With its huge cash pile and sleek range of products, Apple still looks invincible to the end user, even more than a year after the death of its iconic co-founder. But Wall Street analysts see things differently.They don’t trust Tim Cook to deliver in the same way Steve Jobs did. And investors are letting themselves be convinced that AAPL is no longer a buy.
"The iPhone is losing its pace," is what they say. And who can blame them? Everyone else is rolling out 5-inchers by the dozen, even 6-inchers in what many believe will spawn a new category of devices – the phablet.
But Apple doesn’t want in. They forever maintain that Apple is all about product quality, not market share. The Cupertino giant refuses to ride the trends, and prides itself on innovation. But that innovation seems to be wearing out.
Ok, so the phablet is not Apple’s thing. They’ve got the iPad mini and they’re happy with that. So are the consumers. The iPhone may or may not be losing share. It’s still too early to tell.
But the reality is that Apple is being pressured to innovate. Under Tim Cook, the tech juggernaut has only iterated, analysts say. Nothing brand new is coming out of Apple under his lead. In fact, the company seems to be reaching a boiling point.
That executive shakeup late last year didn’t help either. Apple needs to pull its act together and start generating positive headlines. So what will it take to do that?
Considering that there aren’t many areas left where it can innovate, the full-fledged Apple HD TV seems to be the only thing that can make Tim Cook look like half the visionary Steve Jobs was. A CEO capable of seeing where that next bet should be, not just an operational whiz.
Think about it. The late Steve Jobs never let an opportunity get away. Jobs pushed hard to introduce a compelling multi-touch smartphone before anyone else. So he did, and the iPhone ended up dominating the smartphone market.
He used the same recipe with the MacBook Air, introducing what became an all-new category of notebooks.
The iPad is probably the best example. Jobs literally invented the tablet computer, as far as the public is concerned. This kind of thing generates enormous amounts of hype, and if Apple thrives on something, it’s hype.
So what does Tim Cook need to do to recreate Apple’s sparkling image in the eye of the consumer? Roll out something new!
Apple is said to have been unable to convince the cable companies to do business with them. And who can blame them? Their profit margins are ridiculously high.
But why convince them to change their business model? Why not go the Apple way? Steve Jobs said people don’t know they want something until you give it to them. And it worked pretty much every time.
If Tim Cook doesn’t want to see his company ripped to shreds by moody Wall Street analysts, maybe he should focus on putting Apple at the center of the living-room already. Just a thought.