Apple sales have taken a hit this quarter and the company is starting to feel the pressure of poor performance and a saturated smartphone market. Apple sales have been slumping the past few quarters with Tim Cook even saying things were probably going to get worse. With the cellphone market saturated with both iPhones and Androids, pushing new devices into users hands is proving more difficult. Android OEM’s are continually improving their offerings and in combination with lower pricing than iPhone are starting to pull iPhone customers to their side. Apple sales were expected to improve in China but instead, sales fell by 26%.
As shares of Apple continue to drop in price, the company really needs to take a step back and refocus its efforts and intentions. Apple still makes great hardware and good software (customizability in iOS would be nice), but they’ve lost their drive to make significant leaps and bounds innovation-wise and instead have leaned on the abilities of their marketing department to keep the ship on course. The problem is, the people have gotten wise to Apple’s marketing material. The very well produced and shot product videos are amazing and the visuals are stunning and well done but users want more than a great video narrated by a British guy.
To start, users want value and quality, not just quality. Apple has positioned itself, through its marketing, as a company that makes quality products which you will have to pay a premium for if you want to use them. Apple wants to position itself above other smartphone and PC makers as something a little more special to own, problem is, people are finding great quality with savings and value in other smartphone and PC companies.
This round of lackluster Apple sales is a tough pill to swallow for the company, over the past few years it has enjoyed enormous growth but that era has slowed. It’s time for Apple to think about being more competitive in its pricing, more innovative in its product offerings and less worried about marketing to those with tons of expendable income. Because let’s face it… expendable income is becoming less and less, and people are starting to smarten up about how they spend what money they do have.
Don’t get me wrong, I don’t think Apple is dead and I do think the company can and will get itself on the right track again. I just think they need to find a new target audience.
What do you think about Apple sales falling yet again? What does Apple need to do to get back in the game? Let us know your thoughts and comments below or hit us up on Twitter, Facebook and Google+.
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