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Apple's innovative design is a short-term competitive advantage. If they did not have anything else going for them, android competitors would tear them apart. The thing with apple is that they continue to innovate (and market) successfully time and time again. That's the secret that other's can't seem to figure out.

One of Apple's strengths I think is that they have the resources of a large company and yet do a decent job at moving & pivoting like a small company. They're at a point lately where they seem to release some major new cool thing each year that makes consumers drool and their competitors tremble or at least scramble to catchup.

The flipside is that if they feel too much pressure to keep moving fast they might move too fast and then the quality drops and they stumble (as possibly evidenced by the recent iPhone 4 signal issue.)

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