Apple's biggest threat is itself.
When people hope Apple will do something a lot of the fans like to say "Apple should do X and just use their force everyone to go along." But, the problem is, because Apple has done that in the past, companies aren't exactly thrilled about it any more. And they are losing momentum. And many of these claims are in emerging markets or markets where Apple isn't dominant by any means.
The reality is, Apple isn't some unstoppable force. And the fact that Apple forced themselves on the phone industry the way that they did has made them a lot of enemies. Carriers might still be controlling updates on all phones and SIM cards might not exist. That these things have changed is great for consumers. But they have turned the mobile landscape into a very cutthroat one with very little profit to be gained by anyone except Apple.
There is another huge problem. Apple tried the same strategy again already... and failed. Apple Pay is getting nowhere on Apple's clout alone. Its competitors have successfully stopped it from being ubiquitous even in Apple's home country. It may eventually become ubiquitous but, if Apple's influence was unquestionable, it would have started off that way. They couldn't strong arm either the retailers or other payment processing companies.
This has shown all other industries that Apple can be hampered if not stopped entirely and that there is no reason to cow to their pressure. Apple Pay was a strategic failure. Had it won, it would have helped cemented the mentality they gained from their victory in mobile. I'm not sure why Apple thought that banks and credit holders would be a good target for this gamble. It wouldn't have truly revolutionized anything even if successful. But it was also doomed from the beginning. Lenders write great contracts and many retailers and lenders were still stuck in existing contracts at the launch of Apple Pay.
Apple Watch was a categorical failure. Sure, they are "winning" the smart watch wars. Whatever that means. Aside from outselling everyone else, the sales aren't actually all that impressive. Estimates peg them at selling between 2M and 5M a quarter. To put that in perspective, they sell between 40M and 80M iPhones a quarter and iPhones are only 20+% of the phone market. That's between 5-10% of all eligible owners which means less than 1-2% of the overall population.
Apple Watch has shown industries that not everything they do will cause an explosion of sales.
Apple TV is a competitive failure. At least Apple Watch dominates a pathetically small market. Apple TV is outsold by its competitors. This shows people that Apple products aren't even guaranteed to dominate in a given segment.
The final blow is slowing iPhone sales. We all KNOW that sales can't accelerate indefinitely and even perpetual growth is difficult if not impossible to maintain. But iPhone sales have been on a positive trajectory so long that many analysts had a hard time accepting that this reality could apply to Apple's golden goose. Now that they are faltering, people accept that Apple can actually fail.
Apple is doing EXTREMELY well as a company. But, time has shown that in the end Apple is every bit as fallible as any other company. There are no markets in which they have absolute dominance any more. And they have shown that they can fail. There is really no need therefore that anyone should feel pressured by Apple into making an undesirable deal.
Apple does have MASSIVE hoards of cash, a strong brand and a loyal consumer base. So, while Apple may not be able to bully people around any more, it should be noted that they still have more bargaining power than pretty much anyone they might want to do business with. If they are willing and able to make the right deals there is probably little which they can't accomplish. But don't assume that they can force their way wherever they want any more and don't assume that the things you hope they will bring you are easily bartered for.
They have made many enemies and over time have shown their true colors and shown that they have weaknesses. What Apple needs to do is simple; deflate their ego. The markets they are currently in are reaching or are at the saturation point and everyone knows that the incumbents can control them in existing markets. After Apple Watch they can no longer gamble on trying to create new markets either. One weak product in a new(ish) market just feeds the trolls but does nothing to hurt the company long term. A second consecutive one will start to tarnish their brand.
With what Apple does have, the only thing that can really hurt them is themselves. Another failed ego trip could do a lot to the company.
The reality is, Apple isn't some unstoppable force. And the fact that Apple forced themselves on the phone industry the way that they did has made them a lot of enemies. Carriers might still be controlling updates on all phones and SIM cards might not exist. That these things have changed is great for consumers. But they have turned the mobile landscape into a very cutthroat one with very little profit to be gained by anyone except Apple.
There is another huge problem. Apple tried the same strategy again already... and failed. Apple Pay is getting nowhere on Apple's clout alone. Its competitors have successfully stopped it from being ubiquitous even in Apple's home country. It may eventually become ubiquitous but, if Apple's influence was unquestionable, it would have started off that way. They couldn't strong arm either the retailers or other payment processing companies.
This has shown all other industries that Apple can be hampered if not stopped entirely and that there is no reason to cow to their pressure. Apple Pay was a strategic failure. Had it won, it would have helped cemented the mentality they gained from their victory in mobile. I'm not sure why Apple thought that banks and credit holders would be a good target for this gamble. It wouldn't have truly revolutionized anything even if successful. But it was also doomed from the beginning. Lenders write great contracts and many retailers and lenders were still stuck in existing contracts at the launch of Apple Pay.
Apple Watch was a categorical failure. Sure, they are "winning" the smart watch wars. Whatever that means. Aside from outselling everyone else, the sales aren't actually all that impressive. Estimates peg them at selling between 2M and 5M a quarter. To put that in perspective, they sell between 40M and 80M iPhones a quarter and iPhones are only 20+% of the phone market. That's between 5-10% of all eligible owners which means less than 1-2% of the overall population.
Apple Watch has shown industries that not everything they do will cause an explosion of sales.
Apple TV is a competitive failure. At least Apple Watch dominates a pathetically small market. Apple TV is outsold by its competitors. This shows people that Apple products aren't even guaranteed to dominate in a given segment.
The final blow is slowing iPhone sales. We all KNOW that sales can't accelerate indefinitely and even perpetual growth is difficult if not impossible to maintain. But iPhone sales have been on a positive trajectory so long that many analysts had a hard time accepting that this reality could apply to Apple's golden goose. Now that they are faltering, people accept that Apple can actually fail.
Apple is doing EXTREMELY well as a company. But, time has shown that in the end Apple is every bit as fallible as any other company. There are no markets in which they have absolute dominance any more. And they have shown that they can fail. There is really no need therefore that anyone should feel pressured by Apple into making an undesirable deal.
Apple does have MASSIVE hoards of cash, a strong brand and a loyal consumer base. So, while Apple may not be able to bully people around any more, it should be noted that they still have more bargaining power than pretty much anyone they might want to do business with. If they are willing and able to make the right deals there is probably little which they can't accomplish. But don't assume that they can force their way wherever they want any more and don't assume that the things you hope they will bring you are easily bartered for.
They have made many enemies and over time have shown their true colors and shown that they have weaknesses. What Apple needs to do is simple; deflate their ego. The markets they are currently in are reaching or are at the saturation point and everyone knows that the incumbents can control them in existing markets. After Apple Watch they can no longer gamble on trying to create new markets either. One weak product in a new(ish) market just feeds the trolls but does nothing to hurt the company long term. A second consecutive one will start to tarnish their brand.
With what Apple does have, the only thing that can really hurt them is themselves. Another failed ego trip could do a lot to the company.
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