What’s wrong with Apple?
Some facts: The course of the Apple Share fell over 16% since the 21 of September. That means a loss of almost 80€ per share. At the same time the company decreased the revenue expectations for the upcoming fourth quarter of the year. According to the Financial Times Germany, “Apple showed amazingly weaknesses; weaknesses that do not fit to Apples high standards“. But what are the reasons for this development? Is that a crisis? How did the CEO, Tim Cook, react on the issue?
Do you remember the fourth of October 2011, the day before the death of Steve Jobs? The IPhone 4S was introduced; as well as the revolutionary language assistant Siri. But is Siri really revolutionary? Financial Times declares: “The planned revolution did not take place”.
Maps came out to be full of mistakes
In January 2012 Apple presented the IPad 3 and did a major mistake: “It only runs with the fast LTE connection in the United States. Apple installed the wrong module for the connection for the rest of the world”- Financial Times insists. Finally Apple sorted “Google Maps” out of IOS, the operating system for IPhones, IPods and IPads and released it’s own map software “Maps”. “Maps” came out to be full of mistakes. “Apple CEO Tim Cook had to apologize and even recommended to use the rivals product Google Maps”
The 23rd of November Apple released its latest product “IPad Mini” and presented an “unexpected” updated version of the normal IPad as well. Financial Times professes the “IPad Mini” to be a sign that: “Apple fights for market shares and therefore neglects its profit”. With the updated version of the IPad Apple recovers its former mistake: “A new chip, new docking connection- a LTE module which works for important selling regions like Europe”.
“Firing Browett is the admission of an own mistake”
After many mistakes Tim Cook made decisions: He fired Scott Forstall, one of his most important managers. Financial Times beliefs: “For Apple he is a manager who is too careless – something that Tim Cooks does not suffer”. Forstall was not the only person who had to go. John Browett who was hired nine month ago and the board member responsible for the Apple Stores had to go as well. “Firing Browett is the admission of an own mistake”- Financial Times interprets.
“The company is going to present a record quarter”
Apple did mistakes in 2011 and 2012, which its costumers are not used to. An indicator is the stock market development of the Apple share since the 21st of September. The CEO drew conclusions and fired two very important board members. The future will show if this is going to be enough. Is that a crisis or not? Financial Times supposes not: “The company is going to present a record quarter after the Christmas trade in January”. One of Apple success keys was the usability of its products. But the usability was missing lately if one has look on “Maps” for example.
One thing is for sure: If Apple wants to stay the most expensive company in the world it has to avoid these kinds of mistakes.