Cannibalizing their most popular product to make pocket change on licensing fees does not even pass a basic smell test. If this rumor is true, there’s undoubtedly a plausible business reason. To put some share of your $200Bn/yr cash cow at risk? Plus risking the downstream halo purchases of other highly-profitable products in the ecosystem, including first-party cables? Half a billion in revenue over a holiday quarter. Half a billion licensed third party USB-C cables per year. And hell, most people I know still use USB-A to Lightning cables to charge their phones at excruciatingly slow speeds. That seems like an absurdly high number to me given the fact that most people will buy first-party cables. What share of that is MFi cables in general? And what share of that is hypothetical MFi USB-C cables? At $4 a pop, you’re talking 125 million licensed third-party USB-C cables. Okay, so let’s agree for the sake of argument that cables make up $1bn of Apple revenue.
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