NEWS ANALYSIS: Apple could be in for trouble this year, as there are signs that iPhone demand is waning and its mobile market share slide is starting to slide.
Apple has succeeded beyond anyone’s expectations over the last several years. Due mainly to the popularity of its iPhone, as well as its ability to drive current customers to more of its products, Apple’s revenue and profit have soared.
Meanwhile, the company’s stock price hit new heights last fall, making it the world’s most successful firm. Best of all for Apple, the company has more than $100 billion in cash on hand, making it incredibly rich.
However, Apple’s streak of good fortune might come to a close in 2013. A recent report suggested that iPhone 5 demand is actually on the decline, forcing Apple to cut its component orders in half. Apple is also watching its smartphone competitors start to make inroads on its market share. Simply put, things might not go as well in 2013 as the company might have hoped.
Don’t believe it? Take a look at the following reasons Apple might have a bad 2013
1. iPhone 5 demand is reportedly waning
According to reports out of China, Apple has reduced its orders for certain iPhone 5 components because of weaker-than-expected demand. Apple has not confirmed that’s the case, but now several reports have confirmed it is. That’s bad news for Apple.
2. Apple doesn’t see Samsung as a reliable business partner
Apple relies too heavily on Samsung
, and the company knows it. According to recent reports, Apple is trying to work with Taiwan Semiconductor, so it can offload its processor production to that company. However, Apple likely won’t be able to do so for several years. In the meantime, Apple will be paying its chief competitor billions of dollars for the right to build its own products. That’s not a good thing.
3. The cases won’t go anywhere
Apple isn’t expected to settle any of its major lawsuits this year. In fact, it’s quite possible Apple will increase the number of patent cases it's fighting with Samsung and others around the world. The trouble is, those cases cost money. It’s always possible Apple will suffer costly losses in this field. It would be nice to see Apple shed its lawsuits in 2013, but it seems awfully unlikely.
4. iOS market share is shrinking
Apple’s iOS platform is on the decline
. Yes, more iOS-based products are shipping than ever, but Android now owns the lion’s share of the mobile space. Over the next several months, Android is expected to gain even more share. By the end of 2013, Apple might find itself competing in the mobile space with a relatively small market share.