1) BMW is a much smaller company, 15x smaller than Apple. Apple's valuation is partly based on them pocketing _most_ of the smartphone profits globally. There is no expectation like that towards BMW. Remember, stock market is a game about expectations.
2) Cars don't seem to be a winner-takes-it-all market. IT services are not always like that either, but closer. It doesn't make your life harder if your friend is using a VW and you're driving a Toyota; but it does make a difference if your friend is on iMessage and you're on Android. So there's a market force towards oligopoly.
1) so if size is an argument: does google need to have a new product every 5 yrs? I don’t think google has innovated outside its main product “search” (like a new category with a major source of revenue on the size of search). They’re doing just fine
2) that’s actually a strong argument pro Apple and not against them (that’s like saying: no one will ever use another search engine than google and because of that they’re growing bigger and bigger)
1) BMW is a much smaller company, 15x smaller than Apple. Apple's valuation is partly based on them pocketing _most_ of the smartphone profits globally. There is no expectation like that towards BMW. Remember, stock market is a game about expectations.
2) Cars don't seem to be a winner-takes-it-all market. IT services are not always like that either, but closer. It doesn't make your life harder if your friend is using a VW and you're driving a Toyota; but it does make a difference if your friend is on iMessage and you're on Android. So there's a market force towards oligopoly.