Feb 032019
 

Apple’s stockprice has taken a bit of a tumble just recently, prompted by a statement from them indicating that they’ve made a bit of a mess of the iPhone releases and they’re not selling as many as they expected.

Foolish scaremongers are predicting the demise of Apple. Over a few bad quarters? That’s just ridiculous.

If anything (and you fancy a gamble), now is probably a good time to buy shares in Apple, because they are not going away any time soon. And they will probably come up with an answer to what they are doing wrong.

So what are they doing wrong?

Too Few Products

It may seem a bit strange to say considering just how many different iPhones you can buy, but what I am really talking about here are product types rather than individual variations. After all whether you are buying an iPhone X, XS, XS Max, or XR, you’re still buying an iPhone.

Just take a look at the Apple web site navigation bar :-

Each of those (with the possible exception of a particular keen Mac user of the “Mac” group, and of course “Music”) is a product that a person is only likely to have one of.

And keeping the number of products you sell small makes you more vulnerable to the occasional “miss”. Which with the best planning in the world will happen from time to time.

Just imagine what is missing :-

  1. The Apple HiFi
  2. The Apple alarm clock.
  3. The Apple home/small office network server.
  4. The Apple power-line ethernet adaptor.
  5. The Apple WiFi access point.
  6. The Apple air pollution monitor/smoke detector.

And that’s just a few items thought up by an individual on a lazy Sunday afternoon.

Don’t Ignore The Fringe Fanatics

For many years, Apple survived by making products well suited to the audio/visual creator community. And yet looking through the Mac line-up, there is nothing there suited to the real power user.

And yet Apple has fans who still want to run macOS – either compromising on their needs by getting an iMac Pro (usually with huge piles of non-Apple external disks) or by getting an ordinary PC and running macOS on it.

Give them what they want, and no a promise to release a proper Mac Pro “someday” isn’t sufficient.

There may not be a great deal of profit in it, but a small profit is better than none. And catering to power users may well have a greater effect than you suppose – they are or can be influencers. Imagine every photographer, videographer, and sound engineer saying “Forget about Windows; get yourself a Mac”.

Because that’s what they used to say.

Too Expensive

If you ask anyone if they would like more features, the answer is almost always yes, but they can become more reluctant if you ask them to pay a little more money for those features.

And if you ask them to pay more for features they are not interested in, they’ll rapidly lose interest if money is tight and their old phone is ‘good enough’.

And that is what has happened, the latest iPhone has more and better features than any previous iPhone but the price has crept up. For many (including the affluent “middle-class”) it has become a significant purchase rather than something that can be paid off with 2-4 months of minor inconvenience.

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