Synopsis:

Apple is known for its technological capabilities. Since the dawn of the 21st century, why has Apple, a U.S. company, been able to introduce more innovative products one after another to the world and so profitable than has Sony, a Japanese company? Apple developed various groundbreaking products such as iPod (2001), iPhone (2007), and iPad (2010).  However, it is still fresh in our memory that in the last quarter of the 20th century, it was Sony that had been instrumental in introducing many innovative products globally, including cassette players, Walkman, CD players, DVD players, Blu-ray discs, and PlayStation. Just like Apple today, Sony used to be known for its technological capabilities. Yet, U.S. patent statistics show that Sony has maintained its high technology stock over the years; but it has not been blessed with many globally successful products in the last 20 years. On the other hand, Apple’s technology stock was nowhere near Sony’s level when Apple introduced those groundbreaking products successively. However, Apple has significantly increased its R&D investment and increased its technology stock in the last several years to a level comparable to that of Sony. However, even Apple seems to be experiencing a kind of technology paralysis without successful products now, similar to the one experienced by Sony earlier. The conundrum is that there even appears to be a negative, rather than positive, link between investment in technology and market performance.