Apple’s business system leads the company to irrevocable death, says analyst

An expert Paul Hochman noted at a conference Forward with Ford 2011 that the closed ecosystem that brought billions of dollars to Apple would kill the company after all, reports CNET.

The analyst believes that Apple made a big mistake by having chosen a closed system because it would lead the company to the collapse.

The closed system practiced by the Cupertino means that all app stores (mobile and desktop for Macs) are absolutely controlled by Apple itself, all Apple devices run operating platforms developed by the company and Apple offers its own iTunes software to work with its OSes. Such a model is doomed to die, thinks Hochman.

“Apple’s in big trouble,” he said. “They’re sitting on piles of cash, but they are sitting on a closed system. In biology, in history, a closed system never survives.”

On the other hand, many people still believe that it is exactly its closed ecosystem that made Apple so successful and popular and allowed it to create bestsellers like iPhone and iPad.