I have no opinion regarding this debate, but I'm unclear on this point. Doesn't that article talk about only a recent decline due to factors like the move to EVs and tariffs? Wasn't Porsche using the same business model before and doing well? So if this conversation was taking place a few years ago when Porsche was doing well, would Beanoir's comparison be a valid point?Are you seriously using a company whose operating profits are down by 99% as an example? 😂
Porsche boss admits ‘our business model no longer works’
Porsche is preparing to further reduce its headcount as costs mount and profits drop, and CEO Oliver Blume has warnedtorquecafe.com
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iPhone 17 iPhone Air a Flop, 17 Pro a Massive Hit
- Thread starter blairh
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17 Pro is the best so far. But do you know what is an actual hit? An iPhone 17, regular model, very underrated phone. It costs similarly to original iPhones yet packs a punch: 2 cameras and multiple virtual lenses, fast processor (smokes all the competitors and especially puts Pixel 10 to hall of shame), actually GOOD color options (hello space gray!!), magsafe, 120hz display with PWM control, doesn't have any of the weird features of Pro models like a huge "plateau" with vapor chamber and no stupid LIDAR sensor that often makes it impossible to focus on smth. A real bang for a buck, and by choosing it you still got enough money to buy an iPad Air as a companion device to scroll webpages easier for your eyes.
iPhone Air is more like an experiment (but who asked for it?). Same will happen to iPhone Fold or whatever name they choose for it, it will be a very niche/geek device not meant for 95% of consumers who just want something that slides into their pocket, scrolls Instagram, makes calls and works with AI chatbot assistants
iPhone Air is more like an experiment (but who asked for it?). Same will happen to iPhone Fold or whatever name they choose for it, it will be a very niche/geek device not meant for 95% of consumers who just want something that slides into their pocket, scrolls Instagram, makes calls and works with AI chatbot assistants
No, Porsche is literally a case study used in B-schools right now to illustrate failure and fixed cost traps.
Beanoir's reference to Porsche is an example of people with zero understanding of business but think low volumes work. It did not work for Porsche, why would it work for Apple?
Porsche had huge warning signs back in 2022-2023. Their "exclusivity-first" production strategy which deliberately constrains volume contributed greatly to the company's overall financial problems today. They have huge fixed costs and in automotive, making a car like GT3 Touring with less than 1,000 units is a big mistake. Porsche spent a certain amount for dedicated engineering, testing, tooling, and marketing to make so few units. The GT3 Touring pissed off dealers too because they too have fixed costs to cover.
In short, Porsche was spending heavily on electrification R&D and battery manufacturing. At the same time, they used "exclusivity-first" strategy. This is like carrying two huge burdens at once.
Apple is spending a huge amount on AI infrastructure, hardware, chips, and new product categories. iPhone Air is low volume just like GT3 Touring.
How can you be "sure"?
Data right now shows it's as low if not lower than iPhone mini.
Developing the Air costs probably $1B+. All for what? To get the same volumes as iPhone mini? Not to mention opportunity cost. It occupies a slot that could be used for another better performing model, in the iPhone lineup or elsewhere.