Is Apple in trouble?

Apple in trouble, basically no.  This is supported by the New Zealand herald article “today Apple revealed that both revenue and net income posted increases of just over 20 per cent – cause for celebration at most companies, but meagre by Apple standards…The growth was the slowest in more than two years, and failed to meet analyst expectations.” In my opinion Apple is doing fine, they have a great line of products that deliver value to customers.

Perhaps if anything they are suffering because of too much innovation (too many awesome products that define the  categories that they exist in – iPad and iPhone mainly). One thing that maybe slowing purchases right now is that consumers usually a hold off before the release of a new product. The iPhone 5 is likely to be released within the next few months (late October), so consumers who would be buying a new phone are waiting for the next iteration. Furthermore Apple  have had stellar sales results in the last couple of years with sales and of iPhones and iPads something that’s hard to sustain in the long term, however from blog of LukeW we find that “Apple sold 15.5 million iPads last quarter alone (2011). That’s more iPads sold in the last quarter alone than any PC manufacturer sold in their entire line. The iPad is just 2 years old”. In terms of iOS devices 62 million were sold the last quarter of 2011 alone.

Apple is doing fine.

We must also remember that Apple is a single company that researches, develops, manufactures, markets, sells, and distributes its own products. Android is an operating system that was acquired in 2005 by Google (which Google continues to develop and inprove). Google under and open source agreement allows smartphone development companies to use Android to run their mobile phones these brands include Acer, HTC, LG, Samsung, Motorola (acquired by Google last year), Sony, and a range of other handsets.

So is Android in a stronger position, in my opinion not really, particularly the above mentioned companies who use the Android operating system. In my mind there are two issues 1) A future strategy that includes being totally reliant on another companies technology to drive your products is in my opinion short sighted 2) If Google really want to innovate in the mobile space (via Motorola who they recently acquired) in order to gain a competitive advantage they will have to share that with all those who currently use Android.

My the dreams an visions of Steve Jobs continute to live on “Stay hungry, stay foolish”.

Below is are a few links that might may also help to shed some more light on the issue –

http://fora.tv/2012/07/17/Future_of_Apple

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10822094

http://www.asymco.com/

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