By the looks of it, it seems like the bell has tolled for Apple. At least, that's the picture painted by many market watchers, media outlets, and tech industry insiders. But is Apple actually going to go the way of Nokia? To put it simply, no.
Despite slow iPhone sales and investor panic after it revised its revenue guidance, the company is far from its deathbed. Continue reading to learn the 5 Main Reasons Why Apple Won't Die Anytime Soon.
Apple Has a Backup Plan
Slower smartphone sales aren’t just an Apple problem. The entire smartphone market is saturated and sales across the globe are becoming stagnant or declining. Because of that, it bodes well that Apple has other ventures.
While iPhone sales are down, Apple’s Services business is booming. That includes anything from the App Store to Apple Music. Some analysts predict that Services will overtake the iPhone as Apple’s primary growth driver in the next few years.
Apple CEO Tim Cook even teased that “more services” are coming this year. That will likely include an original TV content streaming and Apple News with magazine content subscriptions.
iPhone Sales Do Better After Big Years
There’s a precedent to suggest that Apple’s slowdown in iPhone sales isn’t altogether out of the ordinary, especially amid a slumping global smartphone market. Basically, it has to do with the fact that this is an “S” year.”
Per past Apple sales data, the Cupertino tech giant usually does well in the twelve months after a major iPhone release. Think iPhone 5, iPhone 6 or iPhone X. That’s why 2015 was a record year for iPhone sales (thanks to the iPhone 6), but 2016 wasn’t.
The iPhone X was a groundbreaking iPhone, but the iPhone XS lineup is much less so. But based on Apple’s past release schedule, it’s looking like a major release year is just around the corner.
Innovative New Hardware Is in The Works
Sure, iPhones have largely been responsible for Apple’s success since they first debuted. And we may not see a “must-have” iPhone until the first Apple 5G handsets roll out in 2020. But there are plenty of other hardware products in Apple’s lineup that market analysts and investors aren’t taking into account.
For example, Apple is undoubtedly still working on first-party augmented reality glasses and self-driving car technology — both technologies that have yet to boom. That’s not to mention other products like new AirPods, Macs, cheaper HomePods, and first-party over-ear headphones.
There’s also evidence that Apple will do more of this itself. The company has been making moves over the past few years to bring its chipmaking in-house — including rumors that it’ll switch to first-party processors for the 2020 Mac.
Apple Still Has a Ton of Cash
Apple’s stock price has taken a hit over the past few months, but many people probably forget just how much cash the company is still sitting on. As of the most recent quarter, Apple has a war chest of about $237.1 billion (or $122.6 billion minus debut).
With all that money in its coffers, Apple can do a lot. That’s a lot of cash that the Cupertino tech giant can spend on acquisitions or research & development — two things that it is actively doing. The company has a lot of flexibility because of it.
That war chest could allow it to enter into industries that it hasn’t touched, like automobiles or original TV shows and films. And those are just the two areas in which the company is already researching technology.
There Will Always Be a Market for Apple Hardware
It may sound pointless to even say, but it’s still worth noting. Apple is still Apple. Many consumers prefer Apple products for a variety of reasons, and unless those tastes change drastically, there will always be a market for iPhones and other Apple hardware.
Just think of all of the reasons people choose iPhones: the usability and simplicity of Apple platforms, Apple’s commitment to privacy, the fact that iPhones are much faster than competing handsets. There are many other reasons people choose Apple; these are just a few of them.
Apple is also taking steps that are undoubtedly more pro-consumer. Releasing an iOS update that significantly boosts the performance of older devices puts an damper on planned obsolesce conspiracy theories, and proves that Apple isn’t neglecting its customers.