Sunday, January 27, 2013
Move Over Apple
When you think of smartphones or tablets the first word that comes to mind is Apple. The Iphone, Ipod, and the Ipad. Apple has led the world with these innovations and much more. They were the world's most valuable firm. Now Apple is dealing with bigger problems than trying to innovate a new product. Other firms, such as Samsung, has started to gain traction in the smartphones and tablet industries. This means that Apple is no longer the world's most valuable firm. They have taking huge hits in the stock market after their quarterly earnings report fell flat. Their stock has dropped a dramatic 30% since the new year. This has left Apple to explore other options. There are talks of them getting into the TV markets. Lately, Apple has been doing incremental innovations with only their existing products. This has been hurting them as competitors have been creating brand new devices that are leading the front line. Apple has plans to start making new devices to attract new customers. Also, the death of Steve Jobs also has hurt Apple. I believe that Apple will do fine and will still lead the world in innovative products.
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Apple is an innovative company that has prided itself on an excellent reputation. I agree that Apple's success will continue even with it's recent setbacks. It will be interesting to see how Apple responds in the coming months to a decrease in stock shares. I will be curious to see if they release a cheaper Iphone alike to what they did with the Ipad mini.
ReplyDeleteI also agree that Apple is a very innovative company and will continue to succeed in the industry. I think the whole nation is somewhat looking to see how they respond to the decrease in stocks. If anything, I think Apple will have a way to recover and show continuous progress. Whether it be a cheaper iPhone or another version of an existing product, people will continue to buy into Apple products and watch for the future of technology.
DeleteOne change that i've noticed in Apple is that when the iPhone 5 came out in September 2012 demand for the iPhone 5 set a record and has already surpassed its initial supply when it became available for pre-order. More than 2 million phones were bought in the first 24 hours. That’s double the 1 million in first-day pre-orders for the iPhone 4S and triples IPhone 4 pre-orders. However the company still had a large surplus of the iPhone 4. Companies such as Verizon Wireless started giving an iPhone 4 away for free with a 2 year contract. Apple will continue to be a prosperous stock, everyone can't get enough of their products.
ReplyDeleteIt's very apparent that apple will always be a big competitor in this market but I believe it wont be able to hold on the top place for much longer. The way they made it to the top was with new innovations and new products and if other companies are able to surpass them with their technologies then the top spot will be taken by that company. The world is always looking for the newest and greatest thing and I believe apple wont be able to provide it.
ReplyDeleteFrom the looks of it, I think you were referring to this article:
ReplyDeletehttp://www.economist.com/news/business/21570751-worlds-most-valuable-firm-may-be-past-its-prime-has-apple-peaked
I think you accidentally forgot to include the link. Anyway, I think this is great for consumers, although it will be interesting to see how this affects the GDP and CPI. On one hand, the price of this technology will likely go down because of the increased supply, which may make the economy look bad according to CPI. On the other hand, more of the tech will theoretically be sold, and we will find out a lot about whether this technology has inelastic or elastic demand based on what happens to nominal and real GDP.
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ReplyDeleteApple has seen decline in recent years. At one point its stock value had seen a high of $702.10. It has now dropped to $439.88. A reason for the drop could be that apples premium products are becoming more average to the market. Other companies have the ability and innovations to make products similar to that of Apple. I believe that Apple will have to come out with new products in order to improve there stocks and get back the superior products that they used to have.
ReplyDelete