Is Ap­ple In­no­va­tion A Thing of The Past?

Industry Leaders - - Latest In Business -

In­no­vat­ing around the same things is not re­ally in­no­vat­ing. When a tech­nol­ogy com­pany starts los­ing its mo­men­tum, it is ei­ther forced to buy its future (think: Hewlett Packard) rather than build it or­gan­i­cally. Many won­der if Ap­ple Inc. is in the be­gin­ning of its apogee, a point where a com­pany starts los­ing ground due to lack of in­no­va­tion. Is Ap­ple Los­ing Mo­men­tum Due To Lack Of In­no­va­tion?

In an in­ter­view with CNBC’S Jim Cramer (for­mer hedge-fund man­ager and TV per­son­al­ity), Cook noted a dis­con­nect be­tween the pop­u­lar­ity of Ap­ple prod­ucts and sto­ries in the me­dia that claim “Ap­ple is dead’’.

“To put that in per­spec­tive, the $10 bil­lion is more than any other com­pany makes. So it was a pretty good quar­ter, but not up to the street’s ex­pec­ta­tions, clearly,” Cook said.

Cook fur­ther added that broader macroe­co­nomic con­cerns were at play be­hind the fall. An in­creas­ingly large num­ber of users are up­grad­ing at a lower rate than they did a year ago. More­over, the up­grade two years ago was ab­nor­mally higher. This com­bi­na­tion - de­clined up­grades, cur­rency rates and macroe­co­nomic is­sues made things far from rosy for Ap­ple. Three years ago, when Steve Jobs’ suc­ces­sor Tim Cook sat on the throne, pun­dits won­dered if he’d be able to steer the com­pany back into its cre­ative force. Come 2016, and Ap­ple is close to be­ing usurped as the world’s big­gest com­pany by none other than Al­pha­bet Inc., Google’s par­ent com­pany.

New prod­ucts like the Ap­ple Watch and Ap­ple Car surely in­trigue in­vestors and early adopters, it’s go­ing to make lit­tle to no dif­fer­ence to the pre­cip­i­tous drop in its sales. In other words, iphone sales in the next quar­ter will have to be a record high for Ap­ple to come out of deep wa­ters. Con­sumers are switch­ing from IOS to An­droid at an un­prece­dented rate.

The rea­son why iphone sales keep fall­ing is be­cause con­sumers have no good in­cen­tive to

up­grade. The lat­est iphone sure has some very broad changes, bet­ter fea­tures like Ap­ple Pay con­tact­less pay­ments and aes­thet­ics, and yet it is seen as less of a revo­lu­tion. It looks vaguely sim­i­lar to pre­vi­ous ren­di­tions from the prod­uct line, and the up­grades are rel­a­tively mi­nor. This is any­thing but dis­as­trous for the iphone maker. The ru­mor is that the next iphone will de­but with as­tro­nom­i­cal changes rather than fewer up­grades. Those who are hold­ing off the up­grades at the time may flock to buy the new one at some point. These are still ru­mors we are talk­ing about. The ques­tion is, will Ap­ple al­ways be known as the iphone maker? In an in­dus­try built on the no­tion of “dis­rup­tion,” will Ap­ple truly in­no­vate again?

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.