More Upside in Apple?
With Apple’s run in the last couple of years a lot of investors are probably wondering if there’s still fuel in the tank for additional growth. With the recent antennagate issue, there are some Apple loyalists that are noticing that their shiny Apple isn’t as bulletproof as it once was.
The way Apple dealt with the antenna problem was viewed as arrogant and disingenuous. By dragging other ‘smartphone’ makers into the fold and claiming that all ‘smartphones’ have the same antenna issue is very troublesome. Up until now, Apple has focused on one thing - innovating ahead of their competitors instead of slinging mud at them. It’s worked well for them up and until now, so I’m not sure why they’re doing it - other than to deflect attention from themselves. Being customer focused means making products that people love (which Apple succeeds in doing). It also means taking care of them when things go bad. Is the solution to give out free cases the ideal solution? Time will tell. These items are ridiculously cheap to make and probably won’t put a serious dent on Apple’s earnings.
On the more positive side, if you look at the number of people camped outside of Apple and mobile telecom stores on friday, it’s a clear indication that despite the flaws of the iPhone 4, there is still a loyal following that want the device no matter what. This is some seriously powerful stuff. When was the last time you had people line up for hours for a device with a serious flaw. That’s some serious brand loyalty right there.
So what is Apple doing right? They’re launching a lot of different products that have their own verticals. The iPad has proven that it can coexist with the Mac computer line without taking away any sales. The iPhone continues to be hot which will push more purchases on the iTunes/App stores.
Overall, I predict that Apple will continue to crush earnings - that is if they learn from the antennagate mistake and are genuinely taking steps to remedy the problem. i’m hoping that their stance is purely posturing and that they are making steps to truly handle issues like this in the future better.
The way Apple dealt with the antenna problem was viewed as arrogant and disingenuous. By dragging other ‘smartphone’ makers into the fold and claiming that all ‘smartphones’ have the same antenna issue is very troublesome. Up until now, Apple has focused on one thing - innovating ahead of their competitors instead of slinging mud at them. It’s worked well for them up and until now, so I’m not sure why they’re doing it - other than to deflect attention from themselves. Being customer focused means making products that people love (which Apple succeeds in doing). It also means taking care of them when things go bad. Is the solution to give out free cases the ideal solution? Time will tell. These items are ridiculously cheap to make and probably won’t put a serious dent on Apple’s earnings.
On the more positive side, if you look at the number of people camped outside of Apple and mobile telecom stores on friday, it’s a clear indication that despite the flaws of the iPhone 4, there is still a loyal following that want the device no matter what. This is some seriously powerful stuff. When was the last time you had people line up for hours for a device with a serious flaw. That’s some serious brand loyalty right there.
So what is Apple doing right? They’re launching a lot of different products that have their own verticals. The iPad has proven that it can coexist with the Mac computer line without taking away any sales. The iPhone continues to be hot which will push more purchases on the iTunes/App stores.
Overall, I predict that Apple will continue to crush earnings - that is if they learn from the antennagate mistake and are genuinely taking steps to remedy the problem. i’m hoping that their stance is purely posturing and that they are making steps to truly handle issues like this in the future better.
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