Category: Business and Finance

Not exactly a doom-and-gloom piece for Apple, but it does project a time when the gap between the iPod and other digital music players has narrowed. The only idea that really jumps out in this piece as wrong is the idea that Apple will only be able to compete on price once the gap has narrowed sufficiently.

If there’s anything that Apple’s history proves, it’s that they rarely compete on price. Even with the new mini, it’s low cost is only relative to other Apple products. That said, I’m still planning to buy one. Yes, I’m one of those PC users who got caught by the iPod “halo effect” that’s been written about elsewhere in the press.

This article from McKinsey Quarterly takes a look into why some companies continue to manufacture in California–one of the world’s most expensive places to do manufacturing.

It doesn’t appeal to “patriotism” (like a recently failed presidential candidate), but to the bottom line. The authors make a convincing case that for industries where speed to the customer is important, companies with a geographically compact supply chain have a big advantage over producers with low-wage overseas labor.