Why Apple’s future became hazy as ever

The Apple company is going through hard times: the demand for the new iPhone leaves much to be desired, and the stock price continues to fall. CNN journalists tried to figure out what’s wrong with the current policy of the company, and what you need to take to regain her leading position in the market.

The problem in heir jobs?

After the death of Steve jobs in 2011, analysts were convinced that the heir of Steve jobs, Tim cook can save Apple from the predicted decline. However, their expectations did not materialize. Cook was a great organizer, managed to create an affiliate network and increase sales of company’s products due to lucrative contracts with other corporations and create their own popular designs.

That all changed in 2018 when the new iPhone failed to make a splash in the mobile market, and the company’s shares began to decline markedly in value. However, diminishing supply and production of the iPhone.

Stagnation and lack of innovation

What went wrong? According to CNN, the main problem with Apple is the lack of innovation. The current iPhone 8 is largely just repeats the design, sixth model. Approximately the same situation is observed in the development of other products. It’s hard to imagine that a similar problem appeared when Steve Jobs, who was ready for the changes and reforms that would benefit the users. Cook the main difference from its predecessor, lack the courage to present truly new products.

Tim cook, by and large, focused on profit, and it is really managed. For example, last year the profit of the company amounted to 88 billion, and net income exceeded $ 20 billion. But in 2018, the users, it seems, saw through the greed of Apple and understand that the company produces to the markets is virtually the same device. This has led to a drop in smartphone sales: buying new iPhone with features like its predecessor, but with a large price tag, ceased to be relevant for Apple fans.

Apple actually reached the “innovation stagnation”: the company presents the really new devices with disruptive technology, and it is going to harm her. Now it is betting on the development of services and partnership programs, but as sales show, this policy hardly helps the company to raise the level of sales of their devices. While Apple still positions the iPhone as a “cash cow”, the engine for the extraction of money ā€” but this engine might break down, if time does not be improved.

Competitor as an example to follow

With similar problem to Apple already faced its biggest competitor ā€” Microsoft. In the beginning this Corporation is also in crisis, but was able to get out of it thanks to the extension support Office, making it free for certain devices made by other manufacturers. Helped offset reference points: new Microsoft executives have done everything possible for the development of cloud services, and it helped them lead a company one of the leaders of American IT-companies. Microsoft realized that Cloud technologies can be useful and necessary to users, and decided to use it.

The situation with Apple, however, is slightly different: unlike Microsoft, which main profit comes from software and services, Apple’s revenue consists of sales of iPhone, iPad, Mac and other devices. Experts agree that KUKA would be worth to pay attention to the activities and also Tesla to build electric cars with autopilot. Would help lower prices for devices: iPhone at a current cost of about $ 1,000 deters many potential buyers who know how to count money.

Another way for Apple to create a budget products, for example, available iPhone. It could preserve the status of the new XS and XS Max as symbols of luxury and at the same time to discover a new market segment of inexpensive and available devices. Otherwise, no changes in pricing policies, and without the use of new technology, Apple led by Tim cook runs the risk of repeating the fate of Nokia, becoming if not the underdog of the market, at least as its dominant component.

Graphics taken from the CNN website.

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Clifton Nichols

Clifton Nichols

Hi! Iā€™m Clifton and I am a full-stack engineer with a passion for building performant and scalable applications that are beautiful and easy to use.

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