The obvious durable competitive advantage of Apple is the quality of Apple's hardware.
The Mac, iPhone and iPad all have excellent battery lives, the hardware is very well integrated with the software which provides for superior performance.
All this is due to the vertical integration of the design of Apple products hardware and software.
Yes, Apple products's hardware is manufactured outside the US in various countries, predominantly in China and Taiwan and is later assembled in China. However, the most important part of the production - the engineering design is done by the best design, manufacturing and software engineers in the world in California.
When the hardware and software of Apple's products is combined with the Apple's App Store offering of software applications, this makes for a powerful package of value adding in both hardware and services, which even when relatively dearly priced sill leaves a lot of consumer surplus for people in 2 years or more of usage.
Apple's current market capitalisation is 2.35 trillion USD on the Nasdaq bourse.
In my opinion, Apple's intrinsic worth is 1.0 trillion USD.
In short, a huge financial crisis is coming and Apple is producing luxury, discretionary goods, which are not essential to consumers and in hard times people tend to abstain from buying Macs, iPhones, iPads.
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