If it takes a village to raise a child, then it will take a deity of some sort to save Apple. At least, that’s the impression you might gain from reading a few headlines recently from members of the technorati elite politburo regarding Apple’s future.
On the same day, one of my favorite digital rags ran with Chicken Little ‘The Sky Is Falling!‘ headlines that are not necessarily reflective of reality. Simply put, the PC industry must get ready for extinction, and Apple’s iPhone sales will plummet and iPhone 7 won’t save the company. Yes. It’s that bad out there. How could it not be? Predictive news is all the rage these days.
Real Numbers vs. Ideas
Today’s digital media has competition that was unheard of in traditional media just a few decades ago. Every market of any size had their own daily newspapers and a few TV stations and radio stations. National publications were many, too, each competing one with the other for readers, viewers, and advertising dollars.
Those days are gone. The competition with digital media, mostly free, is intense and content publishers have great difficulty figuring out how to make money. One easy way is to create sensationalist headlines (like mine, of course) which gin up controversy and demand to be clicked.
Adrian Kingsley-Hughes (I never trust anyone with two last names) says iPhone sales are set to plummet:
Apple warned back in January during its quarterly investor call that revenues would be down this quarter – around $50 billion to $53 billion, compared to $58 billion for the year-ago quarter – and since the iPhone is the product that’s responsible for driving much of the company’s revenue and profits, it’s clear where the weakness is going to be.
I don’t know about you, but plummet has an easily understood meaning.
verb (plummets, plummeting, plummeted) [ no obj. ]
fall or drop straight down at high speed: a climber was killed when he plummeted 300 feet down an icy gully.
• decrease rapidly in value or amount: hardware sales plummeted.
1 a steep and rapid fall or drop.
Back in January Apple predicted that revenue would fall from year ago levels, by about 10-percent or so. It always falls this quarter anyway, but since iPhone sales growth has stalled and now is dropping, you can see why the sky is falling.
Wait. No. That’s not right. Does a 10-percent year-over-year drop constitute plummeting? Sales of more than $50-billion in a quarter that normally sees the biggest drop of the year doesn’t seem like Apple is plummeting to the ground does it? Apple’s recent earnings were profits of $13.6-billion even while revenue dropped.
See? The headline and so-called analysis does not match the reality, but it makes for a good, visually attractive, and highly clickable headline.
Elsewhere in the same digital rag the same writer says the PC industry, in a never ending state of glacier-like evolution, bust evolve or face extinction. It will happen within a few years because PC sales are declining thanks to the mobile device revolution; plummeting even; about 10 percent.
PC sales are in freefall, and unless PC makers are willing to start innovating, the problem is going to get a whole lot worse.
Freefall and plummet are about the same, right?
Oh, by the way, the Mac makes up part of the PC industry, and the Mac has been selling well in recent years, and the Mac’s revenue– plus iPad, Watch, iTunes, Apple’s retail stores, the various App Stores and other services which make up a huge chunk of the company’s overall revenue each quarter– must be helping to offset all the plummeting and freefalling going on.
Apple, like the PC industry, is doomed. Only those manufacturers who are not making any money now, despite selling tens of millions of plastic devices each year, are not in need of devine intervention. Seemingly, and assuming the headlines are correct, the end is near and only God can save Apple.