Apple are one of the world’s largest, most profitable and financially successful companies. The competition has been heating up in the last six months however especially from Samsung and Google.
UBS Analyst Steve Milunovich has sent out an email to clients which read ‘Identity Crisis: Can Apple Play Defense?’. He analysed how Apple will have to adapt to deal with the change.
He said “Apple historically has played the role of underdog, beginning with its niche Mac status after losing out to Windows. The iPhone and iPad are the first times Apple has had a leadership position drawing significant and competent competition.”
The point Milunovich wanted to make is that he wasn’t sure if Apple could play ‘defense’ in the coming year.
He added “It doesn’t appear to be in Apple’s DNA to cover market spaces just to get revenue. Yet now that the company is so large due to iPhone success, investors are clamoring for product expansion with larger as well as lower-priced phones with Android gaining favor.”
Investors and analysts are wanting Apple to release products in the lower price markets, with cheap TV’s and iPhone products. Milunovich ended his letter by saying that he felt the engineers and designers at Apple needed to get creative. He ended saying that we shouldn’t expect too much from Apple, too soon.
The spotlight has hit Tim Cook, who took over the position of Apple CEO when iconic Steve Jobs died from cancer. As time is passing, the influence of Jobs is weakening, especially in regards to product approval and development. Can Cook deliver the goods over the next 5 years? We will have to wait and see.
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