Over the last decade, major leaps have been made in technology. In my opinion, Apple has been a long-time front runner, as their innovative designs have become increasingly popular as new devices were introduced. I appreciate that Apple makes easy-to-use devices and the modern design is what draws in consumers such as myself. They have been extremely successful in their marketing strategies as they have played a significant role in Apple’s success as a company. The brand name has become a global phenomenon, but with popularity comes an increased price as Apple products are in such high demand. Purchasing an Apple product has become somewhat like buying a Chanel purse: expensive, well-recognized, but (is becoming) impractical.
With Apple’s recent release of the iPhone 6, iPhone 6 Plus, and the Apple Watch, I have started to question what is in store for the future of the company. Especially with the release of new products in such a short time span, I find it tough to keep up with what the company keeps releasing. The Economist suggests that price is becoming a concern for some consumers. The average selling price of the iPhone is $609 and competitor prices are $249 worldwide. The Apple watch is priced at $349 and “unlikely to be a serious competitor to other expensive watches”. While the watches are “supposed to help the firm expand into new areas”, is Apple thinking in the right direction? It is said that Apple is thinking outside of the box in inventions such as a mobile wallet (a tap of the watch instead of use of credit cards), but I wonder if Apple is possibly thinking too far outside of the box…in another dimension. Apple has been losing shares to Samsung and Xiaomi and is becoming a “niche player”. With a decline of revenue in the iPhone and iPad in 2014, I question whether Apple products will soon become unnecessary accessories just for “techies”.
Apple’s business model appeals to the mass market, specifically those able to spend more on their technology. To be fair, I would say that the majority of apple’s customer segments are willing to purchase just about anything at any price. They have been successful in creating a dedicated, loyal consumer market. However, I am starting to question the role I play as a consumer.
In my opinion, Apple has become a very different company that is trying to refocus on different products. I believe it needs to continue having a competitive edge, but it should realize that its refocusing may drive consumers away. Consumers and investors may need a clear path drawn out as to where Apple is trying to lead consumers in their new direction. If I were an investor, I would be wary of the company’s known secrecy; as a consumer of Apple products, I am finding myself not wanting to buy their newest products as many features do not appeal to me whatsoever. While I admire their simplicity and aesthetic appeal, I worry that I will soon not want to buy any Apple products; in that case, I will have a difficult time finding a substitute.
More than Hardware photo: http://www.economist.com/news/business/21616967-apple-becoming-very-different-company-and-not-just-because-its-newly-unveiled
Cover Photo: http://www.returnofkings.com/31224/rotten-apple-inc-poisons-cultures