An article with this title appears on the Seeking Alpha website. The site appears to be aimed at investors. In the first paragraph the article says, “The nearly 25% of recognized revenue that flowed to the net income line in FY 2011 is what I call “Apple’s 25% solution.” It’s Apple’s formula for consistent earnings growth and management’s solution to the complex questions that surround strategic product decisions.”
I have long stated that Apple uses content, (software, music, books, apps, etc.) to give consumers a reason to buy their products while Amazon does the reverse and provides hardware for the purpose of providing consumers a method for purchasing its content. (Books, music, video and now apps.)
This article points out that Apple’s strategy is exactly as what I have described. However, it is written much better than I can reproduce here. I highly recommend it to help understand why Apple and those of us who consume its products operate they way they do.
Read it here: http://seekingalpha.com/article/305849-apple-s-25-solution?source=feed
