Take politics. Puhleeze. Over and over we hear from a red or blue politician what they will do to make the country better than ever. What we never hear is the “How?‘ Every time you hear a promise from candidate or surrogate, ask, “How?” Apple has a problem that needs to be fixed? Ask, “How?”
Compare And Contrast
When technology writers and market analysts diss on Apple they do so singularly, and seldom do a simple compare and contrast with other makers. So, let me do a little of that for you. It’s really rather simple. Here’s the first example, and it comes from noted contrarian Adrian Kingsley-Hughes who appears to know everything there is to know about the technology industry where Apple lives.
Apple is down. Shame on Apple.
You could rename Apple “The iPhone Company” because the company’s fortunes are tied to the success of this product.
That’s not really true. Apple was a profitable Mac maker and still is, what with 60-percent of the entire PC industry’s profits nowadays. Oh, and Apple was profitable with the iPod. Profitable with iTunes. Profitable with Apple Stores– all long before it became The iPhone Company.
iPhone makes up a big chunk of Apple in the 21st century but everything else Apple sells makes money hands over fist so there’s that.
Problem is, the iPhone isn’t selling as well as it once was, and the iPhone 7 might not be able to drag the company back into revenue growth.
Fair enough. But where’s the comparison? What other technology company is experiencing heady growth these days? Lenovo? Nope. Samsung? Nope. Google? Not on hardware. Microsoft? Surface has started to sell but Apple sells more Macs anyway. HP? Dell? Acer? None of them talk much about their moribund PC businesses.
What about all the other smartphone manufacturers? How do they compare to Apple’s sliding iPhone business? Well, none of them are profitable and they don’t release numbers so it’s hard to compare, right?
The first problem is China. Currently interest in the iPhone 7 is waning in China, with users who were “very likely” or ‘somewhat likely” to buy an iPhone falling. This is a big deal given that China is a market that Apple is relying on to push the iPhone into revenue growth.
How does that situation compare with Apple’s competitors in China? What say you, Mr. Kingsley-Hughes? Mr. Kingsley-Hughes? Hello? Is this mic on?
Kingsley-Hughes ignored my question and proceeded to pour out some drivel on supply and demand balance as being a critical issue. As it is every year for a few months after a new iPhone is released, and an issue that has nothing to do with the topic– growth.
This is quite a critical issue because limited supply of Plus handsets puts a downward pressure on the average selling price, and, in turn, the revenue that Apple pulls in from the iPhone. It could also push people to buy something like a Galaxy S7 Edge or a Pixel XL.
Uh huh. Poppycock. Samsung’s Firesale 2016 hasn’t helped the company pick up Apple’s slack. In fact, it’s the other way around. Where can you see a Google Pixel XL? Yes, Google will sell millions of Pixels. About as many each month as Apple sells iPhones every day.
Ongoing reports of problems not only dampen enthusiasm for the iPhone 7, but also get people looking elsewhere for new phones (or sticking with that they have).
This is really, really bad for Apple because no other smartphone manufacturer has a problem with their new models, right? Right? Amirite?
Somehow in Kingsley-Hughes’ mind Apple has a boatload of iPhone 7 problems which somehow inhibit growth but fails to compare any similar smartphone manufacturer and their problems which inhibit growth (not many smartphone makers are growing these days because saturation).
Sadly, none of the nit picking issues he raised are major issues that dampen iPhone’s sales or growth. Maybe this malaise has something to do with the smartphone saturation being experienced almost everywhere. Maybe the drop in sales has something to do with iPhones that last longer and longer than competitors. Maybe the sales slowdown has something to do with something but nobody knows exactly what it is so it’s touch to come up with a solution.
That’s because a list of nit-picking items is much easer, faster to type out, and there’s none of that extra effort needed to come up with insightful analysis on the overall situation.
Oh, and there’s this little tidbit from last week. You know about the smartphone industry’s profits, right? Thanks to Samsung’s recent Galaxy fire sales, Apple owns them all. All. 104-percent.
How are all those other smartphone companies growing and destroying Apple’s iPhone business if they don’t make any money to help fund future manufacturing and growth.
Where’s the analysis of that?