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What to Watch Out For in Apple

March 15, 2014 | About:

Apple (NASDAQ:AAPL) is one such company that’s always been on the headline. The Cupertino also obtains a superb share of media attention. The most gratifying of all is the amount of interest that it receives from its product fanatics. It’s actually unimaginable to think of enthusiasts standing in unending queues for days, travelling from one part of the globe to another, waiting day in day out just to get their hands on an Apple creation.

No other company can boast of such admiration. Apple however has stayed grounded and isn’t resting on its laurels. The company is the face of innovation and makes sure to keep its fans lost in thoughts asking: What’s the next big thing Apple’s coming out with? However, just as there are two sides of a coin, all isn’t well with the maker of iPhone. Let’s first talk in brief about the concerns.

Apple 5S. Source: gsmarena.com

What’s not at its best?
The current quarter could be a bit challenging for Apple. According to a Wedge Partners analyst, the tech company could suffer a softer quarter as there are some weaknesses.

First, the demand for smartphones is slowing, particularly for high-end smartphones. The problem with Apple is that its iPhones belong to the high-end segment. At the moment, low-end smartphone market is an area for growth, but iPhone 5C is also quite costly to target this arena. Apple doesn’t have a product offering for this segment. Now this leads to the next problem the company’s facing.

As the iPhone is a high-end smartphone, it fails to meet the requirement of emerging market. Samsung (SSNLF) is making hay in the absence of an Apple offering for emerging countries. The South Korean phone maker offers handsets for different market segments, and this is precisely why it’s so popular in emerging economies where most keep the costly iPhone at arm’s length.

Another area that didn’t work up to the expectations of the company was its deal with China Mobile (NYSE:CHL). Apple was quite hopeful that its deal with the Chinese telecom giant would lead to huge sales in the Asian economy. But sales haven’t been that solid. In addition, the demand for 5C, which is directed towards emerging economies, is weak and did not see that warm a reception like other Apple products get.

Let’s now get into the positives.

What’s on track?
Innovation and R&D is one thing that Apple never compromises on as the technology giant knows pretty well that this is what sets it apart from the rest. There are huge expectations from the company’s upcoming iPhone 6 which is rumored to have a bigger screen. There have also been speculations about the iTV, and it is said that Apple has an expert team designing it. Other than that the company is also said to be working on the iWatch.

Apple has also come up with its integrated car service CarPlay that would allow drivers to have hands free control on their iPhone while driving their car. This would not only keep drivers connected to their smartphone, but also ensure a safer drive.

The takeaway
Apple CEO Tim Cook promises that the company has some really exciting offerings on the way. All eyes are glued on Apple’s next revolutionary release. Undoubtedly there’s no matching Apple – but sometimes one’s own past glory becomes the biggest impediment. Will Cupertino’s upcoming offerings surpass its own past excellence? May or maybe not. But one thing’s for sure – there won’t be another Apple.

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