As Jasmine’s blog which is about the Buzz of iPhone7, the future of APPLE is not bright as before.Oct 25, 2016, Apple announced financial results. For the first time in 15 years, ever since it rebuilt on a strategy to be the leader in mobile products, full year sales declined.
http://media.idownloadblog.com/wp-content/uploads/2016/10/q4-2016.png (IMAGE IS TOO UNCLEAR WHEN IT WAS INSERTED, PLZ CLICK ON)[1]
Apple’s value took a huge hit because stagnating sales of iPhone caused the company to completely lose its growth story. From the prediction of chip suppliers of Apple, the order for Apple in 2017 will decline to 80%, (the number of first quarter in 2017 will reduce to 35000 thousands).[1]
All of the information show that people‘s enthusiasm of iPhone is decreasing. The profit structure of high dependency on iPhone would finally leads to the decay of Apple, since the decreasing of iPhone is unavoidable due to the market saturation of smartphone .
As the symbol of innovation, iPhone and Apple are losing the advantages of their differentiation strategy.[2]
- As we learned from COMM101, being different is the key strategy for sustainable development.[1] At the beginning, Apple was well-done. Minimalism design of the product, IOS system and unique ecosystem of accessories, which are the reason why iPhone could be the leading enterprise in the market. It not only bring them the profit on sustainable development of charging from Apple Store, but also bring them the high brand value. iPhone becomes a symbol.
- However, the smartphone market is near saturation and customers are disappointed on Apple. Many of phone companies are approaching to the same innovative ideas. They all cannot find a new direction, so that they catch up Apple in the way of following the trend. In this environment, being special is far harder than before. At this moment, innovating and “changing the world” as Steve Jobs said are too hard. Now, appearance of recent versions of iPhone are approaching to the same and the hardware is lacking significant upgrade, the decrease of intensity of innovation results customers’ leaves.
Now, companies are upgrading on products’ hardware to improve the practicality of products. However, changing the ideology of cell phone and create a new style would be the only way of innovation, such like the things like wrist-worn smartphones, phones with bendable screens, curved screens and transparent phones. The products can completely change the way we interact with our technology would be the new leader in the future. It might be something we even can’t image what it is. The innovation from the higher level of the appearance of the phone could bring Apple power to stand on the top of the world again.
Benson, Thor. “10 Awesome Smartphone Concepts That May Never Exist.” 13 Nov. 2013. Web. 23 Jan. 2014.
Overall, after the iPhone touches to the ceiling of growing , the crisis of Apple is seems on the way.
If Apple can’t meet customers’ expectation on the way of innovation and find a product to replace the position of iPhone in the company, world would never mention phones in the way of “iPhone and others” and think about a fruit rather than a tech company when they mention the word “apple”. Apple would eventually fall into the mundane world.
[1]”Apple IPhone Sales 2007-2016 | Statistic.” Statista. N.p., n.d. Web. 29 Oct. 2016.
[2] Concept of differentiation strategy