‘Pokemon Go’ could generate billions for Apple… or it’s the Ecosystem dummy

“I think the point is that while Nintendo has gone up 20 billion and they do have IP risks, Apple does not,” Martin said on CNBC’s “Halftime Report.” “It is hedged because the next genius that makes a hit game, Apple shares on that one too. So while this one may be transitory, Apple has an option on all future hit games over the iOS platform.”

Martin attributes Apple’s success to its ecosystem business structure and other revenue generators such as the App Store.

“Apple has higher profit margins than the Walt Disney Company and has higher returns on capital than Facebook and, therefore, the notion that it could be valued as a hardware company just because it makes phones, we think is flawed,” Martin said. “Those margins are only achievable because it does have these ecosystem benefits like ‘Pokemon Go’ to route its ecosystem to a much higher margin.”

Source: ‘Pokemon Go’ could generate billions for Apple: Needham’s Laura Martin

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