The heights where Apple is building its palace
will never let you to think about its downfall ever, but this does not means that can never happen. As for last few weeks there are some news popping up from different sites that indicate the downfall of the fruit company. Few days back E-NET also informed about the company’s fall. But this time we are we are loaded with 10 reasons which show the fall of Apple. Til the time we won’t read them you won’t be believe, so read on to see the weaklings of the most successful tech company of the world.
The Decline Of Apple
1. Decreasing Quality Increasing Price
Previously Apple’s products were satisfying the amount being paid for them but now the case is not the same. As the recent release of the company, iPhone 5, the product has a sky touching price but there are a lot of complains being received about it such as the touch screen bug, purple haze and above all the most prominent one is the
Apple map issue. All these reasons make the customers think that now Apple is not providing that quality in its products, as the high expectations we have for them. Furthermore, the Apple device which was said to be a cheaper one, that is iPad mini, was also quite expensive when compared to its competitors. Decreasing quality with increasing price can be a major reason leading to the fall of Apple.
2. Internal Defects Of The Company
Apple used to be more organised previously with stronger agendas to present best to its customers, but now there seem to be some internal defects in the company and one of the biggest evidence was the Foxconn issue, a major supplier of electronic components to large US companies including Apple and Microsoft.
3. Magical Touch Of Steve Jobs Is Missing
Apple is still Apple but the company has lost its spark today, Steve Jobs, who was not only the co-founder of the company but also the sole leader. Without his single vision, the company seem to be a bit scattered with internal disagreements and power struggles. Not only the company but people are also missing the compelling speech of Jobs when he used to hold the stage.
4. Apple’s Limitation On The Product
The next thing that can contribute to this downfall is the fact that Apple always bound its customers, while other brands open a new world for their users. As Android and Microsoft allow their customers to use almost all the apps such as Excel that Apple doesn’t. Apple only allows its customers to those features which are under the company’s control, which was seen when Apple replaced Google’s map with Apple’s poor quality map.
5. Other Brands With Same Products But Lower Price
Increasing competition is another threat for the fruit company that might lead to the fall of Apple, as yesterday Maypalo updated you about Samsung’s victory upon Apple. Moreover, the features that iPad mini is providing are also available in Nexus 7 of Google but in lower price. Thus the improvement of other brands is also a disadvantage for Apple.
6. Apple’s Carrier Partners Have Better Alternatives
Now the sixth one in the list of 10 reasons which show the fall of Apple is an important one. As other brands especially Samsung’s products are acquiring more success, so the carrier partners are also more interested in them than Apple. Because for them better alternative means more profit.
7. New Initiatives Not Interested With Apple
Apple’s potential buisness partners don’t really trust the fruit company and this is major reason due to which new initiatives are not really interested to work with Apple. The music industry and AT&T have not had great experiences with Apple. If, in this way, all the Apple partners started to leave the company and new initiatives show no special interest, then the company will surely face a decline.
8. Product cannibalization
Apple’s rapid speed of releasing new products can also be disadvantageous for the company, as this leads to cannibalization. This means that due to the release of new products the older one suffers. This was vividly seen after the release of iPad mini that how rapidly the sales of iPad 3 went down.
9. Growth From All Aspects Is Not Advantageous
As per the analysts, its not always advantageous for the company to expand too much. Apple has also expanded a lot and presented its customers all technical goods from smart phone to TV. TV is complex due to relationships with cable companies, set-top box manufacturers and channel guide programmers. And if we talk about integrating more complex solution for TVs with content, cable companies and other media partners have learned not to trust Apple.
10. Valuation
If we mention Apple’s stock on P/E basis then it seems be quite cheap but is very expensive on price/sales (4.4x) and total absolute market capitalization basis ($625 billion). Even now Apple is suffering from a surprising yet swift decline in stock value. Just weeks after reaching a $705 high, it now sits at its lowest price in over five months. This can be another reason that lead to the fall of Apple.
This fall of Apple may not be very vivid, but the small weaknesses of the company can lead to this huge disaster to happen.
Will Apple face a downfall or not? What do think?
