It’s Scary How Fast Apple Could Lose Its Dominance

Apple has radically reshaped existing technologies and created entirely new ones. But here’s how it could fall off its throne.

Jul 20, 2014 at 11:00AM

Apple (NASDAQ:AAPL) – through innovation and disruption -- has been one of the greatest performing stocks over the last several years. But while we often think of Apple as having a giant protective moat around its business, one expert says it could easily be outmaneuvered and lose its dominance.

What went right
Apple was one of the great innovators in my lifetime. Its products not only radically reshaped existing technologies (think cell phones), they also created entirely new ones (tablets). The results of this innovative prowess brought longtime Apple shareholders returns they never dreamed of.

AAPL Chart

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What could go wrong
Of course, what matters to us now is Apple's performance over the next several years. Paul Nunes is executive director of research at Accenture's Institute for High Performance, and co-author of Big Bang Disruption: Strategy in the Age of Devastating Innovation. He makes it clear that any company – no matter how entrenched – can be disrupted with surprising speed.

I spoke with Nunes at the 2014 International CES in Las Vegas. While Apple is protected to some extent by the high switching costs provided by its ecosystem, ultimately the products drive sales and the company must continue its strong track record of innovation.

His book provides the details of how new competitors these days can provide better products at lower costs in a fraction of the time it used to take. As he explains in the video, this new age of innovation, combined with social media's ability to relay information quickly, is what Apple must watch out for.

Leaked: Apple's next smart device (warning, it may shock you)
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!

Rex Moore has no position in any stocks mentioned. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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