Apple is sitting on top of the world right now. It has the most popular handset and tablet on the market, it broke nearly every company sales record last quarter, and it’s currently the most valuable corporation in the world.

The company’s real accomplishment, however, is how quickly it has risen to the top. Less than two years ago Apple’s market cap was only $200 billion. And now it’s teetering around the $500 billion mark. But how long can it keep up this ridiculous pace?

The New York Times recently published an interesting report regarding Apple and its unprecedented growth and success over the last 5 years. The article explains that Apple could soon be going up against the law of large numbers:

“Also known as the golden theorem, with a proof attributed to the 17th-century Swiss mathematician Jacob Bernoulli, the law states that a variable will revert to a mean over a large sample of results. In the case of the largest companies, it suggests that high earnings growth and a rapid rise in share price will slow as those companies grow ever larger.”

Several companies have fallen victim to the law, including Cisco and Microsoft — both of which were rated the most valuable companies in the world at some point, and are now down hundreds of billions of dollars from their peaks.

The reason for this? It’s simple. Once companies have maxed out their opportunities in their competing markets, they can’t continue to grow unless they enter new ones. Sure, Apple’s smartphone and tablet market penetration is minuscule compared to what Microsoft Windows was at its peak (close to 90%). But what about in 5 years?

The point is that all of Apple’s recent success has been a direct result of it introducing new products: the iPod, the iPhone, and more recently the iPad. For the company to continue growing at its current rate, it would either have to figure out some way to substantially increase the sales of those devices, and maintain that, or it would have to unveil an entirely new product.

Rumors seem to point to the latter scenario, as there has been a lot of gossip over the past several months indicating that Apple would soon unveil its own TV set. Pundits and analysts alike seem to think that the Cupertino company is looking to enter the TV market sometime in the near future. But as usual, we’ll believe it when we see it.

Do you think Apple needs to create an entirely new product? If so, what would you like to see?

[MacRumors]

  • sn0wbaLL

    A gaming Console

    • My exact thought! If they do this i believe they will dominate the video game market rapidly

    • I doubt it very much. Game consoles are a thing of the past. Even Xbox offers films and tv. What’s more likely is apple will release a tv or apple tv update with strong gaming capabilities.

      • sn0wbaLL

        can you imagine the price, the size and not to mention the huge fan to keep it from over heating

      • Apple products tend not to use fans

    • Anonymous

      Apple already has a gaming console. Its called GameCenter with thousands of games available.

      • sn0wbaLL

        so you’re comparing console games to games on an ios device? i own both and let me tell you that although the idevices are great, they are nothing compared to the graphics and the experience of console gaming

      • That’s true, for now.

    • No, just an Apple TV with the capability for apps and bluetooth controllers! Imagine playing Real Racing HD on your HDTV w/ a wireless controller. That’s my guess as to the next gen AppleTV. It will be a streaming box with support for Apps. Can’t wait! 🙂

  • Money is tight, oil prices are sky high, whatever it is it can wait.

  • Gregz0r

    Apple just needs to continue appealing to the 99% and leave the others to fight over the uber specs.

  • a halographic tv !!!!!!!!!!!!!!!!!!!!!!!

  • Rob

    Well, Samsung just came out with a Galaxy that has a projector built-in .

    Would love to see that in the next iphone !

  • Medical machinery?

  • iToilet? iFork? iFleshlight?

  • Anonymous

    Apple tv that everyone has been hearing about….iCar!

  • Of course they have to.
    If they think they will stay on top forever (like Nokia did)…well…one of these days they will have a big surprise…they can’t be that arrogant.

  • Igame, brand new console, designed to be used by everyone 🙂