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Is Apple Inc. (AAPL)’s Innovation Their Biggest Obstacle?

My programming friend looked at me this morning and said, “This is the biggest upheaval I’ve ever seen on the internet.” I would have to agree with his assessment. Believe it or not, he wasn’t referring to anything based on any certain company. It wasn’t about Apple Inc. (NASDAQ:AAPL), it wasn’t Google Inc (NASDAQ:GOOG) , and it wasn’t in regards to Facebook Inc (NASDAQ:FB) . It did have to do with something that brings all these companies together – closer than some may like.

Optimism for these companies?

Before we get down to the meat of this article, let’s look at some exciting things that could be developing for Apple Inc. (NASDAQ:AAPL), Google Inc (NASDAQ:GOOG), and Facebook Inc (NASDAQ:FB).

Apple has filed for “iWatch” trademark in Japan. This wrist computer would be the first major breakthrough the company has had since Steve Jobs’ passing. It has been rumored for quite some time that this device would link to other Apple Inc. (NASDAQ:AAPL)devices, such as the iPhone.

Apple Inc. (NASDAQ:AAPL)

Senior analyst at Juniper Research, Nitin Bhas, commented on this saying, “Apple has been hinting for some time that it has a big product in the works, this could be it. But that won’t be enough. Apple Inc. (NASDAQ:AAPL) won’t offer something that just connects to your smartphone.” Only time will tell if Bhas is correct.

Google Inc (NASDAQ:GOOG) has received a lot of media attention for their Google Glass device – some has been good, and some has been bad. The point is, it has developed and will be releasing this brand new device to its users just in time for Christmas, or so it is believed. Some companies have already banned the device, but that doesn’t mean it won’t be a big hit when it is released in stores.

Facebook Inc (NASDAQ:FB) seems to be moving in the right direction from its horrific IPO days. Its stock has at least stabilized, it is generating more revenues and users, and most importantly, it is getting more and more involved with mobile. This can’t be overlooked because people of this day and age love mobile devices. It doesn’t really matter if it’s a smartphone, a tablet, or one of these wearable devices, Facebook Inc (NASDAQ:FB) needs to continue to develop a mobile presence.

All of these companies seem to have positive factors aligning for themselves, so what is this “upheaval” that my friend speaks of, and what damage has been done?

The upheaval is everywhere

Read virtually any article or report about companies involved with the PRISM scandal, and that is all you see in the comments. All of these companies have taken a hit to their credibility. That is what is at stake – reputation. There may not be a more glaring example of the saying “It takes years to build a reputation, and only seconds to destroy it.”

I have spent countless hours looking at both sides of this scandal, but the most obvious thing to me is the outburst among the American people. I read a very positive article about Apple Inc. (NASDAQ:AAPL) this morning, totally unrelated to PRISM. Three of the first several comments made on the article? “Why assume it’s a gadget and not some new NSA software?” “Does this mean the NSA get to read our pulse as well as our location?” The third comment was slightly farther down, but still near the top. It read, “…and presumably we have the iSpy to look forward to as well.”

However, it isn’t just Apple Inc. (NASDAQ:AAPL) taking the heat. There were nine tech companies involved in this scandal, and all of them have been receiving unprecedented heat for it. Regardless of whether these companies actions were legal or not, their reputations have been damaged. To what extent is still a mystery, but it will be interesting to see how these companies are effected.

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