Apple's Profit Downturn and Negative Customer Opinions Threaten 'Decade-Long Malaise' for Company

[MacRumors]

Analysts at financial firm Oppenheimer today added to the pile of criticisms aimed at Apple and its current, and future, state of innovation within the technology industry. In a recently published note (via Business Insider), the firm addressed a few "strategic issues" it currently has with Apple, as well as concern for the future trajectory of the company.

In the near-future, Oppenheimer believes that iPhone sales will peak, specifically in 2018, and that "the company lacks the ability to raise prices across its iPhones, iPads and Mac products," which is hurting its growth. The firm also described a disharmony between "Apple's primary role as 'the hardware platform' ... with its secondary role as 'the software and service provider.'"

"We believe Apple lacks the courage to lead the next generation of innovation (AI, cloud-based services, messaging); instead will become more reliant than ever on the iPhone ... We believe Apple is about to embark on a decade-long malaise. The risks to the company have never been greater."

While the "Apple is doomed" mindset has been prevalent for much of the company's lifespan, the "universe of negativity" surrounding the company became more noticeable throughout 2016. In April, Apple reported its first year-over-year decline in iPhone sales and quarterly revenue since 2003, and although initial shipments of the new Touch Bar MacBook Pro models were reported as strong, subsequent user experiences have largely varied between positive and negative opinions.

In October, Apple forecasted a return to growth for the last half of 2016 thanks to the holiday shopping season, potentially putting an end to the company's downturn after its first annual revenue decline since 2001 and three consecutive quarters of negative growth. The constant bright spots in Apple's revenue remain its services category, including the App Store, iCloud, and Apple Music.


Article Link: Apple's Profit Downturn and Negative Customer Opinions Threaten 'Decade-Long Malaise' for Company

 

[Crosscreek]

Tim has turned Apple into a phone company and fails developing new products.It has also failed the pro market. The moto is just think thin.

 

[scott911]

Interesting to be greeted by this article. I was loading up this site, as I've done everything morning your years now. Just habit I guess -

And I was thinking to myself - why am I doing this ? - just to see yet more evidence of how current mgmt has further weakened the past strengths of the company? It's like being hooked on a bad soap opera ...

 

[Juicy Box]

It is amazing that articles like this are about a company that makes crazy amount of revenue and profit.
Nothing lasts forever though.

It looks like Apple under Tim Cook is being more and more like MS everyday. While MS, is starting to be a little more like Apple.

Crazy times.

 

[M2M]

Time to sell my stocks I guess

 

[keysofanxiety]

Eehh, a lot of negativity, but practically there's not an awful lot that would need to be done in order to make a lot of people happy.

1) Drop all spinning drives or make 128GB Fusion the absolute minimum on every computer. The OS running on platters is much too slow and gives a horrendous user experience, especially for people buying a (still expensive) entry level Mac. They wouldn't want to buy one again.

2) Get a consistent hardware upgrade cycle for the computers and try not to upsell. If you can't make an entry-level computer have decent real-world performance at a certain price point, then don't offer the entry-level model.

3) If you don't have any new CPU/GPU options for hardware refreshes, upgrade storage options instead, or reduce pricing a little.

 

[jayducharme]

In this new age of media where disinformation is the norm, I find it hard to believe any analyst or forecast. There's often so little background on the predictions, they come off as wild guesses. If anything, Cook has been a good steward of Apple's finances. They have enough cash to weather the storm as they search for the next big trend. After all, they created a slew of innovations over the course of a decade. I'm willing to be patient with them.

 

[AppleWarMachine]

in other words...Apple is doomed

on a serious note, I agree that the company is not headed in the right direction (moving away from its core beliefs)

 

[AJ5790]

In this new age of media where disinformation is the norm, I find it hard to believe any analyst or forecast. There's often so little background on the predictions, they come off as wild guesses. If anything, Cook has been a good steward of Apple's finances. They have enough cash to weather the storm as they search for the next big trend. After all, they created a slew of innovations over the course of a decade. I'm willing to be patient with them.

YOU MUST STOP BEING REASONABLE!!! APPLE IS DOOOOOOOOOOMED!!!! /s

 

[snowboarder]

Nokia, Palm, Ericsson and many others also relied on ONE product. Didn't seem possible at that time
that those huge companies would be gone in such a shot time. But guess what? They are gone
and nobody today knows what Palm was...

 

[Juicy Box]

While the "Apple is doomed" mindset has been prevalent for much of the company's lifespan, the "universe of negativity" surrounding the company became more noticeable throughout 2016.

I think it has been worse since the October so-called "hello again" event. Apple, maybe not intentionally, built up high expectations for the event. Only to let down many Mac fans, myself included.

 

[goodcow]

Switched to Apple in 2007 or so, after years of building my own computers. Bought into the entire ecosystem. Mac Pro, iPhone, iPad, Apple TV, Time Capsule. Later sold the Mac Pro for a 2012 Mac Mini after the disasterous trash can Mac.

After my Mac mini is no longer usable, I'm likely switching back to Windows. Thanks, Tim.

 

[B.K.]

My faith that the "new Apple" can deliver a 2017 (2018?) iPhone worthy of a "mega cycle upgrade" is dwindling. I hope to be surprised or delighted, but that hasn't happened in years.

 

[Exile714]

There is literally nothing Apple could do to stop this culture of negativity. No product will ever satisfy the incessant neediness of people who call themselves fans of the company.

And profits continue to flow, stock prices stay relatively the same, and normal people keep buying Apple devices.

 

[snowboarder]

"The constant bright spots in Apple's revenue remain its services category, including the App Store, iCloud, and Apple Music."

iCloud s@cks, Apple Music - nobody cares and App Store is there because we have no choice.
Where is the innovation in those "great performing" categories?

 

[Arminnn89]

i have 15 inch mbp late 2016, which cost me fortune and i cant use it now because bootcamp has severe bug that affected my speakers and replacement device is going arrive after Xmass, i feel like i should buy surfacebook

 

[magicschoolbus]

Anyone looking at their product line could of told you this. No ports, headphone jacks on some products and not all, removal of wifi routers, underpowered computers, a strange attempt as a fashion company, and a CEO who cares more about social issues then putting out a fast computer that people actually want.

 

[Otelm]

"the company lacks the ability to raise prices across its iPhones, iPads and Mac products"

... WHAT!?

Shut your mouth, Oppenheimer, before giving them any ideas.

 

[spiderman0616]

I've been listening to this BS about Apple for years, and it's always at a fever pitch around this time of year when all the big players have released all their stuff. There's nothing more to talk about for 2016, so time to start cranking out the doom and gloom articles.

That being said, it does start getting to me. Just last night, I was thinking about what my options would be if this is the year the critics are right. I supposed my best tablet/computer options are something from the Surface line, and my best phone option is probably the (gag) Pixel phone. And I suppose I could just rebuild my music library in Spotify instead of Apple Music, as much of a PITA that would be. Not sure what I would do with my movie/TV show collection in iTunes--I guess I would just have it on a PC of some kind until it goes down with the allegedly sinking ship. And I suppose I would have to move all my iCloud documents somewhere and figure out what I'm going to do with all my GarageBand and Ferrite files.

I also think about my older son who desperately wants an iPad this Christmas and wants to throw in all the money he's saved for the year to help pay for it. What do I tell him? The negativity really starts getting to me sometimes, and part of me wants to say, "Sorry buddy, probably not the best investment at the moment."

There are highs and lows throughout the year when you're an Apple fan who follows the media closely. This is one of the lowest lows I've ever seen as far as the naysaying goes.

 

[Smeaton1724]

We are 2 years in. iOS hasn't moved forward as only Macs can develop iOS software. How can we think that iOS and iPads (Alleged to be the future of computing) will reach the next level of software when the Macs (as a generalization) are so under-powered.

They had the Air at low entry prices, they had the Mini at a good power vs price ratio, they had the 15'' MBP with discrete graphics... Then they push low power, high prices and gimp products (The 2014 Mac Mini is a disgrace). The Mac is a niche that feeds iOS software development, it needs some devices at low prices for some products to make it accessible, some devices with high power. They have nothing left, the last 2 years worth of products they have just introduced very thin under-powered and expensive products.

When you bet the company on functional design, then stop releasing products that fits that need but start describing them using the word ''courage'', at some point you will start to have a bad time.

 

[i.mac]

In this new age of media where disinformation is the norm, I find it hard to believe any analyst or forecast. There's often so little background on the predictions, they come off as wild guesses. If anything, Cook has been a good steward of Apple's finances. They have enough cash to weather the storm as they search for the next big trend. After all, they created a slew of innovations over the course of a decade. I'm willing to be patient with them.

Apple was doomed with Steve, Apple is doomed without Steve.

Meanwhile everyone buys Apple products, and everyone cpopies Apple products because, well... Apple is doomed. Go figure.

 

[Cineplex]

The had the courage to kill AirPort.

 

[Romy90210]

In this new age of media where disinformation is the norm, I find it hard to believe any analyst or forecast. There's often so little background on the predictions, they come off as wild guesses. If anything, Cook has been a good steward of Apple's finances. They have enough cash to weather the storm as they search for the next big trend. After all, they created a slew of innovations over the course of a decade. I'm willing to be patient with them.

innovations??? the iPhone and the watch ??

 

[Juicy Box]

There is literally nothing Apple could do to stop this culture of negativity. No product will ever satisfy the incessant neediness of people who call themselves fans of the company.

This is bull.
I have been a fan of Apple for over two decades. Only recently, I have started to be disappointed in Apple. It is not me, it is them. They are a different company then they were just a few years ago.

 

[jam3andy]

Coincidentally (or not), after nearly a decade of being an exclusive Apple product buyer (desktops, laptops, wireless networking, backup, phones, music, movies) and advocate to family and friends, I am personally nearing the point of starting to move away from Apple for at least some of these.

Where Google, Amazon are going with AI and data-based technology may leave Apple in the dust peddling watch bands and super hip commercials and artist cross-promotions.

Reading about Apple trying to catch-up to Google in maps is telling. Apple was a leader in developing and deliverying advanced technologies in a superior user experience.