Is the Apple Honeymoon over?

by Jeff Wiener on December 20, 2012

It lasted a long time by market standards, but it looks like the honeymoon Wall Street has had with Apple since the latter first rocked the tech world back in 2007 with the release of the original iPhone is finally coming to an end. While it remains to be seen if Apple’s recent market struggles are simply a blip for this even keeled high earner or whether it signifies a stronger downward trend, it’s clear for the time being at least, Apple is no longer the darling of the stock market world.

The latest snub for the Cupertino company came this week when Citibank downgraded the company’s stock from ‘buy’ to ‘neutral,’ at least partial evidence that less people are salivating over the notion of getting a piece of the Apple pie.

But what is the reasoning behind this growing discontent with Apple? It turns out, as our writers here at TheTelecomblog have predicted several times over the years, that not only have Apple’s products started to lose their lustre, but the company’s own products are starting to compete against each other, meaning less revenue overall for Apple.

While many have voiced concerns that Apple’s market reign is finally coming to an end, I will say at the outset that this is all likely much ado about nothing, given that Apple’s stock price has hit several lulls over the past years, always buoyed by a new product or a holiday buying season.

But that said, rumours are swirling that Apple’s overall revenues are taking a significant hit following the combined release of the iPad Mini and iPad 4. As one writer here wrote, “customers are flocking to the smaller, cheaper iPad, and while that’s undoubtedly directing revenues to Apple that would have otherwise gone to Google or Amazon, it has also taken the thunder out of its larger iPad 4 brother, leaving the latest iteration of the company’s larger (and more lucrative) tablet collecting dust on the shelves.”

It’s this loss of revenue from the once mighty iPad series that stands to hurt Apple the most, and the problem for the Cupertino giant is that the market has recognized this problem early and is getting the word out. Couple this with the fact that Apple’s shares have dropped almost 25 percent over this past year, and perhaps we’re seeing the end of an era.

But before everyone starts lining up to put nails in Apple’s coffin, the company reportedly will once again see a big boost from the release of Apple TV early in 2013, a technology, some analysts predict, will catapult Apple back up to the lofty heights of the consumer technology market.

In the end one thing is clear; Apple no longer can rest on its laurels if it hopes to retain its dominant spot in the technology market. While the iPhone 5 impressed many, it didn’t impress enough, and while the iPad Mini has been a hit, it’s come at the expense of the company’s traditional 10-inch tablet dominance. What the company needs in the New Year is true innovation, something new, fresh, and most importantly, original.

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Blackberry Blasts Apple for Lack of Innovation — TheTelecomBlog.com
March 20, 2013 at 5:35 am

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