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The amount of future losses and when, if ever, we will achieve profitability are uncertain. Ourcurrent products have not generated significant commercial revenue for our Company and there can be no guarantee that we can generatesufficient revenues from the commercial sale of our products in the near future to fund our ongoing capital needs. We have a limited operatinghistory and our business and prospects must be considered in light of the risks and uncertainties to which early stage companiesare exposed. We cannot provide assurances that our business strategy will be successful or that we will successfully address thoserisks and the risks described herein. Most important, if we are unable to secure future capital, we may be unable to continueour operations. We may incur losses on a quarterly or annual basis for a number of reasons, some of which may be outside our control.
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The authors attribute this success to Apples intelligent view of what a mobile phone is. While other phone manufacturers saw mobile phones as just products with a certain amount of features that may or may not be innovative, Apple considered the iPhone to be a platform and focused on building a community around it instead. The iPhone was used by Apple to create a two sided platform, bringing producers and consumers together in one place. Enabling Apple to take advantage of network effects. By doing so platform business models can be a destructive force to traditional, or as the authors of this paper prefer to call them, pipeline business models. When we consider disruptive platform businesses we tend to quickly think about disruptive startups such as Airbnb and Uber. However, the Apple iPhone was just as disruptive to the phone manufacturing industry as Airbnb and Uber were to their respective industries. The authors identify three key shifts a successful platform has to make from a traditional business model. First platforms need to identify that its most valuable resources are likely not tangible assets, but intangible assets. The network, consisting of the community of producers and consumers and all the assets they bring to the table, is the platforms most valuable asset. Second, this means that facilitating interactions between the consumers and producers should be your number one priority.
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