Apple Dealing With Changing Trend

By: Zain Nabi  |   March 7th, 2013   |   Apple, Smartphones

Long before the dominance of smartphones in the market, Apple competed with Microsoft with the latter apparently having an upper hand by reaching a wide range of audience across the globe. There came a time when Apple nearly got broke but its founder Steve Jobs proved to be a saviour for the company and took it to new unimaginable heights.

 

Apple had already dominated the smartphone market during Jobs’ era, but after his departure the company faced a daunting task of competing in the market. Since Apple’s smartphones had not penetrated all the global markets during Jobs era, it became a bit easier for new smartphone makers to dominate the market.

 

Jobs’ successor Tim Cook faced challenges from many companies including Samsung that uses Android in its smartphone and goes neck and neck with Apple. Cook is still facing a troubled situation because Apple apparently has to reset its strategy. In order to expand the business and capitalise on the success it has attained of late, Apple has to satisfy its investors, while it also has an opportunity to penetrate in the global market.

 

However, Apple is confronting a number of issues including the high cost of its products that is not going to please all the global markets. So now Apple has some tough calls to make, but it is not sure if it is brave and bold enough to do that. UBS analyst Steve Milunovich recently sent to his clients a note titled “Identity Crisis: Can Apple Play Defense?” In the note, he said of Apple, via ZDNET:

 

“Apple historically has played the role of underdog, beginning with its niche Mac status after losing out to Windows. The iPhone and iPad are the first times Apple has had a leadership position drawing significant and competent competition.”

 

But now Apple is successful company with solid revenue and even higher expectations to meet. Milunovich said:

 

“It doesn’t appear to be in Apple’s DNA to cover market spaces just to get revenue. Yet now that the company is so large due to iPhone success, investors are clamoring for product expansion with larger as well as lower-priced phones with Android gaining favor.”

 

At this point of time, nearly every company in the market is looking to create something different and unique and use its innovation to beat its competitors. Milunovich says of this trend and Apple’s plans:

 

“The only way out might be innovation in new categories, which will require investor patience. Most companies would rush out a 5- to 6-inch phone; Apple probably won’t.”