Case 03 — Apple · Steve Jobs · 2005

Your most profitable product is about to be eaten. Do you build the thing that eats it?

The iPod is the most successful product in Apple's history and is generating a large share of company profit. Phones are starting to add music playback. You have an internal project that could become a phone with an iPod inside it — but if it works, it makes the iPod obsolete, and your own best business is the first casualty.

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