Apple holds a special place in the heart of the masses. Known for its simplicity and amazing innovation, Apple had experienced massive growth for well over a decade. Unfortunately, 1st quarter reporting results have halted the amazing growth that has made Apple the goliath of the tech industry. After the quarterly earnings report was released, their stock price fell 8%, now sitting at around $93 per share. To make matters worse for investors, Billionaire Carl Icahn instantly sold off all his shares of the company, which amounted to over $700 million worth of shares. Icahn claims to have a strong love for the company and its leadership under Tim Cook, but fears of Chinese government intervention with the company was enough to give up his stake. The strained relationship between Apple and China has led their government to shut down iTunes movies and ibooks in the country just this week.
“They went too far in the high end of China,” states Tom Giles of Bloomberg. Their focus on high end Chinese consumers left them vulnerable to competitors whom were willing to slash their phone prices. In the globally saturated market of smartphones, it is extremely difficult to continue growth at the rate at which Apple had for so long; especially when the iPhone drove the most revenue for the company (2/3).
It is time once again for Apple to innovate and deliver a product that consumers can get behind. They have made acquisitions in Virtual Reality and automobile industries, so it will be interesting to see where they direct their innovation. After all, this is what made Apple so great. It’s time they go back to their roots of radical ideas, bringing forth a product that can “Wow” the world. Their brand, its stakeholders, and their loyal customers desperately needs fresh and memorable innovation.
by Estuardo Perez