Analysts Believe Apple Needs To Improve Web Services To Stay Dominant


By: Ali Raza  |   January 12th, 2013   |   Android, Apple, Google, iOS, Mobile Apps, News

Developing software and hardware that work perfectly together is an Apple trademark and has the made the California based company a leader in the consumer electronics sector. Rivals have been left in the dust and are only just catching up to the company’s rich ecosystem of iPhones, iPods and iPads. However, when it comes to web services things are not as bright for Apple as they are on other fronts. Apple’s web service like MobileMe, Ping and the unforgettable Maps App were large failures that point out the company’s weakness clearly.

 

Ben Reitzes, a Barclays analyst points out that the, “maps debacle showed investors how valuable Google technology was, how hard it was to replicate, and how Apple may struggle as the world moves beyond iTunes toward cloud-based services”.

 

Due to this very reason, Apple also lost its ground as its shares price saw a sharp decline and fell from $702 to $524 when the Cupertino company eradicated Google Maps from its services and introduced its own map app. This move from Apple has not only shattered the confidence of its share holders, but it has also revealed the vulnerabilities of the firm.

 

The entire map fiasco proves that having excellent web services along with first-rate hardware is the way to stay on top. Therefore, it is the need of the hour that Apple should improve its web services in order to complement its hardware. And a company like Apple has the power to pull this off and Reitzes adds that, “We believe Apple can turn the tide with a real move into payments, an integrated iOS-led television service and improvements to iCloud (including subscription-based services). These types of services could re-convince investors that Apple’s ecosystem carries a high switching cost and reinforce the value of an “iOS subscriber.” We believe there is a perception that Amazon and Google are better in web services than Apple – and in order to command more investment dollars – Apple needs to take its innovation in this direction.”

 

Source: iPhoneinCanada

Photo: Picturess

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