Back in the year 2007, the late computer and tech visionary Steve Jobs arguably reach the pinnacle of his second tenure as CEO of Apple when he introduced the world to the i-gadget that changed everything about mobile communication devices: iPhone. Over the next few years Jobs oversaw the evolution of this groundbreaking product through its first few incarnations. When he died in 2011, Apple continued this development the best they could. However the latest iPhones, for all their neat technological marvels, appear to be losing steam to generate sales and revenue for their manufacturer.
Forbes reports that current Apple CEO Tim Cook has already sent alarms ringing as of last week with his announcement that the maker of the iPhone will fall short – by round 10 percent – of its latest quarterly revenue goal. And the reason for that is the very device that helped Apple in reaching its dizzying heights of growth throughout most this decade. The iPhone had once flown off shelves in its earlier generations, until sales reached a plateau by 2015. Apple got around this by increasing the smartphone line’s price, plus selling a wide variety of connective devices and add-on services. It worked, but not for as long as desired.
Another thing that has tripped up Apple in this regard was that China, a market that should have eaten up their latest iPhone models, was expressing a weak demand as consumers there turn away from the heavily pricy device for more affordable and local alternatives. Even before Cook dropped the bombshell about the pale interest in the iPhones XS/Max and XR, Apple stock had begun its gradually accelerating slide, 36% since October 2018 alone. Now it is trying not to lag too far behind old rival Microsoft, which it had eclipsed the previous decade thanks to its many i-products, as well as Google and Amazon.
Tim Cook had already begun inroads at alternative methods by which to arrest this pattern while retaining the current pricing on its latest iPhones. The Consumer Electronics Show this week showed Apple hyping up its ancillary services that are used not just with iPhones but with iPads and Macs. They have even allowed their services like iTunes be made available on other manufacturer’s products like Samsung’s smart TVs. Whether this new approach will stave off eventual catastrophe with Apple’s investors has yet to be determined.
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