Is Apple Innovation A Thing of The Past?
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?