The same thing has happened before, both at Apple, and at NeXT, which was the company Jobs started that resulted in the NeXT OS becoming OSX.<p>Apple: pre-Macintosh days: has the Apple IIe (IIc also, all with 8 bit 1Mhz CPUs) etc. minting money, but Apple has no clear upgrade path to more powerful computers. Note that the basic design of the Apple II dates to 1977...<p>They try the Apple III (with a 2Mhz CPU!) as a method of market segmentation but it doesn't take off as well as they hoped. They continue milking the 8-bit, 1Mhz Apple IIe market until 1993 when it is finally discontinued. (They sold a plug in card for certain Macs that allowed Apple II era software to run under a combined software and hardware emulation layer).<p>So after letting the IIe linger (1977-1984, 6 or 7 years of the same basic design) they come out with the Macintosh - completely incompatible but really a new class of machine.<p>The 68K-based Macs go through a similar period of sliding into a moribund, twilight existence - being overpriced in comparison to "Wintel", and not fixing dumb bugs like having the mouse button interrupt and stop all activity on the system, for instance. An attempt at a new OS (Copland or whatever they called it) fails miserably.<p>The NeXT systems that Jobs designed, were often BETTER than the equivalent SPARC systems, and were proce-competitive. Why didn't NeXT sell tons of desktop workstations in competition with Sun?<p>Well, the US Federal Government requires all systems (or at least UNIX based systems) they buy to be able to provide POSIX as a layer, to ensure interoperability. This is why Windows NT had a (probably rarely used) POSIX subsystem, to make sure they could check that checkbox on GSA procurement forms.<p>Despite it being easily able to be added to NeXT's OS, for some reason, Jobs never made sure it got added. So no GSA contracts for NeXT... and at that time, the US Federal Govt was one of the largest buyers of Unix-based systems in the world. The only exception is the NSA and maybe CIA, who don't have to answer to GSA procurement, and love using Interface Builder and other tools to rapidly create their custom apps.<p>See any patterns here? Apple is wholly unable as part of its DNA, to consistently create stable growth. They blaze a trail, leave others in the dust, then get lazy or lack inspiration, and others catch up to them.<p>Their model is the "blockbuster" model and when something isn't a blockbuster (Newton PDAs, rackmounted XServes) they drop it and forget about it. iPhone and iPad are basically the Star Wars franchise in terms of longevity and profitability...