8 Reasons Why Apple Inc. (AAPL) Is Doomed

Apple Inc. (NASDAQ:AAPL) used to be a company that did everything right, that could do no wrong, that innovated, whose every product was the technological highlight of the year. Now? Not so much. In fact, there are at least 8 reasons why Apple is doomed, the biggest one being that all the things we just mentioned are in the past. Done. Finished.

Over the years, the shine on Apple’s coat has worn off. While other companies have risen to Apple’s level, Apple has been unable to elevate its own game, maintaining a similar level. Sure, sales are still great and the company is still one of the most valuable in the world, but that thing that made Apple great, that unique and magical touch that it had is no longer there. Sadly, these Best Selling Apps for iPhone and iPad are being used on stale products now.

When was the last time Apple Inc. (NASDAQ:AAPL) brought something new and innovative to the table? Its iPhones are repetitive, with limited upgrades and even when there are updates, people end up doing a facepalm over them. Do we need to remember how they removed the audio jack only to introduce wireless headphones that cost an arm and a leg and which everyone will doubtlessly lose? This is apparently what passes for innovation at Apple now, though in fact others had already removed the jack and forced wireless headphones upon users in the past. Apple’s are just more expensive and easier to lose than the other options out there.

But we digress; there are plenty of other reasons why Apple is slowly sinking and will continue doing so unless something changes. Here are 8 reasons why Apple is doomed.

8. Apple Pay

Paying for things with your smartphone has been something many companies have tried to accomplish, Apple and Alphabet included. By comparison, however, Android Pay has a wider reach. On top of the number of retailers accepting it, there are also quite a few banks that support it. Both systems have a lot of room to grow and expand, but that’s something time will take care of. Still, with Apple’s limited reach due to the lower number of users compared to Android users, it will always be at a disadvantage in terms of places that will make the effort to accept it.

7. Apple Car

Apple was rumored to be planning to release an electric car, which was seen as a huge potential avenue of growth for the company. Codenamed “Titan,” the company’s project seems to have been approved by higher-ups back in 2014, but nothing came of it and it now appears that Apple will not develop an actual car at all, but rather self-driving car software. So much for that potential road to some innovation. Now wonder why this one is on our list of reasons why Apple is doomed, right?

6. Apple Watch

We are continuing our list of reasons why Apple is doomed with the number 6 – Apple Watch sales are tanking. The wearable device has been applauded around the world for its sleek design, but since it was originally launched with so much fanfare, it has quickly faded into obscurity. Estimates indicate that during this year’s second quarter, shipments of Apple Watch dropped by nearly 57%. People are choosing to buy products that do the same thing and look just as good, but are a few multiples cheaper (basically everything else out there). There’s also the fact that smartwatches are still not that popular on the whole, with people preferring simpler and much cheaper fitness bands for basic health tracking, with notifications from their phones.

5. Slowing Sales Growth Rate

Regardless of how many fans Apple has and how many are willing to upgrade their iPhones every year for little to no actual upgrades, the company can’t surpass global trends. What are these global trends you ask? Well, Gartner estimates that global smartphone sales will continue to slow down, no longer growing by double-digits. In 2016, the market is expected to grow by 7%, down from 14.4% in 2015. This is a massive slowdown and it’s going to affect all companies in the industry, Apple included. The primary reason for this slowdown in worldwide phone sales is the fact that people are not replacing them as often as before. Even premium phone users in mature markets are extending the life cycles of their devices to 2.5 years now, which is something Gartner expects will not change much in the next five years.

4. To Innovate or Not

Apple used to be this company that you instantly thought of as innovative. They came up with the sleek iPhones, they brought us iPads, they created slim laptops, cool looking iPods, and so on. Now? Studies say no. They remove the audio jack, make an incremental improvement to the camera, and upgrade the battery life a bit. Is that enough? Well, not really; not when competitors are jumping through hoops to bring something new to the table. But this is Apple, so the phones will still sell. And now, let’s see the top three reasons why Apple is doomed.

3. iMacs and MacBooks vs the Rest of the World

Do they look great? Sure. Are they worth it? Not really. Have you seen the price tags on MacBooks of any kind and iMacs? If you have, you must have done a double-take because when it comes to specs, there’s really no comparison. Buying a regular computer running Linux or Windows or any other kind of operating system with the same specs or even better will be a lot cheaper.

Sure, we’re going to mention it again – buying Apple products is paying for the Apple brand. But is it worth it?

We’re going to give it to Apple and applaud the latest MacBook off the production line – the Pro version, which has been quite successful. In fact, just after its release, the MacBook Pro managed to become the laptop U.S online shoppers spent the most on in 2016. Data from Slice Intelligence shows the new MacBook Pro sales generated 7-times the revenue than the 2015 MacBook received after its launch.

And that’s great news, but is it going to save Apple’s future? Likely not. Many are realizing that there are so many limitations to Apple’s products, all while the prices are still sky high. The 13-inch MacBook Pro goes for between $1,499 and $1,999, while the 15-inch model goes for between $2,399 and $2,799. Do you know how much a regular laptop with the specs of the 15-inch model goes for on Amazon? As little as $900.

2. Sales Spikes Only Around Product Launches

We are continuing our list of reasons why Apple is doomed with the reason number 2 – a report from Kantar World Panel shows that the new iPhone 7 and 7 Plus models made an immediate impact on Apple’s sales, becoming the best-selling smartphones in September. Of course, this was to be expected, since the Apple brand has such a strong fanbase. There’s also the fact that the iPhone 6S got a lower price once the new models hit the market, making them more accessible for those seeking to own an iPhone, but who aren’t willing or able to actually pay the full price.

With iPhones and all other Apple products, in fact, we see a spike in sales only in the immediate months following the launch, only for them to just sail through the rest of the year with little changes. This is an issue for Apple, mainly because other competitors have these spikes all throughout the year because they launch more products. Apple’s desire to be the only ones creating devices working with their operating system has limited the company’s success quite a bit. While there are similarities between iOS and Android, there are just as many differences, since Android is a universe of its own, while Apple’s products are more of a closed-off planet by comparison. These are different business models, but they’re affecting Apple’s end results. And now, let’s see the number one in our list of reasons why Apple is doomed.

1. Phones are Being Changed Less Frequently

The situation is this – iPhones are expensive regardless if you live in the United States or abroad. Not only are they expensive, but you’re paying for the brand a whole lot more than you are for the technical innovations under the hood. There are Android phones out there with better specs and lower prices. Sure, an Android phone from Samsung or Huawei doesn’t come with the same elitist stamp that an iPhone does, and that’s something many buyers are actually looking for, but for the ones who aren’t, there’s no question of which phone makes more sense to buy (hint: it’s not the iPhone).

The price tags on iPhones have historically driven users towards signing up for a two-year cellphone contract with their phone companies, whereby they agree to stay with them for two years, paying a certain amount each month in order to be able to buy the iPhone for half the price, or get it for next-to-nothing. With these two-year contracts dying, people are realizing now that they’re not pressed to change their phones so soon and they’re holding onto them for longer periods of time.

What does this mean? Well, Citigroup estimates that the phone replacement cycle will stretch to 29 months for the second-half of 2016, up from 28 months in 2015’s final quarter. In the past two years, the typical range for phone changing was somewhere between 24 and 26 months, so the spike is quite sudden and shocking to many. One of the reasons behind this change is the fact that technological changes between various editions of popular phones aren’t that big nowadays, certainly not as big as they once used to be. And this is something that’s particularly true for Apple’s products.

That being said, these are the 8 reasons why Apple is doomed.

Disclosure: None