Happy Dhanteras and Diwali to whatever handful readers I have! May Goddess Lakshmi be kind and benevolent to all of you and make 2013 a blessed year for you all.
Disclaimer : I am no market whizkid, financial analyst or an investor in Apple stocks. This is not a factual post supported by sh*tload of data. Just an opinionated post based on what I read and how I interpret things.
Apple stocks have slid more than 20%. If your share trades at $10 or even $20, the tangible loss is not as great as the percentage suggests but when your share trades at $700 and 20% equals $140, I would be mighty worried. Both as an investor or as the Board of Apple.
Very difficult for me to tell, why in the first place the stock went up to $700. Still, there are indicators. The world is getting digitised. Everything is going on internet. The web is not only becoming a place to share blogs, information, thoughts or company information but also, the biggest source of commerce.
E-commerce or M-commerce is seeing the surge like never before. I have been a huge supporter of M-commerce and I believe, that’s the future. We already have more than 8 billion people on the planet and the planet is not getting any bigger. What does that mean? That means, day by day, hour by hour, minute by minute, we are getting more people on streets, in shops everywhere.
Shopping is not going to get easier. People will rather have things being delivered to them and payments being done online, given a choice. The current trend of smartphones suggest that very soon, tablets and smartphones will overtake the PC industry (or have they already overtaken them?).
Tablets run on Mobile OS, smartphones, well ofcourse! Simply put, it’s M-commerce which will rule the world very soon. Makes things a little easier to understand, why Apple is being valued so much? Yes, the company that shaped the smartphone industry, that shaped the tablet industry. Heck, the tablet BECAME an industry only because of iPad!
People have waited for different iterations of iPhone since 2008. The adaptability in the market has been something, NO ONE has ever experienced before. Industries have noticed that. Industries have seen the impact Apple has been having on the smartphone and the tablet world. Every corporate, every business worth its salt has been wanting to be on iOS to ensure that they reach out to the maximum people. Apple has been a leader in mobile internet usage for donkey years. People with iOS have been spending more than others (I have read it somewhere, some research, Google that and you’ll find), hell, off the course, there has been a research which shows that iPhone users get more sex than other smartphone users. Urgh, being a Blackberry user, that makes me a little insecure ;-).
The point is, so far all these years, iOS users have been the benchmark for every mobile research, for every data point. No wonder Apple has been rising and rising TILL NOW. Every Apple event has given the industry something, which has penetrated the usage more, which has made people go wow, I gotta own this. If people have not owned that, they had the aspiration to own one (I am talking in general, please don’t come to the point of, NO, I NEVER WANTED TO OWN AN APPLE).
What happened now? Probably the X-factor has reduced. Probably Apple has become more predictable. Probably, mistakes can be made by Apple too. Probably, Android is posing some serious questions of, hey, look at me, people are buying me. I am in more hands and I can help you grow your M-commerce MORE than Apple. Probably, the geographic limitations of Apple are hurting it now. Probably, all of the above. Probably, it has peaked. There’s only a point till where you can climb.
What now? I don’t know. I am not privy to Apple’s future strategy but the key will be, to re-ignite the passion. Make sure, the aspirational value doesn’t go down. Make sure that it remains the FIRST choice for app development for every business, every corporate. Get involved with society more. Use the superior apps of social media giants to create an impact in daily lives of people. Add value, add revenue.
Be profitable but ensure, others make money because of you!
This slide is massive. A new product is not the way to correct it. Better services built on existing bouquet is what will excite businesses.
Please note, I am harping more and more on corporates, businesses, M-Commerce. Why? Because people’s trust in Apple is intact. They love Apple. Just that some of them, despite the love are shunning it in favour of Android. Am sure, works are on.
Posted from WordPress for BlackBerry.