Apple should do what it does best

Has Apple reached a saturation point, a plateau? Or is it user fatigue that’s causing its current distress? Its products are still amazing and spell innovation for the diehard fan, but for average smartphone users in developing countries, who Apple is now targeting, its products offer no bite because they don’t fall into their budgets. Customers from emerging economies, while being cost conscious, can turn unpredictable big spenders, a purchasing trait the giant did not catch when it thrived in its home and other developed markets during the wonder years. The affordability factor could be one reason why Apple’s iPhone is seeing a dip in sales. First quarter results show revenue has also fallen and there is a view, though not unfounded, that the technology powerhouse’s salad days could be over. However, Tim Cook, the company’s chief did not admit it when he said: “This too shall pass.’’ Apple earlier tried to soften the hard landing by plugging reports, which said the poor results were expected while it tried to shed its elitist tag in the face of mounting competition from Samsung, HTC and Huawei, who are fast gaining ground into what was once its hallowed turf.

The Korean and Chinese brands spread the net wide first and now cater to every segment of smartphone users, before taking on Apple’s flagship iPhone with their own intelligent devices. Now, Apple is trying to do a Samsung by offering cheaper, older versions of the iPhone, which haven’t made a dent in countries like China and India, which Cook says are important markets with 4G being rolled out. But it’s not all bad news for the company with services like Apple Music, iTunes, Apple Pay and the App Store doing reasonably well. The tech pioneer said revenue from services soared to a new quarterly high of $10 billion. So what next for Apple in these uncertain times? Should the firm appeal to the masses or bet on its innovations to drive growth. A smarter iPhone would further burnish its brand name and wow geeks and those who can afford it. Apple will fare well by unveiling a killer product for the masses rather than playing catch up with the rest by dumping discarded devices on emerging markets. The sooner it realises this, the better for its revenues.