Despite Apple’s incredible past success, it has hit its peak
and declined in profit down to the same level as many of the other
technological companies. Samsung, on the other hand, is becoming the new talk
in the world of technology. Samsung has increased its spending and is becoming
much more successful in creating new, popular technology. Apple has reached a
point where they are only updating their current products instead of making
new, better products like Samsung has been doing. One thing that Apple has been
working on is the iTV. Television has a lot of potential for change and
technological advancements. For a company that has mostly mobile, computer, and
music devices, an iTV would give a broader range of devices to Apple. However,
the cost of the iTV will be high, so it is “limiting their mass market appeal.”
Also, since the death of Steve Jobs, new breakthrough products have not yet
come to market for Apple. Apple’s price earnings have not been too high for
Apple in a while either. Their earnings have been around market average since
around 2008. One thing that Apple is thinking of doing is aiming a cheaper
iPhone at emerging markets, like China, where people may not be able to afford
the iPhone at the price it sells at today. Apple’s new strategies and
technological advances will hopefully bring them out from being your average
technology company and put them back on top.
http://www.economist.com/news/business/21570751-worlds-most-valuable-firm-may-be-past-its-prime-has-apple-peaked
5 comments:
Our generation grew up with Apple producing the latest and influential technology. I personally remember when the first Ipod first came out and how everyone wanted one. Apple's reach grew like wildfire. However, I agree that Apple has reached its peak. Over the years, all we've seen are small tweaks and bug fixes on their current product line. We're already on Iphone 5 and Ipad 3. Just how high of a number do they intend to reach before actually coming up with something groundbreaking. I believe if Apple doesn't create/produce an original innovative product soon, Samsung will rapidly close the distance. Even if Apple creates a new product, they still may not succeed. They have tried to tap into the television market and failed miserably for a company that has such a tremendous presence in the world. Therefore, Apple may just be destined to ride out the Iphone and Ipad fad as long as they can.
I disagree, I feel like with our generation apple has become almost a namebrand. You have to remember that apple is more then the "I" products, as successful as they are. They were originally a computer company, and have definitely carved out a very niche market there. They produce software, and Apple ITunes alone creates a huge profit for them that cannot be dismissed. Apple may be on the fall currently, but thier stock is still 450 USD per single share, and has been an incredible investment to ride in the past few years. They are no longer posting huge profits, but they are still posting very respectable profits, just not what their investors have come to expect from the powerhouse that apple has been in the past.
Apple does seem to be slowing down. As Kevin alluded to, Apple used to be about innovative products but has recently disappointed longtime customers. However China is such a huge potential market that Apple might not even need a new product.
Apple has been getting quite the press lately, and rightfully so. However, I'm not ready to jump ship yet. The credibility that Apple has built in the American market I think is too great to sell off this early. It is true that Apple's product mix has been TIGHT over the past few years as they have nearly perfected their computers and handheld devices while maintaining a staggering brand loyalty. But this large lead in the market is diminishing as competitors such as Samsung and Google are closing the gap. As consumers are realizing that they can find less expensive, equal quality alternatives, Apple will continue to be dominated on a global scale. Yet, Tim Cook has provided shareholders hope with continued interest in perfecting an Apple television. Positioned and priced consistent with Apple's brand, it wouldn't be for everyone. But this may not be enough to provide for Apple. The real game-changer would be an iPhone device competitively-priced on the global market to increase their dismal 4% global share. As Apple starts making these moves, I think the stock share will rebound and will begin making strides towards the next new thing.
I think Apple reached "the peak" that many people are referring to because they were such innovators. They created and controlled - and still control - the tablet market. Slowly, other companies are creating and updating tablets to try and make a dent in this area. It is easy to say they have to keep innovating and creating new, great products, however, as we have seen with the rumors swirling around the iTV, Apple will reveal a product when they think it is ready and can be a great product for consumers. I think Apple is on a safe and steady track, but I think them taking such charge in creating markets has made them slow down due to competition.
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