May 11, 2016

Is Apple on the decline?

Apple continues to make a lot of money, with the iPhone acting as a virtual money printing machine for the company. Still, it seems that the recent lack of innovation has started to catch up with Apple. They make excellent devices, including MacBooks and iPhones, but they are not the cutting edge products they once were. Apple seems to have settled into an era of complacency, producing quality devices that have evolutionary changes from year to year instead of the revolutionary new designs we saw in the first decade of this century. Has Apple lost its magic?
I wouldn't go so far as to say the company is in decline, but it is fair to say that most of their products have been evolutionary for the past few years. There hasn't been anything that really moved the goalposts in the way the iPod, iPhone and iPad all did when they were released. Those were all transformative products, but it's been years since Apple released anything really unique.

This quarter was the 1st in 13 years where Apple had a decrease in its sales numbers. They still made billions of dollars, but this does suggest a softening of demand for Apple products. Apple blames it on the exchange rate harming sales in Hong Kong, and maybe that is the reason. Still, if the company doesn't come out with more innovative products soon, I'll be surprised if there aren't more quarters of declining sales.
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