There is no denying that Apple have revolutionised the way in which we communicate across the globe. Since the production of its first iPhone, unveiled on the 9th January 2007, its sales have created a profit of over 3.7 billion, resulting in the organisation becoming the first public company worth more than 1 trillion dollars.
Little did Apple predict the worm around the corner…
Shockingly, statistics show that within the last three months of 2018 sales, profits and turnover had hit a downward spiral, resulting in Apple losing 39% of its value since October. Investors are predicting that Apple’s sudden loss will mean that the company will continue to live off past inventions rather than creating new ones.
But what is causing this economic stunt?
America’s ISM manufacturing index published the news that there had been the largest monthly slowdown in factory activity since the 2008 recession.
This seems to have created a domino effect across the world as China’s economy has also crumbled (apple crumbled). Chief executive for Apple, Tim Cook, revealed that 100% of worldwide sales decline has routed from China, demonstrating how influential the China economy is all over the world.
Not only is China’s economy in decline, the use of an app called WeChat (an app created by tech giant Tencent) is becoming increasingly popular and more accessible to a wider range of devices. The app allows its users to do a large variety of activities, ranging from buying their lunch to organising transport, the variation is massive.
This app is also installable and easy to use on the cheapest android handsets just as well as it is on the £1,000 iPhone X, where as in previous years, only the latest iPhone owners could access this service with the touch of their right thumb. The app also offers its users a similar version to the apple IOS which allows people to house messages, photos and contacts. This is another contributing factor as to why buying an iPhone in China is becoming less and less justifiable.
Other factors which are contributing to the decline
The issues run deeper than just the Chinese economy. Economist have also predicted that the fall in sales, profits and turnover is also as a result of the high pricing Apple demand. On average an iPhone is £630, almost five times greater than a non-Apple phone and so it is more likely that these individuals without smartphones would invest into the next best thing, rather than forking out on the huge price Apple demands for their handsets. Also, nearly three in four adults already own a smartphone, resulting in an exponential decrease in their demand. One quarter of adults living without this innovation is due to them living in the developing worlds. This means that the remaining adults which do not own a smartphone are unlikely to go out and buy one, particularly an iPhone, considering their extortionate prices.
And who can blame them? Despite Sir Jony Ive’s (Chief Designer Officer at Apple) best efforts, the typical large touch screen, rapid connection speeds and innovative camera quality, is not that different from its competitive rivals. Why would you choose to spend more money on a product that is so similar, yet almost five times the price? It just doesn’t add up and it doesn’t look like Apple will be changing the pricing of their products anytime soon despite the huge competition.
The average life span of an Apple phone, unsurprisingly, is becoming longer and longer, previously 2 years, now reaching an average of 3 years per iPhone. Either people already have a perfectly working handset or they simply cannot afford Apples new inventions.