Analyst Ben Thompson takes a hard look at Apple’s organizational structure to explain why the company excels at hardware but performs poorly with services. Using DuPont’s shaky pivot from gunpowder to paint, Thompson illustrates why it will take a major organizational shakeup for Apple to succeed in services. With its executives indicating that they believe services are important to the future of the company, Apple may have no other choice than to create a new division with a corporate structure better suited for online services, while separately maintaining the existing structure that has been so successful with hardware.
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