Four Reasons Why Apple Is in More Trouble Than You Think

[OhioChick]

Published: Thursday, 13 Jun 2013 | 10:26 AM ET

Apple's decline has been well-documented. One need only look at a stock chart, which shows that shares of Apple have lost more than a third of their value in nine months. Or one could look at the number of Google searches for "Apple," which peaked with the stock in September 2012 and have since dropped precipitously.

1. Privacy Concerns Could Disproportionately Hurt Apple

Privacy concerns raised by the NSA phone records revelations could be more troubling to people using Apple products and services than those using those of other companies, Wolff said.

2. Apple's Tax Issues Could Become a Problem

"Every progressivey person that is upset that corporations don't pay taxes has an Apple," Wolff said. "And at the end of their email or text message about how horrible it is that companies don't pay their taxes, it says, 'By the way, this message was sent from the biggest tax cheat in American history.'"

3. Google's Chrome and Android Integration

Wolff notes that Google is working to integrate its Chrome and Android platforms, and this could end up being a major concern to Apple.

4. The Education Battle

"One of the next big fights is going to be education spending," Wolff said. "If I'm a school system, I can buying an entire classroom [of students] these Google devices, or I can buy two of them the Apple stuff."

More: http://www.cnbc.com/id/100812961

[Sherman A1]

1. Well,

If it's from CNBC I take it all with a grain of salt.

They may indeed be in trouble, but this is not a source I would consider informed or trustworthy.

[onehandle]

2. By the number.

1. Apple was last on the NSA tech company chart. It will be interesting to hear the story of their resistance.

2. Yep. Their tax dodging sucks. But Google, Microsoft, Dell, etc practice the same tricks. Nothing will come of this.

3. Microsoft's Internet Explorer and Windows integration will DESTROY Apple... Heh...

4. iPads are the fastest growing tech in education and will be until at least 2019.

[ChromeFoundry]

3. ...A few more reasons

5. They are not on the edge of announcing anything 'new'.

The iPhone 5S is a distraction to fool people into believing that it is a better product than the Samsung Galaxy. iPad Mini... now really!?!?

6. They have announced that they will build less expensive iPhones in the future.

This is clearly an admission that their products are over priced and they realize that some of the sheep from the herd have jumped ship.

7. Apple has lost their ability to spur innovation in an increasingly crowded market place.

They may have market share today, but how are they going to keep it? Kids don't even think they are the 'cool' thing anymore.

8. The market is continually lowering expectations for Apple's growth, their profitability is dropping almost as fast as their stock price.

Objects in motion will stay in motion unless acted upon by a force that is greater. Without innovation and new products the company will eventually auger itself into the ground.

[onehandle]

4. More numbers.

5. There is no such thing as the iPhone 5S

6. They have not.

7. Still making shit up. And iProducts are in the top spaces on kids' want lists.

8. Wall Street has been caught red handed downgrading their stock, so that they can profit down the road. Apple is a 'buy' on analysts books.

[OhioChick]

5. Actually, #7 isn't quite accurate

Is Apple's iPhone No Longer Cool To Teens?

On the sliding scale of coolness, teens place most adults firmly on the uncool side. It goes without saying that no teen wants to show up dressed identically as the science teacher.

And unfortunately for Apple, this teen logic may also apply to smartphones. They don’t want to same device as their mom, dentist, and coffee barista. They want the latest, greatest phone that speaks to their generation. Samsung’s Galaxy and Microsoft’s Surface have recently introduced new and never-before-seen devices, whereas the first iPhone came out in 2007 (though new models are released each year).

Also working against Apple’s iPhone is the popular parent tradition to give their teens the old model when they upgrade their devices. Samsung and Android devices are less expensive, which makes it more likely that parents are willing to buy a new one for the teens, versus handing them a new iPhone. “There was quite some negative buzz about the iPhone 5 and the lack of a real incremental innovation, except for the screen size and weight, when compared to the 4S. So this has an effect on the originality component of coolness,” says Insites-Consulting’s Joeri Van den Bergh.

Ultimately, in the eyes of today’s youth, massive popularity has watered down Apple’s coolness. “Teens are telling us Apple is done,” says Tina Wells of the youth marketing agency Buzz Marketing Group. “Apple has done a great job of embracing Gen X and older [Millennials], but I don’t think they are connecting with Millennial kids. [They’re] all about Surface tablets/laptops and Galaxy.”

More: http://www.forbes.com/sites/larissafaw/2013/01/09/is-apples-iphone-no-longer-cool-to-teens/

On a side note, my kids used to love their iPhones. Now, they can't wait until their contract is up to get an Android. (They're trying to pawn their iShit off on me!)

[onehandle]

6. Yeah. Apple hasn't sold a thing to kids since that article was written late last year.

Apple's Going Down!!!! ...since 1984...

lol...

[OhioChick]

7. Maybe in your world

Last edited Thu Jun 13, 2013, 01:54 PM - Edit history (1)

On edit to add: The article is from this year.

[onehandle]

8. Apple has more than twice as many employees in the U.S. as Google...

...and has spurred the creation of over half a million jobs with their 'iEconomy.'

Dunno why you would want Apple to fail.

[OhioChick]

12. Just sick of the greedy ass corporations

Apple gets no free pass from me just because they're all doing it!1!!

[onehandle]

14. You're all giddy over your kids 'wanting' Androids.

Google is the number one Congress briber... I mean tech lobbyist, by a factor of 10x.

[OhioChick]

16. I'm not "giddy" in the least

Only stating what they wanted instead of Apple products.

[ChromeFoundry]

11. More diversions...

5. If they don't announce a 5S then there will not be a new iPhone until the 6 is released in late 2014.
- like I stated. NO 'new' products.

6. Um, yes they are...
http://www.cnn.com/2013/06/13/tech/mobile/apple-bigger-iphone/index.html

7. Still wearing blinders and standing in your own shit?...
Who’s Winning, iOS or Android? All the Numbers, All in One Place
http://techland.time.com/2013/04/16/ios-vs-android/

8. Go ahead an buy if you believe that... Hope you get a raise to cover your losses.
APPL:
Growth Est
Current Quarter : -21.40%
Next Quarter : -4.70%
This Year : -10.30%

Industry:
Growth Est
Current Quarter : -2.40%
Next Quarter : 23.20%
This Year : -3.20%

APPL's 52-week chart looks great as a ski slope.

[onehandle]

13. You get your info from Mashable and Harry McCracken?

You might as well watch cat videos on youtube and get their opinions.

[ChromeFoundry]

19. the source was actually Reuters

I see you are attempting that diversion tactic again... Funny how up until today I always respected you, even when I mostly disagreed with your opinions on Apple. I love a good debate, but it quite clear that you are not up for the task. You are just rude and a cry baby when someone puts down Apple. It sure would be refreshing if someone actually had that much passion about something that actually matters.

The nice thing about this thread is that you are not the OP and cannot make a snarky-ass comment then lock it by deleting the OP.

...But do feel free to make the statement that you are putting me on your ignore list, again, or you can actually super-glue those blinders to your temples. As for me, you will never be on my ignore list. You are too damn entertaining, like a kid at Toys-R-Us. Hey.. isn't it about time for you to complain about the bullies picking on you in the ATA forum after you can no longer come up with anything insulting to say to anyone that disagrees with you?

[onehandle]

21. Breaking News!

[OhioChick]

23. You're rude

I've always posted negative OP's on all tech companies throughout my years here on DU, not only Apple. I believe they're all greedy ass corporations.

If Apple were accused of killing kittens, you'd find some rationale for it, while bashing everyone on the thread. (Like "everyone else does it, too.&quot

If you're going to bash every negative comment on this thread, why not at least include some links for your assertions and try to debate instead of belittle everyone.

Oh, and BTW, no need to post more pictures of your new Camaro. Those have grown old, so I've heard. I'm not jealous, I have one, too.

[Skittles]

25. don't bother with Apple whores, OhioChick

it's like talking to one of the Groupies

[bobalew]

26. May not be a "5S" but something like it.

and Chromebooks are ~ $250.00.
Parents, Not the kids hold the purse strings, and the possesion of $ or lack thereof, RULES.
Wall Street Yanks & Tanks EVERY Bouyant Hi- tech company. Apple has lost >50% of its value from its near or past $900 peak....
They are going to have to step up once a again & WOW us. Jobs the jerk is gone, and I don't think Cook can be nearly as sales sociopathic as he was. They are travelling "Onward Thur the Fog", at this point.
When they finally find another "Jobs" then they might rebound up to the heady heights they once were. I doubt it. They are developing corporate sluggishness, like they did in the Skulley days...

[n2doc]

9. Apple's biggest issue is smartphone saturation

Their huge growth has been built on phone and tablets. However, Google has "microsoft-ed" them, building a software operating system mimic that they sell to anyone who builds the hardware. . It is eerily similar to the situation with the original mac and Windows.

To grow more will require another blockbuster product. Otherwise, they get to look forward to increased competition from cheaper or just plain different mimics. That doesn't increase their market.

[onehandle]

10. They don't need to increase their market. The iPhone 5 is the world's best selling smartphone.

Google will be there to fill in the 'free smartphone with a cheap suit' market.

Let them have it.

Google hasn't made a Dime off of Android.

[n2doc]

15. Maybe not, but have you compared their stocks lately?

The issue in the business world is- how will they move forward? Apple isn't going away. But progress needs to continue, or else the iPhone might go the way of the blackberry and become a niche product in the next decade. I remember in 2006 RIM ruled the nascent smartphone world.

[onehandle]

17. Apple has ruled the portable music player market since 2001.

And they've expanded that market into phones, tablets, and living rooms.

There was six years between the iPod and the iPhone. The iPad has barely been out for three.

Everyone who thinks they are 'overdue' needs to look at the timeline.

Since the iPod, there have been Two Technology Disruptions in the marketplace. The iPhone and The iPad. Absolutely nothing else by anyone else. Nobody is creating Anything New, because they are waiting to see what Apple is doing... so they can copy it.

[cascadiance]

18. Also, Android is a more open platform too... Apple had this problem with their OS many years back..

... when they moved to OSX that was based on UNIX instead of their old hobbled and limited OS that wasn't going anywhere to grow their marketplace at all then. Moving to OSX also helped get many people like me to move off of Windows for a basic desktop that were looking for a more open operating system like UNIX with a lot of consumer applications. Linux was starting then, but never really has been a peer to Windows or OSX in getting consumer apps on it.

I think Apple needs to rethink it's more closed architecture on their mobile platforms as well, or something like Android partnered with Google will overtake them. Many consumers don't like being tied to AT&T as a service provider as well like they have been a lot from the initial offering of the IPhone.

[onehandle]

20. 99.9% Of New Mobile Malware Targets Android Phones

That's what 'open' gets you.

http://www.securelist.com/en/analysis/204792292/IT_Threat_Evolution_Q1_2013#12


And Android is Google... And all the major providers have iPhones now...

[cascadiance]

22. Though in the PC market more malware targets PCs than Macs...

... even though PC has a more closed architecture than the UNIX-based OSX Mac.

I think part of that is that it is harder for just one company to make sure all of its holes are closed from abusive intrusion when it is a closed architecture like MS Windows, whereas more people can examine and fix more open source software like those of UNIX to make it more resistant to abuse, and also more quickly fixed if it does get attacked.

I think the youth of the mobile market that hasn't allowed either Mac's IOS or Android to be that mature yet perhaps contributes to Android perhaps getting hacked more (and that it is deployed on many more platforms, some of which might expose more holes in it than others). I'm guessing over time that Android platform will stabilize more and this will be less of a problem, but probably too early to tell yet.

[dawg]

24. It has become "cool" in the business world to bash Apple.

Two years ago, they were praising them to the sky. Back when they were fanning the euphoria that led Apple's share price to $700. People who listened to them and bought in at that price are in a world of hurt right now.

But the thing to remember about Apple is that they have never tried to be dominant player in their markets in terms of market share. Dell probably sells way more PC's than Apple sells Mac's, but Apple makes much fatter margins. Their loyal customer base, locked-in ecosystem, and overall reputation for quality, reliability, and trouble-free use, enable them to make more profit per unit than any of their competitors.

Rather than pushing to sell the most units, Apple has sought to make the most profits, and their share of worldwide smartphone profits is still the dominant share despite android device makers moving many more units.

I know Apple hasn't had a truly innovative new product since the iPad, and that debuted waaaay back in 2010. But what has Microsoft done for us lately? The new XBox has some cool features, but it also has some awful ones which have enraged their hardcore gamer customer base. Windows and Office are just new tweaks on the same basic products they were selling in the 1990'.s

Google does a lot of cool stuff. But there is room for both Android and iOS, just as there was still room for Apple in the Wintel world.

If I were a cynical man, I would suspect that the torrent of anti-Apple business op-eds were part of an agenda to drive the stock price even lower so hedge funds could get back into Apple at bargain basement levels and then ride it back up again. But business journalists would never attempt to push a stock price up or down, so it can't be that.

[bobalew]

27. Your last statement rings quite true. I believe that

being a Cynic is closest to reality...
The deal is, though , it appears that hedge funds make more on the way down(PUTS), than they do on the way up, and manipulate stocks that are basically bouyant, in order to do so. The rampant use of Naked Short sales, and the lack of any oversight or regulation pretty much guarantees, that Apple will continue to suffer and suffer until they squeeze that last drop of equity from it.