What The iPhone Gives, The iPhone Can Take Away
Summary
- How long can Apple use the iPhone as a carrot for consumers to continue with the tech giant?
- The real problem Apple faces – beyond the iPhone.
- What Apple should change with its product strategy.
- Losing increasingly being associated with the Apple brand.
Now that the future of Apple (NASDAQ:AAPL) is increasingly dependent upon the success or failure of the iPhone, it has put itself at enormous risk if the smartphone starts to falter by failing to gain market share in new markets. In the current environment, as most know, that is China.
It is obvious that Apple has a couple of options going forward. It can either try to duplicate its past success of developing and releasing innovative products that create new markets, or it can focus more on its existing products and services to generate more sales per customer. Since it hasn’t had a new, meaningful product hit since 2010, it suggests the company needs to focus on getting more of its current customer base than try to develop products without a proven market.
The question is this: how can Apple make the transition to a more balanced portfolio of products and services without losing its former innovative edge? The answer to that is in the eyes of investors and to many shareholders it has already lost that edge, and it’s time to take a different route to generate growth.
That said, there is also risk associated going with what appears to be the safer and more predictable route as well.
Apple must do something to address its iPhone exposure
You know a company is in trouble when it has a plethora of products it offers to the market, and only one of them is relevant to the bulk of its performance. That’s obviously the iPhone with Apple, and with the North American market having little more in the way of growth left in it, and the company struggling to brand itself in China, it underscores its risk in association with its heavy dependence on the iPhone to grow the company.
Source:-Â http://seekingalpha.com/article/4027951-iphone-gives-iphone-can-take-away
