Will Apple Inc. (AAPL) Go the Way of BlackBerry Ltd (BBRY)?

Moreover, CNBC found that, among households who owned an Apple device, the average household had at least three devices. This data supports the assertion that users of one Apple device follow up on incentives to buy additional Apple devices.

Even so, Apple faces fierce competition from the likes of Samsung. The short product cycle and ubiquity of smartphones, tablets, and similar devices will inevitably lead to lower returns on capital over time.

However, Apple’s robust product ecosystem, enthusiastic customer base, and unique storefront sales model may be enough to keep earning outsized profits until the next massively-innovative consumer products company comes along — which may not be for a decade or more.

Bottom line

Apple, like all other technology companies, will eventually earn lower returns on capital than it does today. The sector is simply too disruptive to allow one company to remain on top forever.

However, in all likelihood, Apple’s fall from grace will not happen any time soon. Apple’s incompatibility with non-Apple devices — a feature championed by the late Steve Jobs — gives it switching costs that rival those of Microsoft Corporation (NASDAQ:MSFT) in its heyday. As a result, investors may be well-rewarded for buying the company at less than 10 times earnings.

The article Will Apple Go the Way of BlackBerry? originally appeared on Fool.com and is written by Ted Cooper.

Ted Cooper has no position in any stocks mentioned. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple. Ted is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.