The Overall Problem At Apple Inc. Is A Declining Iphone

1283 WordsApr 9, 20176 Pages
The overall problem at Apple Inc. is a declining iPhone growth problem due to decreasing market share and lack of innovation. The company has hit a stagnant point and continues to lose overall market share to its competitors while trying to recover and come up with the next big product. Shares of Apple have been stagnant over the past two years despite successful profits, a fast-growing dividend, and over $130 billion worth of share repurchases. The staple product, the Apple iPhone, accounts for the bulk of Apple 's revenue and profits and has suffered from slumping sales for consecutive quarters. The launch of the iPhone 7 was unable to reverse that trend. The 2016 Q4 numbers show $46.9 billion quarterly revenue and quarterly net income…show more content…
Samsung and Apple both lost market share to up and coming Chinese manufacturers Huawei and Oppo, both of which saw an increase in their shares year over year. Currently, the iPhone market share is decreasing in China, the world 's second-largest economy after the U.S. Apple 's declining market share in China is also due to iPhone users holding onto their handsets longer and postponing upgrades. All products go through a lifecycle of birth, growth, and decline. Apple has already been through this cycle with at least two products. Currently, Apple has no backup to replace its vanguard iPhone product. The competing Huawei P9 phone compares extremely well against the iPhone 7 and cost 30 percent cheaper than iPhone. In addition, cheaper android phones that offer everything the iPhone does and sometimes more at fraction of the price are also gaining market share rapidly. Marketing For the first time in more than a decade, Apple reported a yearly decline in quarterly revenue. This can be attributed to Apple’s recent marketing efforts. Apple’s advertising efforts once challenged consumer behavior and thus drove sales. The agency focused on portraying Apple 's story in a meaningful and emotional way that connected with target consumers. It focused on telling a story through the product rather focusing on the products

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