It is Apple`s turn! Houston, We’ve have a Problem!

Posted On 2019-01-28

Apple is the world’s largest information technology company by revenue, the world’s largest technology company by total assets, it is very well known premium brand which everyone knows that founded by Steve Jobs. He was everything to Apple and Apple is his legacy. But every brand has its up and down, like during 1991 to 1997 when decline happened and the brand had go through restructuring & acquisitions in order to be able to return to profitability. It has been an example in terms of profitability & innovation since then but it looks after Jobs, the ideas and creativity is drained and there is nothing new to offer anymore.

The bottom line is that “ APPLE IS STRUGGLING!!! ”

Yes, it is true! it`s a fact that no one can deny it!

They call it Apple`s golden goose, The Majestic iPhone!!! It looks like that the golden goose could be become the nemesis.

Apple launched first generation of iPhone in 2007 and App store was up and running by 2008. In one month they sold like over 6 million apps and generated daily revenue of 1 million USD & really fast iPhone became a huge success for Apple. There were many generation of iPhones which came after each other and they were innovative & consumers queuing for the new iPhone. The result of mobile biz for Apple was so appealing and sweet that over these years iPhone became the main pillar for Apple business which more than 60% of total revenue. No doubt that the profitability is amazing but the reality is that Apple has became to dependent on iPhone as them main source of business. it is really risky for the giant brands like Apple. So what will happen if the iPhone fails which the majority of the net sales is coming from it?

One of the most famous quotes from Steve Jobs was this:

“I think if you do something and it turns out pretty good, then you should go do something else wonderful, not dwell on it for too long. Just figure out what’s next.”

This is something that has been missed for recent years & there is slowdown in sales growth which is raising red flags.

First issue is Apple survivor is dependent to iPhone success:

And the red flags are :

Company does not have another blockbuster product to replace the iPhone.
The company’s shares, which have fallen 5 percent this year, bounced around in after-hours trading and were down more than 2.6 percent.
The 0.4 percent growth in shipments was the lowest since the product was launched in 2007.
iPhone sales were expected to fall for the current quarter compared with the same quarter last year, Chief Executive Officer Tim Cook said on a conference call with analysts.
60 percent of people who had an iPhone prior to the launch of the iPhone 6 have yet to upgrade to an iPhone 6 or 6S.

“Fact & figures”