Apple Business Model Mini Case Assignment
QUESTIONS:
1. In your own words, explain why the author refers to Apple's business model as a roach motel.
The author refers to Apple’s business model as a roach motel partly because of the old Raid commercial where the narrator says, “roaches check in, but they can’t check out.” When a customer begins using Apple products, they are set up in a web of content and applications. Every time they download an app, they are committing to the same type of system, or ecosystem, if you will. That makes it very difficult for a customer to switch to something different. When a customer gets used to a certain way of doing things, they are less likely to switch to another way. People generally don’t like change and once they get used to something, they like to stay with it.

2. In 25 words or less, and in your own words, summarize the author's prediction about Apple's future success. Apple’s margins may start to fall sharply but that doesn’t mean they won’t be successful. Bet on Microsoft to put their hat into the ring.

3. Based on the factors discussed in the article (e.g., the rise of HTML5), are future prospects brighter for Apple or Google? Defend your answer. Prospects are brighter for Google, simply because there is more areas in which to grow. The rise of HTML5 makes it less expensive for Google to operate the same principles and that is where they will take advantage. Consumers are looking for lower prices and better deals. Apple has loyal customers, called, “Apple-ites,” however; other customers are looking for lower pricing; especially if the device can do virtually the same things as an Apple product. Also, Google is acquiring a manufacturing arm that has yet to grow into many markets such as TV and PC. Google can now force other OEM's to better the build quality of its devices and most importantly do whatever it