Gavin Baker
+ Your AuthorsArchive @GavinSBaker Managing Partner & CIO, Atreides Management LP. Formerly Fidelity OTC Fund. No investment advice, views my own. gavin-baker.medium.com/ Apr. 09, 2021 1 min read

1) Compounding competitive advantage.

Because iPhone drove share for carriers in the early days via product/brand superiority, they could introduce iMessage without fear of losing subsidies. Android could not.

Now iMessage is an important lock in.

Yes, aware of BBM.

2) Services and wearables revenue equals much higher LTV even adjusting for Google's TAC reduction on Android.

So they can spend more on product and branding.

3) And all this feeds into higher trade in value, which makes iPhones ultimately cheaper to consumers despite the massive price premium for the iPhone, which again creates the ability to spend more on product and brand.

Super elegant model. Highly defensible.

4) But disruption is always right around the corner.

They are well positioned for AR, but need to execute.

And services are still broadly a weakness IMO despite financial success.

CAID would've been the ultimate test of internet platforms vs. the IOS platform.


You can follow @GavinSBaker.



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