Apple and Amazon will miss AI like Intel missed mobile
6 days ago
- #AI
- #Innovation
- #Tech Strategy
- Apple and Amazon risk missing the AI revolution due to their entrenched company cultures and strategies.
- Both companies view AI as a commodity rather than a paradigm shift, leading to underinvestment and misalignment.
- Amazon's AWS strategy focuses on commoditized infrastructure, but AI prioritizes quality/performance over price.
- Apple's heavy reliance on the iPhone (75% of revenue) makes it vulnerable to AI-driven shifts in user interfaces.
- AI's rapid evolution challenges Apple's slow-moving, hardware-centric approach, potentially making hardware a commodity.
- Amazon and Apple may struggle to catch up due to the innovator's dilemma and fast-moving AI advancements.
- Changing the game (e.g., creating new standards) could help, but both are already behind Nvidia and OpenAI.
- Company culture, once a strength, can become a liability when market paradigms shift.
- Founders are often better positioned than managers to make bold, disruptive decisions.
- Intel's delayed collapse after missing mobile suggests Apple and Amazon may face similar fates, but faster due to AI's pace.