Titans or Dinosaurs? The Fight for Relevance
In the 1980s, the computer industry was dominated by titans such as Digital Equipment Corporation (DEC), IBM, Burroughs, HP, Wang, Fujitsu, and Prime.
These companies led the way in innovation and market dominance, shaping the early days of computing. Yet, their trajectories also serve as cautionary tales, as their market leadership was eventually overtaken by smaller, more agile competitors and shifting industry paradigms. In 1980, the largest company in the S&P 500 was IBM.
The personal computer (PC) revolution began modestly in the mid-1970s, catering to hobbyists with devices like the Altair and IMSAI. User-friendly systems by Atari, Commodore, Apple, and especially IBM propelled PCs into the mainstream, capturing both consumer and corporate markets. The rise of IBM PCs symbolized a turning point where personal computing began to rival and then dominate the market.
Death of industry giants
The old guard of the computing world struggled to adapt to these transformations. DEC, once the runaway leader of the minicomputer market—a market that disappeared—faded into obscurity through acquisitions, along with Amdahl, Burroughs, Control Data, and Wang. IBM, once synonymous with enterprise computing, redefined itself as a consulting powerhouse. HP pivoted to focus on PCs and printers, spinning off its lab instruments business.
Trillion Dollar Companies
Meanwhile, a new generation of technology companies emerged. Microsoft established dominance as a pure software company, providing a de facto standard platform for a large segment of the PC industry, while Apple integrated hardware and software to deliver a seamless user experience. Companies like Dell thrived by revolutionizing supply chains, while Oracle and Adobe leveraged the burgeoning software market.
Today, seven of the world’s eight trillion-dollar companies are technology firms—Apple, Microsoft, NVIDIA, Alphabet, Amazon, Meta, and Tesla—with Saudi Aramco as the lone outlier.
None of these trillion-dollar tech companies are even a century old. Their average age is 30 years, ranging from 20 (Meta) to under 50 years (Microsoft and Apple).
This underscores the inability of the old guard to maintain dominance in the industry, as new players emerged with innovative approaches and redefined the market.
Who is Redefining the Automotive Industry?
Today’s automotive industry today echoes many of the dynamics seen in the computer industry decades ago. Established automakers are losing market share to newcomers like Tesla and BYD, which offer best-in-class software-driven services, frequent feature rollouts, and creating highly personalized, connected driving experiences.
Tesla is now worth more than all other automakers combined. BYD has become a dominant force in China’s NEV market, a country that has 76% of the global electric vehicle market share. These companies have become leaders not just
As electric vehicles (EVs) gain traction, traditional automakers risk becoming niche players, much like IBM’s pivot to consulting or HP’s focus on undifferentiated PCs and printers.
The Takeaway: Adapt or Fade
The story of the computer industry reveals that dominance is fleeting without adaptability. It took less than 20 years for hobbyist PCs to crush an entrenched industry and upend decades of established leadership.
Automakers now face a similar challenge, not only as the EV revolution accelerates but also as software takes a dominant position and customers increasingly demand more innovation and a better user experience.
The winners in this transformation won’t be those with the longest histories but those who embrace change and redefine what it means to lead. In the race for the future of mobility, the question looms: who will lead boldly, and who will be left behind in history?
About Sanboca Insights
At Sanboca Insights, we specialize in tackling challenges unique to the automotive industry, enhancing the journey from concept to deployment. We partner with leading automakers across the Americas, Europe, and Asia, where we deliver strategic guidance to refine technology roadmaps, accelerate development, forge partnerships, and unveil new opportunities.
Are you ready to lead the charge in redefining the automotive user experience? Contact us today to start your journey toward a more integrated and data-driven future.