Is the Apple glow gone?
Tuesday, June 12th, 2012
Perhaps it’s time to ponder how much ammo Apple has left. Sure, the iphone was revolutionary and even to some extent the Ipad but is it enough?. In terms of cutting edge innovation, design, ease of use, Apple currently deserves its accolades at being at the top in the technology sector.
However with the release of IOS 6 recently and with the newest Iphone 5 speculation in October, has the brand reached their peak with the public?. A few years ago the Apple positive 'halo' effect was evident across all their product lines, people would speak about Apple in such smug ways indicative of having the latest Iphone.
Today, the talk about Apple isn’t so enthusiastic although it still has an edge compared to its competitors. Innovation is a two way sword; a public can reward you for releasing an innovative product but at the same time despise you if you execute this badly (ala Microsoft). It is a risk and strategy which many companies do not pursue but rather ‘jump in’ if they see a competitor being successful. Apple has been rewarded with its products in recent years for innovating and executing their product design and performance above the competition.
However like a public bored with an outdated fad, Apple is reaching a point with its Iphone products that consumers are beginning to suspect that future editions are no longer worth upgrading. Siri , FB integration changes and other tweaks will not be enough to some. Over time unless serious innovation that customers want is released, their Iphone will become encroached by its competitors with customers no longer willing to pay a premium or wait for its release.
Let’s look at history, we all remember IBM and the IBM/compatible, what is the difference? One was a knock (*cough* Android), but all in all was a cheaper version of the same product. Eventually Apple could reach that point where consumers are totally happy with their mobile and no longer care about extra features.
Expectations for the Iphone 5 are high, extremely high. Consumer sentiment for the brand will require something extraordinary to be released. It could prevail, however consumer expectation is so high now above its competitors that it has a lot to fall. Then again Apple has surprised us before...
Article by James Jones
The views expressed are the subjective opinion of the article's author and not of FinancialAdvisory.com
Tags: apple , iphone 5
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