The New Year brought an explosion of speculation with how iPhone sales were performed, but the bombshell was dropped by the Wall Street Journal. It reported month-old news: Apple halved orders for iPhone 5 screens and other components.
Now that Apple is about to announce its quarterly earnings, Wall Street analysts have lined up to give their best shot at predicting iPhone sales. Sure, I'm interested in the numbers, as they reflect demand and how the market responds to Apple's product, but personally I'am more interested in something else: what will Apple's next move be?
Looking back at the past decade, we can see Apple's earnings have shown an upwards trend, which is good, but today we can see its growth has slowed, as analysts expect the first drop in profits for the holiday quarter.
Some argue Apple needs a new and innovative product to maintain growth, some say -- even former Apple executive, John Sculley -- it's time to switch marketing and focus on emerging markets. After the spit fire on the already hot cheaper, low-cost iPhone, rumors began circulating around the blogosphere at the beginning of the year.
Others blur the Steve Jobs myth, saying Apple came up with a new and innovative product each quarter while he was CEO. The reality looks different, as there were three years between the iMac and iPod, and six before the iPhone came out. Then three years before the introduction of the iPad. And one more thing: Apple was working on the iPad project well before the iPhone, but because the market seemed ready for the iPhone first -- and they struck a deal with AT&T -- they proceeded with the iPhone.
In other words, stay cool, because Apple isn't rushing anything out of its door – not until everybody involved agrees it's ready.
Now, there are voices Apple's core market is shrinking and it's time for the company to face reality: it was nice, boys, but you had luck. To be honest, I can't agree with them, simply because Apple is renowned for how much it spends on research and development. Take a look at the patents the company gets approved from UPSTO.
So, what if Apple doesn't decide to renew its iPhone line this year and launch a redesigned but improved device? The demand for the recent device was so high, it could hardly keep up with it. Does this mean they can stop innovating? Absolutely not. What I mean is, the process is slow – very slow – because it comes with the certainty that you receive the best product and service for what you pay.
So, do iPhone sales matter? Yes, but more important is what device the Apple product map includes in the future.Contact Us for News Tips, Corrections and Feedback