Color me a certified Mac user since the last century; since a time and place on the space time continuum where Apple and the Mac were mostly synonymous. What a difference a century and a few new products can make.
Apple went from being the Mac to a company of iPod, iTunes, and iTunes Music Store; and a few hundred million customers who owned Windows PCs and didn’t have a clue about the Mac. What happened with the iPod Halo Effect?
Mac sales before and after Steve Jobs died in 2011 were on a steady incline toward new records thanks to the Halo Effect; whereby a few hundred million iPod customers found the Mac at Apple Stores, and many hundreds of iPhone and iPad customers helped to push the Mac’s sales to all time highs.
That was then and this is now and the Halo Effect may still exist, but it isn’t working the way it did just a few years ago. Why? Stagnation. Apple’s iPhone sales are in decline, and that means fewer new customers to be enticed to the Mac. iPad sales, while on the rebound, are not what they were just a few years ago, so, again, less of a Halo Effect than ever, hence Mac sales are going nowhere fast.
Apple’s well integrated product line– Mac, iPhone, iPad, Watch, Beats headphones, software– all work well together and create an unrivaled ecosystem for the privileged technology customer.
Growth. At 1.5-billion devices in the wild and well over 1-billion customers, Apple does not seem to have the urgency to grow the customer base with new products as it did under Steve Jobs. Apple has five major revenue streams, perhaps unrivaled by most competitors not named Samsung, but the latest to make the Top 5 List tells the tale.
iPhone is tops. For now. Services is the fastest growing and comes in a distant second. Then, in tight order, the Mac, Wearables and Accessories, and iPad. All combine to make Apple an enormously profitable techno-gadget machine, but the latest also says the Halo Effect is more Breed Different™ than Apple of the recent past. New customers are not being driven to buy more of Apple’s other products. Those days are gone. Instead, Apple is making more new products for the same customer base. Apple Watch, AirPods, Beats headphones– all accessories for iPhone.
See the problem? Apple needs massive hardware sales from new products to create the Halo Effect or risk becoming a company that relies only on the customer base it has now.
The Halo Effect is gone.