A new report today states as far as Wall Street is concerned, Apple might as well rename itself 'The iPhone Company' as its stock market fortunes rise and fall with the rhythm of the iPhone product cycle: the last surges in its share price coincided with the iPhone 5 and iPhone 6 releases — the big, biennial moments when the handset gets a full makeover, writes the Financial Times. After Apple's earnings this week, everyone in the media has had something to say about Apple missing their quarter. In this brief moment, after a decade of never ending profits to report on, this is what Apple's detractors have been waiting for – a chance to exact their revenge. Our report begins with the latest Financial Times report.
A new report by the Financial Times notes that "In off-years like this, a different narrative takes hold. It runs like this. The smartphone market is maturing fast. As innovation in handsets slows and existing models start to look 'good enough,' users hold on to their phones longer, extending the upgrade cycle (a trend accentuated by the ending of carrier subsidies). And a lack of exciting features in the newest phones opens the way for fast-followers to eat into the premium market with cheaper handsets."
That was made evident today when reviewing IDC's latest smartphone report wherein we were able to see that two new fast-followers (ahem, copycats) rocketed into the top five smartphone vendors in the world almost out of thin air taking out Lenovo and the one-time local favorite Xiaomi.
The Financial Times report went on to note that "No wonder Apple has been trying to change the narrative — primarily by highlighting its surging (and high-margin) services revenues. Yet Wall Street is struggling to see Apple as a services-play. As UBS analyst Steve Milunovich points out, this does not quite capture what the Apple business model is all about.
"But, to fire on all cylinders," writes the Financial Times, "Apple's business needs more hit hardware products to cash in on the value of its burgeoning ecosystem. That means not just persuading more people to buy or upgrade to new iPhones like the upcoming iPhone 7, but eventually getting to them to shell out for an Apple Watch, virtual reality headset, or car, as well."
In the end, the Financial Times report is really no different than most who are now giving advice to the most profitable tech company on the planet. I mean after more than a decade of having to fondle over Apple's earnings quarter in and quarter out they need to vent and pick at everything they possibly can while spitting and hissing to add dramatic effect. Apple needs new hardware. Wow, I didn't see that one coming and I'm sure that Apple's executive team is seriously holding an emergency meeting to explore this new revelation. Yet the Financial Times report was rather mild in their digs against Apple in comparison to others out there in media-land.
Of course the Brits have a way of grinding on a bone like no other and yesterday's report by the Guardian was a classic. The report is titled "A brief guide to everything that's annoying about Apple." Writer Steve Rose must have been working on this story for years patiently waiting for the day that he'd be able to really give it to the fruity California-company across the pond. He ripped into Apple for everything that has annoyed him over the last decade from passwords, to product launches, to iPhone repairs, constant iTunes revamping, the Apple Watch and on and on and on. You could read all about it here.
So here's your chance. After reading the many reports about what went wrong with Apple over the last couple of days, and the Guardian's report in particular, what are your gripes against Apple? What do you see Apple doing that's wrong? C'mon now: get it off your chest; get it out of your system now – because once the profits return, the train will be leaving the station for another decade. So what say you?
About Making Comments on our Site: Patently Apple reserves the right to post, dismiss or edit any comments.