The Decline of Apple: A Look at Their Recent Struggles
One of the biggest mistakes that companies, especially start-up companies, make is to raise prices when their product doesn't sell well. This is exactly what Apple has done with their iPhone sales. Despite making the most amount of profit so far due to higher prices, they have actually sold fewer iPhones than expected. This mistake has led to a significant decline in Apple's stock price, dropping almost 50% in recent months.
The lack of iPhone sales has also led to a change in how Apple reports their sales figures. Tim Cook, the CEO of Apple, has stated that they will no longer be reporting unit sales for iPhones, iPads, and Macs due to lower sales. This is a unique move by Apple, as most big tech companies do report their sales figures every quarter. However, this decision has led to investors being disappointed, as they were expecting better sales numbers.
The poor performance of the iPhone has also had other consequences for Apple. The company's stock price plummeted in 2018, causing a loss of over $450 billion, which is more than Facebook's entire value. This decline in value has put Apple at risk of losing their trillion-dollar valuation status. In fact, Microsoft, Google, and Amazon are now more valuable than Apple.
Despite the struggles with iPhone sales, Apple seems to be focusing on services as a way to increase profits. By offering subscription-based services, such as music streaming through Apple Music, the company can generate revenue without relying solely on hardware sales. This shift in strategy has led to an increase in open-source technology and collaboration between companies.
In recent weeks, several other tech companies have announced plans to integrate Apple TV functionality into their own Smart TVs. Samsung was the first to make this announcement at CES 2019, stating that they would be including iTunes, Apple Music, HomeKit, and AirPlay in their upcoming models. This move is seen as a way for these companies to compete with Apple's dominance in the smart TV market.
One of the most interesting announcements came when Vizio, Sony, and LG also announced plans to integrate Apple TV functionality into their Smart TVs. However, unlike Samsung, they will not be including iTunes exclusively. This move suggests that Apple is becoming a more open company, willing to partner with other tech companies to achieve common goals.
The reasons behind Apple's shift in strategy are unclear, but it's likely due to the poor performance of their iPhone sales in 2018. Despite being the first US company to reach a trillion-dollar valuation in August 2018, they lost almost half of that value by the end of the year. The decline in stock price and loss of valuation status has forced Apple to reevaluate their strategy.
In conclusion, Apple's recent struggles with iPhone sales have led to a significant decline in their stock price and a shift in their business strategy. By focusing on services, such as music streaming and smart home integration, the company can generate revenue without relying solely on hardware sales. The partnership between Apple and other tech companies, such as Samsung and LG, suggests that the company is becoming more open and willing to collaborate with others to achieve common goals.
What's Next for Apple?
As we look ahead to 2019, there are several upcoming products that will be worth keeping an eye on. One of the most exciting releases is expected to be a new AirPods model, which has been delayed several times already. The release date for this product is still unclear, but it's likely to be one of the biggest announcements from Apple in 2019.
In addition to new products, Apple is also expected to make some major changes to their business strategy. As mentioned earlier, the company's focus on services is set to become even more prominent, with a renewed emphasis on software and subscription-based revenue streams. This shift in strategy is likely to have a significant impact on the tech industry as a whole.
Whether or not these moves will pay off for Apple remains to be seen. However, one thing is certain - the company's struggles with iPhone sales are a wake-up call for investors and analysts alike. As we look ahead to 2019, it's likely that Apple will continue to navigate this challenging landscape, but the question on everyone's mind is what will come next for the tech giant?