Apple are worried.
As we reported here: How One Video Could Bring Down Apple Inc Apple Inc are utterly reliant on two things:
1) iPhone sales. The iPhone now makes up over 50% of the entire company’s revenue. That’s not healthy.
2) Existing customers upgrading – it is expected that by 2015 over 80% of iPhone revenue will come from existing customers. And they aint buying enough.
Now, talk to an iPhonian and they will say ‘WHAT? ARE YOU MAD? They’ve just had record sales you idiot!‘ but as we showed in our recent piece Samsung ‘Pins Profit Hopes On New Galaxy S5’ (itself turning into something of a disaster) it’s not about how many you sell, it’s how many you NEED to sell.
And along comes a new report from Digital Trends.
This shows how the once stellar iPhone growth is confiming our earlier suspicions – it just isn’t happening anymore. A fact born out on the ground by the shortest queues (yup, they were there but nothing like before) for a new iPhone yet with the 5S and 5C.
And born out even further – for a company now totally reliant on their existing customers upgrading – by the following paragraph:
‘Looking back at the most recent numbers, Apple sold 51 million iPhones from Q4 (Oct. – Dec.) 2013. That is impressive, but it’s less so when you compare it to the 48 million iPhones Apple sold a year prior. It’s year over year growth for this period was 7 percent, the lowest it’s ever been by a lot. And it’s not an anomaly either. Holiday sales growth of the iPhone has slowed dramatically in the last two years.
From 2007 to 2011, iPhone sales doubled every holiday season, more or less. A new iPhone meant way more sales, but that’s no longer the case. In 2012 that growth fell by two thirds, and even with two iPhones in 2013, it all fell again by another two thirds.’
And here’s the worst bit.
Apple have no idea what to do about it.
During the recent Apple vs Samsung trial some internal slides came to light.
Would you feel confident with these?
Remember, all 3 slides here are INTERNAL APPLE DOCUMENTS. It’s THEY who admit the good times are over. Not us at UTB. And it’s THEY who say ‘customers want what we don’t have’. Not us.
So, as Digital Trends concludes, here’s the problem for Apple.
Do they cut their prices or remain a premium product?
It would seem their business plan does not allow them to cut prices so…
If they stay a premium product they need to innovate like never before.
And that’s just not happening.
Unless they pull one almighty rabbit out of an almighty hat Apple have nowhere to go but a downward spiral from here.
And without Steve Jobs?
Meanwhile BlackBerry is quietly starting again.
With a strategy that will work, believe me…
John is just riding the punches right now.
Roll on the Z3.
Source: Full article here: iPhones Growth Has Peaked And Apple Has Nowhere To Go But Down – Digital Trends