Apple: The business of evolution

Is Apple still capable of real innovation?

Every year, the Boston Consulting Group determines a ranking of the 50 most innovative companies in the world. Apple has topped this list without interruption since 2005. It is questionable whether the group will also land in first place in 2016 - there are increasingly frequent voices claiming that Apple's innovative power is being lost.

Apple undoubtedly reached the peak of its innovative power in 2007, when it revolutionized the mobile communications industry with the first iPhone. Today, the iPhone still accounts for around two-thirds of the company's sales. The problem, however, is that the smartphone market is saturated except in a few countries. Chinese brands like Xiaomi are entering the markets with increasingly powerful devices and offer their smartphones at a fraction of the price of an iPhone.

Few innovations

Meanwhile, Apple was content with comparatively minor innovations on its phones in 2015. The most noticeable new feature is 3D Touch: In addition to the universally known gestures like swiping and tapping, the phone also recognizes the pressure with which these movements are performed and reacts accordingly. It is to be expected that future iPads will also get a kind of right mouse button through this technology.

In addition to the iPhone 6s equipped with this feature, Apple introduced the iPad Pro, an oversized iPad that can be operated with a stylus, at the last keynote on September 9, 2015. At first glance, this doesn't seem to be a sign of innovative power - Steve Jobs described the stylus as a discontinued model when he presented the first iPhone. Why does Apple now offer one for its latest iPad? Because the competition from Microsoft and Samsung is having great success with it. That is not exactly a sign of true innovation.

Is Apple's time as an innovation leader over?

In business terms, it's no secret that the success of innovative companies comes in cycles. First and foremost, there is a new technology. If this is turned into a successful product, the company rides the wave of success of shares in exness fx for a while. Then come the imitators: they replicate the functions and offer an equivalent product at a lower price. In this way, a function becomes mainstream and, in the worst case, the original innovator rests on his success. According to critical analysts, this is precisely the case with Apple. The company is making the same mistake as Windows shortly before Apple took over at the beginning of the current millennium.

Ironically, it is the eternal competitor Microsoft that is currently attacking again with the cross-platform Windows 10 and innovative products like the Surface models (including stylus). Some analysts believe that this indicates that Apple's days as a true innovation leader are over.

 Conclusion:

    Apple brings tangible innovations to the market less and less often.
    Apple's main product, the iPhone, is struggling with a saturated smartphone market and strong competition.
    Apple's stock lost a lot of value in 2015.
    Going forward, Apple should expand content.
    Rumors about a car from Apple persist.