Apple reporting its highest every quarterly revenue from $54.5 billion a year earlier to $57.6 billion. However the stock fell by more than 8% with shares down to $506 , and this ins spite of Apple rolling out new products last year
But, although the company sold a record number of 51 million iPhones during its latest quarter, it fell short of financial analysts’ expectations of 55 million. So whats the reason of the Thumbs down from wall street ?
The Smartphone market has today turned “ nasty and hyper competitive with ‘margins shrinking everyday, and technology differentiation is not enough to " substitute a brand switch.. with lower prices and smaller PLC ( product lifecycle ) The Life Cycle of a Mobile is hardly 6 months to a year and to top that home grown Mobile Brands are ruling the roost in China and India ( Huawei and Micromax )
The Mobile Revolution is led by Chinese and Indian economies as local brands continue to grow at a brisk pace with, lower technology and cost barrier Apple's iPhone has stopped being inspirational.. as local brands turn out cutting edge technology at a extremely competitive price
The Technology and cost barrier has been broken and Apple is gradually realizing that it needs to grow faster .. but in the smartphone business.. their time is over ..
The 2008 to 2011 smartphone revolution is dead. A company of the size of Apple cannot stick to making smartphones with a premium...Apple cannot compete with a Huawei and Micromax in their own markets ( China and India )
This overdependent on Smartphones has led to the fact that : Apples smartphone business generates generated 56% revenue . with 70% profits
With a zero-growth quarter looming, Apple needs to show it can still innovate