Is Apple Heading the Right Direction?

A recent report from Kantar WorldPanel ComTech shows that the market share of iPhone has dropped in the U.S. while it has increased in almost every other countries in the world. According to the report, the market share of the iPhone has dropped 3.3% in September compared to last year in the U.S. An article from BGR which quoted the data from ComTech’s report says that Apple isn’t really concern about the market share in the U.S, or even the market share in the world. It is now focusing on providing the better product and experience to consumers.

Being the most valuable public company in the world, it is shocking for me to know that if Apple is actually not concerning its market share in the cell phone market. As a public company (or even a private company), act in share holders’ interests is arguably the priority task. It seems to me that Apple is now a little off balance in term of serving the interest of the share holders and its general customers. A article from Nikkei says that Apple is now considering to let Pegatron to join the production of iPhone 6/6Plus along with Foxconn to meet the demand around the globe.

Is Apple actually should not be concerned about the market share in the U.S. as long as the numbers in other countries look good? Should they set up another assembling line to meet the demand in other countries and provide the best product and experience to its users or should they be focusing on the U.S. more?


Nikkei – Pegatron Beefs Up For Robust iPhone 6 Demand

BGR – Apple Actually Lost Market Share in Q3 Despite iPhone 6 Launch

17 thoughts on “Is Apple Heading the Right Direction?

  1. I think it’s interesting that Apple now has a decreased hold on the phone market share in the US. I have definitely noticed in the past year that many of my friends are making the switch from iPhone to Android. I think that Apple should be concerned about decreased market share in the US simply because the American economy is very consumer-driven, and the rest of the world looks to us because of that. I recently did a group project concerning apple and it’s business ethics practices, so I don’t think that Pegatron should join the manufacturing circle for Apple.

  2. Great Post! This was a little shocking to read, I mean like you said, I would think that a company would want to keep market share and if I was a shareholder I would be worried about it. I think the market is getting very competitive now in comparison to maybe 3 years ago when the Iphone ruled. I’m not an Iphone user and I’m slowly also shifting towards other brands other than apple for electronics (computers). Apple had the market in lock down, and I believe that they now need to keep improving their products because competition is continuously improving their products.

  3. Very interesting! I see where you’re coming from but I can also understand Apple’s idea and where they are trying to get. I feel that focusing on consumers should come first and shareholders come after. If a company is providing the best service they can to their customers then they can increase their profits then with this increase in profits they should see an increase in shareholders. These days everyone is trying to provided the best service they can so that their customers feel like the company is worth their time and money compared to next best service provider who constantly sends them in circles when they have a problem. Apple already has a pretty good product line and they most likely have the best product available, now focusing on customer service just puts them even a bit more further against the competition.

  4. I think that Apple should focus wherever they feel they can generate the most profit but they shouldn’t ignore the US market. They should continue to try and improve their products so that they can sell more products in the United States. The United States is too big of a market to lose and they have most of it right now.

  5. Right now Apple is number 5 on the fortune 500 list. They have done this through years of product innovations and creating new segments of the market to compete in, which they have the lead in almost all of them. based on this I think that working toward better products is a good goal to focus on.

  6. Many big companies have all faced the same issue. It’s one of stifling innovation. Apple soared to success via innovation, iPod, iPhone, iMac, ext. However with the passing of Jobs the company inst innovating. They are simply updating current products. The twinkle in the eye is missing. I think the cracks on the wall are starting to develop, ever so slowly. No one company can have all that power. The titans rise, and the titans fall. The east india trade company was once the most valuable in the world. Not it is not. Apple will have it’s time when a new, small, and hungry company develops a new innovative product.

  7. Interesting post! I do not believe Apple should be concerned about the 3.3% drop. Although I’ve seen a lot of people switch from Apple to Android, I still see Apple controlling the market. Apple already has good products, maybe just improving customer service, or be more lenient with fixing broken screens and small things like that will help.

  8. It is really true that Apple’s shares in U.S dropped significantly. In my Finance class, we had to do a stimulation of how the market works. I picked apple and bought some shares. It was pretty shaky and not predictable. They dropped quite a bit, but once again when up again. Anyways, the fact does not change that it is still Apple. Such an amazing company, which they always comes up with great design to their products. I love the fact that you can get helped when I go to the store. The employees are really knowledgeable on what they are doing and friendly. I would never betray Apple!

  9. I feel that Apple, being as powerful and wealthy as it is, should not be too concerned about losing shareholders or customer reliability when the brand itself is already what is in demand. I do think that focusing on international revenue would be the next best step in meeting market demands and that setting up more assembly lines worldwide would coincide with the inevitable higher demand of their product. To reiterate, Apple is already a well established American brand and expanding their business to other countries would bring favorable growth to the company that would in turn, offer more growth for future and current consumers.

  10. I see that you are talking about how Apple’s market share is decreasing here in the United States but is increasing in other countries. Apple is going to do what is most profitable for them. All for-profit companies are in the industry to make money and minimize loses. With so many competitors here in the United States that provide similar products that Apple does (some superior some maybe not depending on personal opinion) I think they are strategizing by growing in parts of the world with less competition. Perhaps in some different countries there aren’t as many choices for a smart phone and Apple is looking into that. It will be interesting to see what the future holds for Apple.

  11. I recall Apple (iOS) is only updating their features for their current product unlike android. When arrived in the market, it was groundbreaking. I also picked up my friends complaining about the customer services, acting on all these they still can shine in the marketplace.

  12. apple should definitely set up production lines around the world as the demand for smart phones is ever increasing, but one thing that concerns me is that the US are probably the most up to date country in the world, with the introduction of android (samsung etc) in the states declined market share of apple. if this is true, will there be a similar pattern across the world once android phones get more recognition around the world?? but as for apple it will always be the first thing that pops into my mind when someone mentions smart phones. i think apple should consider what customers really want instead of doing things in what they THINK is necessary, for example the new laptops come with only 1 USB port and no disk drive, and parts ex. charger etc are very expensive.

  13. I truly believe Apple is heading in the right direction the most loyal customers in the world belong to Apple. Once you go MAC you never go Back.there is a saturation point for the peak of market share it will dip down a little like it did but you keep the loyal market share holders for ever. Apple reached a point where their products must cater to the high and expensive customers don’t bother with the little fish a big example when they tried the iPhone 5C cheaper for the public its not too appealing therefore Apple knows their customers now and what they want.

  14. The company should concern itself with its U.S. market. Despite its success in other countries, the acceptance of a product in its home nation is also essential. It sets a good example for the rest of the world. The organization should not focus its concern on the rest of the world and neglect its local consumers. The renowned firm ought to consider all its clients without excluding the interest of some. Investing locally acts as a foundation for quality services to the immediate community, which is every business’s responsibility.
    Furthermore, it is appropriate for the organization to set up a new assembly line in order to meet the demand of its foreign clients. Apple is a multinational organization, where the world is its obligation. Therefore, the organization should focus on the global market, including the United States. These efforts will increase the company’s global sales. On the other hand, the customers benefit from quality products and services. Therefore, both parties win, including the U.S. Focusing on the American market could compromise the bigger picture, which is the rest of the world, which is a much more significant market.

  15. I strongly believe that Apple is heading the right direction. The aim of any company is to make a profit and to focus more on the global market is a good strategy. however, Apple is still concerned about the US market share, the recent news is that “iPhone6 drives 50% Increase In US Smartphone Market Share”( which mean that Apple is not ignoring the US Market.

  16. Apple is going the right direction because as they increase sales they put stones on the road, for example they added a C-Port to the new Macbook which is highly anticipated product as it is the next face of apple and technology BUT the draw back is that you must buy an adapter worth 60$ just to use normal USB’s and HDMI and things that are still required as mandatory.
    That aside is is all alloy and recycled products which is amazing as the quality is top of the line as always, I myself am a Mac person so this isn’t a surprise for me.

    They put a better display – yet remove the CD Drive
    They make it the thinest Mac ever – yet remove all ports

    Pros and cons will be major in this company

  17. I thing in my opinion apple is not heading to the right direction because of 3.3% shares drop from the US market which is now 5% after the launch of the new iPhone 5s because investors fear the handsets are too expensive. so from my opinion apple should try to do a new production line and try to downsize the cost. they can offer a more friendly user apps (that means easy to use even by kids) and also try to focus on the US market needs since the other global markets are still doing well but that does not mean to forget about them. The truth is my first phone was the iPhone 4 so I’m really comfortable using it.

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