Happy Birthday iPhone!
Give or take a day, Apple's iPhone turns 5 today! I think it is safe to say that this device has had a revolutionary impact on global communications and interaction. The famous economist Joseph Schumpeter coined the term "creative destruction" and there is no better company or device to serve as a role model.
Henry Blodget, who I follow closely on my tweet deck (click here to view his twitter account), wrote a piece for Business Insider today (click here to read) which highlights this creative destruction:
- iPhone has "destroyed" at least 3 big companies - Palm, RIM, Nokia
- iPhone business is bigger than Microsoft and generates $30BN of PROFIT per year
- iPhone has created an entirely new industry and ecosystem that has created hundreds of thousands of jobs and careers
While the iPhone has crushed many firms, it has also spawned new and aggressive competitors like Samsung and Google with different approaches. The new Google tablet being announced today along with Microsoft's "Surface", add to the competitive landscape - all thanks to Apple's dominant position.
There is no question that while America can be viewed as often very dysfunctional politically, the entrepreneurial and capitalist underbelly of its society gives it a huge competitive advantage globally.
Apple, Google, Facebook... Stay bullish on U.S. assets - equities and the dollar especially - relative to the rest of the world.