Apple Company is showing poor performance from the last two quarters. They are in no comparison to profits that Apple earned two years ago. Tough competition is one reason; however, Apple according to many experts is not performing well under its new CEO. Recently, a popular technology website CNET predicted that Apple share for the third quarter will show decline.
One of the main reasons for this downfall is the decline in innovation by the Apple Company. A leading brand consultancy “Brand Keys” recently launched a survey result that depicted about innovation in technological companies. The company asked 4000 adults about their perception about different companies regarding innovation. Apple ranked first in the last year survey. However, this year it smacked down to fourth position. It is quite an unfortunate result for the Company, as it is losing its innovation image in the eyes of its consumers. Google which remained “second” last year succeeded in getting “first” position. Google was followed by Amazon, Facebook and then Apple. The response of the Apple Company did not emerge till now about these worrying results. However, it would have ringed the alarm bells in iPhone 7 top management.
One of the main reasons for decline in innovation is Apple in-competitiveness as compared to other technological companies. Google is flying innovation jet by introducing driver less cars and introducing its new Smartphone. Amazon is entering into drone supply. Facebook is brining innovation everyday with live video, Facebook 360 etc. Hence, these kind of constant innovations are not being done by Apple Company. Interestingly new companies also stepped in top 20 which showed that the consumers were well aware of new brands.
Many critics of Apple argue that the innovation base of Apple is not increasing. It is introducing the same kind of things in different products. “Apple Smart Watch” got limelight by many technology gurus. However, it was unable to achieve its projected sales. The main reason behind poor sales result was Apple innovation in a traditionally outdated thing. Apple targeted customers were young people. However, watches unfortunately are not much popular among this group. It is considered as a burden on the wrist. Therefore, Apple smart watch did not received expected results.
On a brighter note, things might change in the future now. Apple soaring profits have already worried the Company’s top management. They are looking for new collaborations in order to attain their previous position. China is posing a greater risk to Apple. Chinese government has devised policies that are encouraging local brands. Apple in 2014 received its greatest profit from China. It is working to retain that market and trying its efforts in India to increase its market share which is one of the largest economies of the world.
With greater innovation and right policies, Apple can get back on the path of success. If it missed any of the above ingredients, the future of Apple can become bleak.