How One Video Could Bring Down Apple Inc

Remember this?

It came out at the time of the 5S and 5C launches and as David Carnoy of CNET said at the time:

‘Some Apple parody videos are better than others, and the one going viral right now, simply titled “Introducing the iPhone 5S,” ranks a solid 8 out of 10 with some pretty amusing lines.

Some of the better quotes include:

“To create the new iPhone, we started with a design we really loved and…stopped.”

“We have found a way to sell the exact same iPhone a year later…and sell millions.”

“We decided to spend more money on marketing because all the time added up is time…added up.”

“We laid off our whole engineering staff to show how dedicated we are to this new direction.”

All very funny and, as committed BlackBerrians ourselves a good time was had by all.  But then the Apple boys and girls queued in their droves and all seemed well.

Or was it?

Matthias’s video was popular as it hit a very raw nerve. This worked because for the first time Apple fans found they were being openly mocked, not for just having an iPhone but for being conned into buying the same product, over and over again.

And the important thing here is that this notion is not just a ‘my phone is better than yours’ argument, this is something deeper, something entering the public’s zeitgeist.

‘Buying Apple means Apple rip you off you idiot.’

Apple saw this coming, they knew feeling was turning this way, they’ve felt it before and always had the big innovation, gimmick or feature that would keep people saying ‘Yep, I WANT an iPHONE! That’s what iOS7 was all about.

But, in just one example, as reported just today in the UK Metro ‘Apple’s New iOS7 Update Blamed For Lost Battery Power And Other Glitches‘, iOS7 is causing a lot of people a lot of problems and fans will only take so much – just ask all the ex-BlackBerry ones out there…

And a fingerprint scanner? That’s it? Unfortunately with no Steve Jobs around the ideas department seems to be wearing thin.

Now, why could this defeat Apple? One of the mightiest corporations on the planet?

Well, as reported today in the ETF Daily News in a piece entitled Apple Inc. (AAPL): This Should Scare Investors Jay Taylor clearly demonstrates two things,

1) The reliance on Apple Inc on the iPhone with over 50% of the company’s revenue coming from one product

Apple Revenue By Segment
Apple Revenue By Segment

2) The fact that Apple is utterly reliant now on existing customers buying the next iPhone

iPhone Replacement Chart
iPhone Replacement Chart

This chart shows that by 2015 it is expected that OVER 80% of iPhone revenue would be from customers upgrading. That’s an awful lot of eggs in one very fragile basket.

And, as the report says, even more troubling is the fact that it is anticipated that iPhone revenues are expected to flatline in total 2014 – 2015 with no total growth at all.

So, combine a deepening public perception that the product is old hat with an unreliable new OS that was designed to keep old customers locked into the ecosystem but is actually doing the opposite and a significant lack of new customers buying into the brand and you have a very toxic mix – a perfect storm if you like.

And that’s why one video could bring down Apple…

Let’s hope BlackBerry profits on their way back up.


CNET Review
UK Metro
ETF Daily News


Bigglybobblyboo is a legend almost nowhere at all. He is a founder member of UTB and spends his spare time taking out his anger at the world with a fishfork and a spatula. He is also a Cribbage Master, having won 1 fight online as the other guy refused to turn up out of fear for his life.