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'We Are Now in a Cult-Based Economy': Tech Pro
13 Apr 2012 EDT - CNBC.com
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Struggling tech companies have failed to acquire "cult" status in an oversaturated market and the successes of Google, Facebook and Apple in particular are largely due to their massive followings in a "cult-based economy", Keith Woolcock, Partner at 5th Column Ideas, told CNBC.

“Apple has one of the smallest R & D budgets; it spends two percent on R & D and has the smallest portfolio of products, so it’s a little bit like what Voltaire once said, God is on the side of the sharpest shots not the biggest armies, and you know you’re competing with a cult," Woolcock told Squawk Box Europe.

“We are now in a cult-based economy, Google is a cult, Facebook is a cult, Apple is a cult, cults are what you need to see through too much choice,” Woolcock said.

In a week when Sony’s new CEO Kazua Hirai doubled the Japanese electronics firm’s annual loss forecast to a record $6.4 billion, Woolcock said things were likely to get worse for Sony if Apple enters the TV market.

He explained that Apple had not become "uncool" despite having a very narrow product range and devices that evolved at a slow rate.

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