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And there is ample precedent for Apple expanding existing product lines.
Existing product lines are scrutinised for continuous improvements (use of water, energy, materials), and new technologies added to the portfolio (LED lamps, wind power).
Big packaged-food companies are timid innovators, fiddling with flavour or cautiously extending their existing product lines, says Thilo Wrede of Jefferies, an investment bank.
You're suggesting that we invest millions of dollars in a market that may or may not exist but that is certainly smaller than our existing market, to develop a product that customers may or may not want, using a business model that will almost certainly give us lower margins than our existing product lines.
Rather than breaking new ground, the acquisitions have filled out existing product lines.
One obvious answer is to move downmarket in its existing product lines.
Similar(43)
The company has also reversed its position on low-carbohydrate foods, which some company executives derided while promoting Slim-Fast's existing product line.
Garmin is one of many companies that have adapted an existing product line, in this case a hand-held G.P.S. unit, with the hope of tapping into the pet market, said Michael Dillon, a pet industry consultant in Berkeley, Calif.
But the more mundane explanation is that Apple, like many of the world's big companies today, is generating more cash from its existing product line than it can usefully plough back into new projects.And that's a problem.
Another fertile growth avenue to explore for an existing product line is that of adjacent jobs to be done.
It will produce and sell cars using GM's existing network and widen GM's existing product line in the country.
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