Apple could be a route to replicating the same mistakes it made in 2018 which ultimately led to a 10 percent stock price plunge on January 4.
According to a report released at The Wall Street Journal, Apple is planning to release three iPhone models in 201[ads1]9. The problem is that many loyal customers of Apple are not compiled to upgrade to newer models because of the strong performance and specifications of previous models.
Is Apple in Trouble?
Apple has not officially disclosed its plans to release three new models in 2019. But, if it does pursue the development of new iPhone models, following a lackluster reception of the iPhone XS and XR, it may spell trouble for the already struggling $ 720 billion giant.
This week, Chinese retailers have started selling the iPhone XR model with a 17.1 percent discount, slashing its price from $ 1,036 to $ 858, due to a lack of demand newly released iPhone models
While Tim Cook, the CEO of Apple, attributed the company's poor performance in the fourth quarter of 2018 to the potential tension between China and the US, analysts have said that the trade war and the decline of The Chinese economy had minimal impact on the sales of the iPhone.
Rather, local analysts have reported that demand for cheaper alternatives such as Huawei that match the specifications of the iPhone has started to increase rapidly. In previous years, its ability to revolutionize design and technologies in mobile phones was the manufacture of next-generation smartphones. As the growth curve of the mobile phone sector plateaued, it has become challenging for mobile phone manufacturers to differentiate newer models from previous models and consumers. As a prestigious Japanese institution Waseda University professor Atsushi Osanai said:
What we because from Apple is something that makes us emotional, even unconsciously — say, truly beautiful and sophisticated design that we can't resist. Beefing up functional value, like expanding camera features, is not all that is exactly the same thing. ”
Immediately after the public letter of Tim Cook was released on January 2, The Verge social network columnist Casey Newton also added that as mobile phone companies reach in technological development and the level of innovation companies can employ year after year declines, the desire for consumers to purchase new models on a yearly basis will naturally drop.
in five that I did not upgrade my iPhone. Two reasons: – iPhone X really, really good, and battery life is great – The 2018 models were functionally identical to the iPhone X, ”Newton said
Not Exclusive to Apple
Samsung, LG and many major mobile phone manufacturers are struggling to deal with the same problem with Apple, and as competition in the likes of Huawei and Oppo continue to emerge at providing better value for money to consumers, key players in the mobile phone market could risk seeing a decline in dominance.
Featured Image from Shutterstock. Price Charts from TradingView.