Thursday23 March 2023

Where is Apple To Go After the iPhone 5?

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For about the last four months we have been talking about the decline of Apple. We are not saying that they are going to die, or go bankrupt or anything like that, but we are saying that they are no longer going to be the company that they once were. There are many reasons for this that we have covered including a lack of real innovation, a closed eco system, and one of the biggest ones; Tim Cook as CEO. To many this one may come as a surprise, but it is not that much of one really. Tim Cook is a businessman first and foremost. He was the one that proposed moving production and warehousing outside the US. He also has been instrumental in making other very business oriented decisions. However, while Tim Cook is good at running the day-to-day operations of a company, he is not the guy you want in charge at a place like Apple.

Simply put, Cook does not have the strength of personality that Jobs did or even the vision. He is the guy you go to when you want the best deal on parts or the best place to make something. People will be begin to see this over time as Cook cannot maintain the same control and distortion field that Steve Jobs could. Of course there is more to this than that. You have the multiple law suits where Apple is bragging about how much they innovate, yet when a brand new product hits the market it is little more than an incremental update with features that many other phones have had for years. There is also a new and growing counter culture that are quick to point out that Apple has not brought much new to the market for the last few years. This is the same market that originally made Apple so popular (the 15-25 crowd), but now they poke fun at how closed the iPhone is while using their Android phones. This is the “anonymous” generation and they resent the level of control that Apple forces on their products.

On top of that Apple, as the darling of the “mainstream” media gets put in the spotlight for everything they do. Because of this people are starting to see the vast amount of litigation they have going on around the word over trivial items that should not be protected under a patent in the first place. They are also seeing these new patents as they are filed which makes things even worse. Two patents that are in the news today are one that mimics Face Lock from Android and one that is a copy of existing motion based inductive charging systems already on the market. Yet here Apple is claiming they create all of this technology in a bubble while blatantly copying other people’s inventions. Yes, people are starting to notice. Apple is going to find it harder and harder to maintain the illusions and to perpetuate their mythology as time moves on.  

Beyond these items consumers are starting to feel that they can get the same thing (maybe a little faster) for less money if they go with someone else’s product. This is not market confusion (as Apple would like some to believe), but it is economics. Apple still wants to demand a premium price for their hardware based on claims of superior hardware, manufacturing and software. However, the public now knows that Apple products are made in a factory in China that also makes Dell and a few others. They know that the hardware is bought from companies like Elpida, Micron, Samsung etc… you know the same hardware that is in the competition like Asus, Samsung, Motorola yet these products are considerably less expensive. Apple’s exclusive eco system is fading as more developers write for both Android and iOS. There will be people that will continue to buy Apple products some because they just like them, others out of blind loyalty and still more that are tied to Apple because of a large investment in apps and music from iTunes. Make no mistake though Tim Cook as the guy in charge will not be enough to keep Apple on top, they will start to falter and probably sooner than many think.

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Last modified on Thursday, 20 September 2012 22:09

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