It’s not long until other operating systems (ahem, Android) will catch up to the sleek feel and premium functionality of the iPhone, so Apple (NASDAQ:AAPL) is starting to worry about its dependency on iPhone’s commercial success.
Its iPhone sales accounted for a whopping 62 percent in the fourth quarter of 2015, which goes to show just how dependent Apple’s revenue is on its high-end handsets. According to Apple’s latest reports, the iPhone 6s brought record-breaking sales during its launch period.
As a matter of fact, 2015 was a pretty good year for Apple, with 37 more iPhones sold during the last fiscal year than in 2014. But in spite of the great news that might be, the tech company should worry about it becoming a curse thanks to the increasingly competitive smartphone market.
It’s a risky spot to be in, because if Apple cannot maintain the breathless pace of iPhone sales, its other products should step up – which hasn’t be the case for a while now. Take the iPad, for example. Its decline in sales was driven by a couple of main reasons, the least of which is not the arguable lack of innovation.
Compared to the glory period when Steve Jobs was CEO, consumers seem less motivated to get their hands on the Apple’s latest cool toy. It’s true that the iPad Pro brought us a new take on the tablet, but its high cost caused it to struggle on the market.
At the same time, it didn’t help iPad’s sales that manufacturers such as Amazon and Samsung are stealing a fairly large piece of the tablet cake. Amazon, for example, promises a tablet with similar functionality for roughly one-third the price of an iPad.
Lastly, the emerging market of hybrid laptop has completely boomed in 2015. HP, Asus, and Lenovo have flooded the shelves with devices that are both a tablet and laptop. Interestingly enough, some are considerably cheaper than the iPad Air.
And let’s not forget about Microsoft’s Surface book and Surface Pro 4. The latter can be purchased for roughly the same price as an iPad Pro, but comes with a full desktop OS as well.
Arguably, Apple should start directing its vision towards improving more products from its Mac line – and by improving, we mean make them more affordable so Apple can gain market share back from other manufacturers.
So Apple is left with two options: either get the pricing and quality just right, or risk cheapening its brand. Some analysts are bearish on the Silicon Valley company due to the fact that China had played a major role in the iPhone’s record-breaking sales.
Image Source: PC Magazine