Not long ago, Apple Inc. (NASDAQ:AAPL) became the most valuable company in terms of market capitalization. Whether or not Apple would go onto become a trillion dollar company was a hot topic for discussion. I was a bear back then, and I’m still bearish, even after its shares have slid by 25% over the last 6 months. It’s not that Microsoft Corporation (NASDAQ:MSFT) or Google Inc (NASDAQ:GOOG)’s Android simply stole the market share from Apple. I believe that the missteps by Apple Inc. (NASDAQ:AAPL), led to the loss of its market share.
What Went Wrong
Apple Inc. (NASDAQ:AAPL) has a reputation of manufacturing premium products, and is symbolized with innovation. Obviously, a consumer who spends $600 on an iPhone or an iPad, would expect his purchase to be future proof and a class apart. But lack of innovation in its recent launches has somewhat disappointed the market. Moreover the launch of its iPad 4 soon after the launch of iPad 3 left consumers feeling cheated and disappointed. Then came the iPad mini!
Yes it looks great, and adds the practicality of carrying it around like a phone, but I believe its technical specs cause problems for Apple. It has not only gone on to hurt the sales of iPad 4, but is also threatening its iPhone 4 sales. But one should note that iPad 4 has an A6X processor, whereas the iPad mini carries an A5 processor. Apple Inc. (NASDAQ:AAPL) has been backing its retina display strongly, and the absence of high ppi (pixels per inch) and a dated A5 processor indicates that a newer iPad mini might be around the corner.
Two things can happen here
1) If Apple decides to launch a refreshed iPad mini soon, to compete with the highly competitive phablet space, consumers will again feel cheated and disappointed. Additionally this would officially mark Apple’s refresh cycle as 6 months, and consumers who prefer to buy retentive products, would refrain from buying Apple Inc. (NASDAQ:AAPL) products.
2) If a refreshed iPad mini is not launched soon enough, new offerings installed with Google Android would eat up its market share.
Google Android devices, based on Ice Cream Sandwich OS are gradually being updated to the latest Jelly Bean OS. This update not only adds a new set of features, but benchmarks have revealed that the new OS is faster than its predecessors. Moreover, consumers are eagerly awaiting the launch of Android 5.0, Key Lime Pie OS. Windows is also updating its WP 7.5 devices to WP 7.8, which adds important set of features like Bluetooth FTP. Samsung is also expected to launch its Galaxy S4 and Galaxy Note 3.