Economist Joseph Schumpeter coined the phrase “creative destruction” in 1942 to describe the less-than-tidy way free markets lead to progress: telephone replaced telegraph; cell phone replaced telephone; smartphone is replacing cellphone and so on. Something gets destroyed and something new and exciting is built on top of it.
Reading the piece by Nick Bilton in The Economic Times dated 10th September... he writes,
Perhaps no other recent product has been quite as much an agent of destruction and renewal as the iPhone, with its long list of features and access to a store of nearly a million apps that can handle thousands of functions.
The iPhone is the Ford Mustang of today.Ask 20-somethings if they would rather own a cool new car or a cool new smartphone. They’ll pick the latter. These devices offer a degree of freedom and social reach that previously only the automobile offered.
The apps store connected to the iPhone has allowed thousands of small businesses to thrive. And some like Rovio, the maker of Angry Birds game, have become large companies.
The new iPhone has got its due attention and soon there’ll be a scramble by it’s competitors such as Samsung, Huawei and ZTE to copy its latest features or better them.
That is the thing about this notion of creative destruction: you never quite know when you stop creating and get destroyed!