573231.post-61008279158154792712009-06-12T14:22:48.222-07:002009-06-12T14:22:48.222-07:00Jose, thanks for your input and sharing the number...Jose, thanks for your input and sharing the numbers. I needed to point out that once products become commoditized (as in the auto inudstry in the early 20th century), branding comes into play to reflect the "image" factor. Some products lend themselves better to branding than others (auto vs. printers, for example) and it will be interesting to see if the phone/PDA market will Kat Shoahttp://www.katshoa.comnoreply@blogger.comtag:blogger.com,1999:blog-6387017872090573231.post-178878158659029882009-06-12T08:52:49.187-07:002009-06-12T08:52:49.187-07:00You show two excellent examples of the experience ...You show two excellent examples of the experience curve effect at work, an empirical observation that costs over a long period tend to drop on a (relatively predictable) power curve fit. Most silicon-dominated products show a fit along a 70% curve, which means that costs in real dollars drop 30% for every doubling of cumulative volume produced. Apple introduced the smart phone when the industryJose Tormohttp://www.candlestickgroup.comnoreply@blogger.com