Thursday, September 13, 2012

Apple Inc. (NASDAQ:AAPL) Hits Middle-Age, Stop Expecting Much

Nobody wants to admit it but the disappointment is palpable. All the hype, anticipation, leaks, boiled down to a larger screen, a more powerful processor, 4G capability and a few other things added here and there.

That is the Apple Inc. (NASDAQ:AAPL)’s so called “iPhone 5” for you.

Newsweek's Dan Lyons wrote a piece just before the launch of the iPhone 5, which has become even more relevant now on hindsight and we have actually seen the phone.

"Is this really the best we can expect from an outfit that claims to be the most innovative company in the world? This is the sixth version of the iPhone and the user interface still looks almost exactly like the original iPhone in 2007,' said Lyons, who wrote for BBC.

"Now, having had two years to plot and scheme, Apple's renowned designer Jonathan Ive has replaced the tiny 3.5in (8.9cm) screen with a slightly-less-tiny 4in (10.2cm) screen? Wow. Knock me over with a feather. What do you do with the rest of your time, Jony?"

Truly. However the basic design of the screen remains the same - an oblong device with rounded edges, which the company has patented and is hotly disputing any rip-offs from anyone else.

According to Lyons, Apple, surprisingly, spends very little on research and development compared to companies such as Microsoft and Google. It spends only 2 percent of its revenues on R&D while Google and Microsoft have allocated about 14 percent of their revenues to it.

"No wonder the Android platform, where new models appear every week, now represents 68% of the smartphone market, up from 47 percent a year ago, while Apple slid to 17 percent over the same period."

There's a reason why Android phones are the largest selling smartphones in the world - at four times that of Apple.

"Worse, despite all its bluster about innovation, Apple has become a copycat, and not even a good one. Why is Apple making the iPhone bigger? To keep up with the top Android phones."

Apple seems to be dong the very thing that it is accusing its rivals of doing - copying their ideas and designs.

"Apple also has become a copycat in tablets. Jobs once said the iPad's 9.7in screen was the perfect size, and smaller tablets made no sense. Then the Android camp had success with 7in tablets like Amazon's Kindle Fire and Google's Nexus 7, and now Apple supposedly will announce its own smaller iPad in October. Talk about thinking different!"

"Apple got where it was by taking bold risks. Now it has become a company that copies others and plays it safe."

Middle creeps up on you before you are aware of it. That's when you slow down and stick to the safe, tried-and-tested formulas.

Apple seems to have reached that stage. Now the event by Apple is no more exciting as it was used to in presence our beloved Steve Jobs. I wonder, if Steve was there today, he would have something to please the market. What do you think? Should we stop hyping Apple’s products and concentrate more on their tradition features.

Nevertheless, shares of AAPL ended 1.39% higher at near $670 on Wednesday.


  1. What a complete load of bullshit

  2. 1. Name a phone that has user interface friendly enough for all ages? Why re-invent it when it's already the best? Apple only needs to refine it.

    2. 18% thinner, 20% lighter, 12% less volume. How is it bigger?

    3. Design is not just how it looks and feels. Design is how it works. - Steve Jobs. If an opened system works, Apple will use it.
    If a closed system works, Apple will use it. Same with the screen size. Apple feels a taller but not wider screen works.

    4. Toyota makes 40times more cars than Mercedes. So? Android phones now has four times all sorts of phones than iPhone. Again, So?

    5. There is a difference between plays it safe and stick with what works and refine the minor imperfections.

    6. Stupid companies creates a new industry and let its competitors harvest the fruits. Smart companies creates a new industry, harvest as much as possible until it's saturated and creates another industry. What's the rush to make a game changing thing again so fast for Apple when there is still rooms for improvements in iPhone and the new smart phone industry Apple has created?

    1. Thank you for your comments, I agree with You 100%. Or as my friend says "what He said"

  3. It's funny, you said Android now represents 68% of the smartphone market, while Apple slid to 17% over the same period. Lets have the figures for each manufacturer of Android products compared to Apple shall we? You can't compare an operating system to a device, or manufacturer, you have to either compare the devices with each other, or the operating systems with each other.
    I think if you compare iPhones numbers with the numbers of Samsung Galaxy S3's I think you'll find the percentage goes back in Apple's favour.

  4. the writer must work for Samsung.

  5. Actually there are some good points here. Apple is harvesting and that makes perfect sense. Disappoints anyone looking for sustained "breakthrough" innovation but Apple is now in the top position. Why would you make some be deviations at this point?

    Apple still has a long way to go to saturate the market. They need time to get it done. New incremental models like the iPhone 5 and iPad 3 help it along.

  6. Android may have 68% of the market, but Apple has most of the profit.


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