Being Number 1 or Securing Company’s Future – What is Apple’s Priority?

By: Zain Nabi  |   April 29th, 2013   |   Apple, Business, Smartphones

Apple undoubtedly is credited for being the most innovative company in the smartphone market and the entire technology sector as it keeps on coming up with new and creative products and features that attract millions of users from all over the world. Although this trend has shifted a bit recently with many other companies jumping in the market to give tough time to Apple, the latter has not lost its creativity yet.

 

That said, Apple’s latest product, the iPhone 5, despite being another valuable addition in the company’s product line, is unable to register heavy profits and many consumers are seen moving back to older versions of the iPhone. This has prompted some analysts to question Apple’s ability to sustain in the market and keep its innovativeness intact. They fear that since Apple is unable to entice customers with its innovative features, the company might start losing customer base and eventually suffer heavy losses.

 

According to a report by the LA Times, some investors are concerned about the way Apple is performing at present. They fear that this trend will likely hit the profit of the company and hence there would be nothing special for the investors to enjoy. It says:

 

“And going forward, Wall Street wonders whether there will really be enough new features on the rumoured iPhone 5S presumably coming this fall to generate the kind of enthusiasm to cause fans to set new sales records and return the company to the faster growth investors crave.”

 

If Apple keeps its focus on increasing sales figures it could become a company with huge profits shortly. Its sales will flourish and it will once again become the top company securing the highest profit in the market. But what if this is not Apple’s present strategy? What if Apple is up for something different?

 

A report by Forbes here highlights pretty decent facts supporting Apple’s current position. While many customers are shifting to older versions of the iPhone that are cheaper as well, there hardly seems to be a need for introducing a new budget phone. But introducing the budget phone is not entirely about securing profit. In fact it is aimed at retaining consumers who would expect the company to keep on coming with something new in the future as well, hence gaining loyalty of the customers.

 

Here, it should also be noted that Apple’s current chief Tim Cook has repeatedly asserted that the company is looking to secure its long-term future rather than eyeing short-term goals. This says a lot about Apple’s current performance.