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Published June 05th, 2017 by

The Game Changer Going Behind The Game: Is Apple Really Losing Its Magic?

The success of the Apple brand has been phenomenal. It is no secret that they have carved a niche for themselves as one of the most innovative and creative Mobile Communication giants in the world. Their devout fan base and first class mobile app development lends credence to this assertion.

Their success cannot be attributed to the cool gadgets they made alone but the connection established with their customers. This has been unprecedented. Apple made iPhones and used them to change what the world knew as user experience for good! The device was largely responsible for the revolution in the smartphone industry since it was launched in 2007 the 8-year-old device is still flying the flag.

Today, however, it appears the tech giant is fast losing its spark to leading players and key rivals, Microsoft and Google.

Are they losing the Brand Value?

Apple’s co-founder and CEO Steve Jobs built the company into a formidable tech giant with a loyal customer based but sadly, after his demise the company was on the brink of total collapse, no thanks to the falling sales and dwindling reputation.

The imminent “fall” of Apple signaled the rise of Samsung (her Korean counterpart). She grew to become a stronger brand at the time. Although the new CEO Tim Cook tried to walk in Steve’s shoes and maintain his legacy, his feet were obviously too small to fit in. He lacked the creative knowledge and experience of Steve while connecting with the phone users.

The year 2013 spelled doom for Apple. Their shares fell flat, and almost everyone thought it was the end of the road for Apple. Well, as you already know, the brand wasn’t overpowered. They eventually regained recognition for their products.

If she thought the last of her troubles had been heard, then she was in for a big surprise. In the past couple of years, there have been rumors of the company losing its brand equity. Towards the end of 2015, iPhone sales kept growing, slowly. Although the company witnessed a 6% fall in share value, the figures amounted to a lot, because the iPhone is their leading product and its sales from nearly half of the company’s total uues. After the iPhone, comes the iPad, the next most impressive product from Apple. It is responsible for 9% of its total sales revenues. Mac, Apple Music, iTunes Store and other smart devices launched by the company in the recent past followed in that order.

The decline in total revenue of Apple is as a result of the 13% year after year fall in the sale of iPhones to 45.5 million units. Mac sales also dropped by 17% to $5.7 billion in sales.

Why Apple Revenue are declining

The reasons for Falling iPhone Sales are not far-fetched. Users now prefer other devices, such as the Android by Google, Samsung, and other smartphone giants because they provide the same services like the iPhone at an affordable rate.

With Android devices, for example, the hardware variety of Android coupled with features which include multitasking, customization, easy notifications, accessibility, customization, internal space management, default choices, etc. are affecting iPhone’s sales. The app development process and the freedom app developers have is another contributing factor. The fact that app support is limited to Apple app store also resulted in some dissatisfaction among the users. The paradigm now favors the development of Android-powered gadgets and Android app development. While switching to Android, remember that the Apple brand can rightly reinvent itself any day any time.

The True Rationale behind this Decline

The first reason is that wireless carriers are killing off their hardware subsidies, meaning that for the first time, iPhone users are now paying the full cost of their smartphones.

As a result, some of the users prefer not to upgrade their devices for long periods.

The development of Android devices isn’t the only reason for iPhone’s decreasing sales. People still use iPhones despite the influx and popularity of Android devices. They simply do not upgrade. Several iPhone 6 and 6S users are not even looking forward to having new phones. And recently, the massive sales of iPhone 7 and iPhone7 Plus proved that the company is still worth its salt.

Though Apple is trying to establish a leasing program to combat this, she may not be very successful with it because it affects all smartphone designers.

Another reason is that the iPhone 6 and 6 Plus raised the bar for iPhone sales. Shoppers everywhere wanted to own the devices because of their perceived uniqueness and excellent features. But making iPhones Users soon found out that the iPhone 6s and 6s Plus, first of all, feature minor upgrades, and secondly did not follow the success of older devices.

In the early months of 2017, Morgan Stanley believed that Sales of Apple’s iPhone 7 and iPhone 7 Plus smartphones would be lower. Their revenue expectation on the mobile devices family was lowered by about three percent and it is blaming the iPhone 8.

It believes that the low sales of the iPhone 7 will be attributed to the anticipation of the iPhone 8.

iPhone 8S, the tenth-anniversary iPhone will have new features like the AMOLED curved screen, an all-glass construction, and a virtual home button. As a result, many will rather wait until September when the phone will be launched than spending big on other iPhone versions. The problem with this is that many users already have high hopes and expectations of the device. They will expect ‘the new kid on the block’ to be better in every way than the previous phones in terms of Battery life, wireless charging, screen size, user experience, etc. If those are not met, the sales will eventually drop.

Conclusion

Although Apple is still the largest Smartphone company in the world with revenue of $215.639 billion (2016), recent years have witnessed an emergence of competitive products launched by other giants like Google and Microsoft. These giants are giving Apple a good run for their money by creating better and bigger devices. In the midst of all these, the euphoria of iPhone7 especially is still very desirable. The other amazing products like the MacBook, Apple Music, Apple Watch from the company are also making their mark though at a slower pace. At this point, we wonder whether or not this is the end of the road for such an innovative and creative tech company. Well, no one knows. Only time will tell. So, is it the end of an illustrious beginning? Only time can tell that. For now, we will not as yet write them off because they can bounce back when we least expected.

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Melissa Crooks

Melissa Crooks is a Tech Writer and is working with Hyperlink Infosystem, a mobile app development company that holds the best team of skilled and expert Indian app developers. She is a versatile tech writer and loves exploring latest technology trends, entrepreneur and startup column.
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