There has been tons of speculation recently about the way the most interesting company in the world, known as Apple, is headed. Stock prices fell below $400, an over 40% decline since an all time high last September. The company has not introduced a new product in over six months and it will be at least another three by the time a new one is available in the marketplace. Lastly, competition is rising as the HTC One and Galaxy S4 are slated to be on the market soon which could lead to a decrease of sales of the iPhone. Apple will release its quarterly results next Tuesday April 23rd and the numbers are expected to fall short of Apples quarterly forecast, which will decrease the stock price even more.
While there is cause for concern, as with any major corporation, Apple does have many thing to look forward to with one of them being customer loyalty, great management, and near future product releases.
There is not a consumer base out there that are as loyal as Apple consumers. An easy way to prove this is look around any DePaul classroom. First of, the vast majority of students have some a Macbook as their laptop. A greater portion of these students also have an iPhone as their phone. Finally, I would bet that these students also listen to iPods on their morning commutes to school or work. To truly find a company that has better customer loyalty would be a task in itself.
Another reason that Apple will rebound is because they have great management. Many people say that Steve Jobs made the company what it is today. That is true in a way but the support and management around Jobs had to be up to his level as he could not control every part of the company. Apple did not become one of the most valuable companies in the world because of one person.
Many investors proclaim that the reason the stock price is falling is because Apple has not released any new products. That is about to change in the upcoming months as there are speculations the new version of the iPhone is slated to come out late this summer. When Apple states the new iPhone release date, that alone will boost stock price. As shown by the image to the right, stock prices increase significantly when a product is released.
As we know, Apple has been one of the most dominating and valuable companies in the world. Recently stock prices have dropped over 40% and sales are predicted to fall short of the quarterly forecast. Many loyal consumers are waiting for the next big thing from Apple but the company is not delivering. What do you think about Apples recent struggles? Has Apple really lost its touch in the market as competition is constantly increasing or will the release of the new iPhone restore Apples value and investor confidence in the company?
3 thoughts on “The Fall of Apple?!?!?”
I believe that this article is really interesting. Apple has actually been going down, to me, ever since the iPhone5 came out. I believe this is because the phone came out too fast without much upgrade. I have a couple friends who have says that there is no point in getting an iPhone5 if you have a 4s already. It is basically the same thing. There are some people who says that the iPhone5 is a lot better, lighter, and faster than the iPhone 4s. Because Apple has so much customer loyalty, I do not believe it will go down too much.
You’re right, Apple has an extremely loyal customer base. Whenever you hear a friend switching from iPhone to Android, part of you doesn’t want to severely question their actions. But if you look at years past Apple has been known for announcing new products fairly frequently and or at least the buzz around them was more substantial. Looking forward, I think apple needs to look back more at what their customers want. Their next iPhone can’t just have a faster processor and new camera, it needs to have features that other phones have like near field communication and something like Google Now would be awesome. If Apple is falling in anyway it might be in innovation, which is something they have to improve on.
Perhaps Apple’s temporary hold on releasing new products is not such a bad thing. What I remember the most about the release of the iPhone 5 was an overload of customer complaints. Shortly after this launch, Jim Cook took the control back with raising the standards for quality purposes. Regardless, Apple may be holding out their new product as sort of a correction to the iPhone 5 launch that fell short. The delayed launch of a new product may be to ensure its quality. If this is Apple’s strategy, I am happy to see that the company is taking the initiative to protect their reputation of high quality products.