Things don’t seem to be going too well for the Silicon Valley giant “Apple” it seems. As things stand there are many who have started deducing that the fortunes have finally turned and sooner or later Apple will be heading the Samsung way. What has happened to Apple in the past one year that such news have started doing rumors and what does the future hold. Lets look at the sequence of events which has led to this skepticism.
Apple reported last month that the number of smartphones it sold worldwide fell by 16 percent to 51.2 million units in its fiscal second quarter ended March 26.The company’s overall revenue and profit for the quarter also fell from the same period last year given how iPhone has been the company’s top money spinner a fall in ales were bound to impact its profits and revenues. To make things worse in the aftermath of Apple’s disappointing earnings report that brought news of a slowdown in worldwide iPhone sales, the company’s stock price dropped for the eighth consecutive day on Monday, a losing streak not seen since 1998.
Though all of it may seem like an overreaction as Tim Cook, the CEO of Apple puts it for its is still the most prominent market player and even if the iPhone sales are falling the services like cloud and music are generating revenues. Also as per him that Apple is a victim of its own success and still doesn’t have rivals which are eating into its market share. As he puts it the company is to an extent the victim of its own success in the previous year with the iPhone 6. People are upgrading at a lower rate than they did last year but still higher than the year before, as the company had an “abnormally high upgrade rate” last year as people bought into the iPhone 6 and this is the reason for the falling sales. And he points out that there are a lot optimism and also the future seems to be anything but strong because of the booming middle class in China, Apple largest market outside the US with the population to swell 10 times in the next five years.
However optimist Cook remains but the fact remains that Apple is facing iPhone fatigue and pressure is mounting for the company to innovate a new wow design beyond its standard rectangle form factor. Its success and Failure on this part will determine what the future holds for Apple.