Apple Inc. (NASDAQ:AAPL) Chief Executive Tim Cook tried to repress concerns regarding the tech giant’s potential of innovating by saying that the company has “incredible plans” for some “game changers.” This comment comes at a time when the Cupertino tech giant seems to be caught in rough waters.
The company is having a tough year. Not only is it facing continued stiff competition from Samsung and Google Inc (NASDAQ:GOOG) in the smartphone and tablet markets, but of late, it is also being inspected for tax avoidance. The dip in stock price has also worried investors. Is the company losing its charm of being a tech trendsetter? On being asked at the D11 conference if the company is losing its cool, Cook’s said “absolutely not” after a pause.
Apple Inc. (NASDAQ:AAPL) hasn’t launched anything new since last October. The company has several potential products in the pipeline, but Cook prefers to keep Apple’s tradition of maintaining secrecy. Though he pointed out the company’s interest in wearable devices and television, he kept silent and refused to get into the details of any specific plans or course of action in these segments. At this point of time there is huge pressure on Apple to come out with a new offering that would excite people.
So what can we expect?
Cook says that the company should concentrate on products that can improve consumers’ lives, and the rest will automatically fall into place. Apple Inc. (NASDAQ:AAPL) has been experiencing competition from Google Inc (NASDAQ:GOOG)’s Android-powered smartphones, and it’s eating away the tech giant’s market share. Over 70% of the smartphones sold globally in the first quarter of 2013 were powered by the Android operating system. According to Gartner, Apple’s smartphone market share shrank to 18.2% from 22.5% a year ago.
At the D11 conference Cook was asked about wearable devices, which made him to talk about Google Inc (NASDAQ:GOOG) Glass, the high-tech eyeglasses that interact with the Internet using voice commands. Though the search giant has a mass-market appeal, Cook isn’t quite convinced with the product and is doubtful about its mainstream prospects. He believes that the wrist is more attractive and an intense area of interest. He also points out that the success of the product mostly lies in how well people are convinced that “it’s so incredible that they want to wear it.” The smartwatch is an interesting and a ripe area to work on, which could bring another round of revolution after the smartphone and tablet launches.
Apple Inc. (NASDAQ:AAPL)’s smartwatch launch, hailed as the iWatch, is critical to the company’s earnings and growth. Based on past products launches, there’s a good chance Apple could deliver another hit. Apple has a brand image and is excellent in executing its plan, developing and marketing its products. Some analysts estimate that the launch of iWatch could bring as much as $6 billion to the company’s pocket and add to its product line.