Apple Might Not Be as Bulletproof as Some Think: 10 Reasons Why
iPhone 5 Demand in China
Apple launched the iPhone 5 in China and already there are reports of things not going so well for the company. In fact, many stores at the end of the day still had some stock available. That could be due to Apple only offering the iPhone 5 on China Unicom and China Telecom, and not China Mobile, the world’s largest carrier, but it might have something to do with China’s consumers increasingly opting for Android. China is extremely important. And right now, Apple isn’t as popular in that country as it would like to be.
Look at iOS Market Share
During the third quarter, Android’s worldwide market share hit 75 percent across the smartphone space. During the same quarter last year, that market share was about 59 percent. That’s extremely bad news for Apple as it tries to keep growing in the mobile market and attract developers.
The Professionals Are Upset
Apple at one point needed pro users and graphic designers to help it achieve some success. However, over the last two years, Apple has not released a new Mac Pro, leaving those pro users to complain that the company has forgotten about them. What’s worse, Apple hasn’t said anything to allay their fears. If Apple loses the pro users, it could lose a boatload of evangelists who were instrumental in getting the company back on its feet.
What Will Replace the iPod?
Although the iPhone and iPad are selling like gangbusters, Apple’s iPod sales are down. Apple CEO Tim Cook is not making a big deal out of that, but eventually, the iPod will fall to a level that’ll force Apple to discontinue it. But there’s an issue with that: the iPod still generates billions of dollars each year for Apple. Losing that revenue won’t make shareholders happy.
Consider Samsung’s Success
Samsung is the only company in the mobile market right now that has been able to overcome the Apple juggernaut. The company’s Galaxy S III is selling extremely well, and is widely considered an even better handset than the iPhone 5. For once, Apple has met its match in the hardware market—and it’s not clear how it will respond.
Tablet Seems to Be Following Smartphones
After Apple launched the iPhone in 2007, it rapidly grew to a dominating position in the smartphone market in North America. But over time, it started to lose more and more ground to Android-based devices. Judging by recent market share figures, it appears that the same issue will occur in the tablet space. Apple’s mobile hemorrhaging might not be showing up as an issue on its income statement today, but as the market matures, that will be a huge problem it’ll need to address.
The Maps Kerfuffle
Apple’s Maps issue showed that the company is not perfect. In fact, it proved that Apple can make really bad decisions and then move adroitly to redress them. Right now, Maps is still a mess. This has frustrated iPhone 5 owners and allowed Google to score points with owners by introducing Google Maps for iOS. This situation can’t be overlooked when examining Apple’s broader market appeal.
Foxconn Is a Major Concern
Although Foxconn is not owned by Apple, it’s a major partner. And earlier this year, the company was found to have underpaid and overworked some of its employees in facilities where it produces Apple products. That has made Apple look bad. Although the company says it’s going to ensure Foxconn complies, some consumers are a bit concerned with its relationship with the manufacturer.
Google Is Encroaching on Apple’s Territory
Google was once just a search company that Apple didn’t need to worry about. But now, the company is a huge concern. Google’s Android platform is dominant in the mobile market, the search company’s AdMob is beating Apple’s iAd advertising platform Now Google is getting into hardware with its Nexus 7 and Nexus 10. Is Google the next Apple in the mobile market?
Executive Shakeups Are Never a Good Thing
Apple recently announced that two senior vice presidents, Scott Forstall and John Browett, had left the company. In addition, Apple modified its executive lineup to give designer Jonathan Ive more control over software. Apple has called the move a positive one for its company. However, executive shakeups are never a good thing and can often indicate some dissension in the ranks. Is that happening at Apple?