They say that what goes up, must come down. That seems to be true for rocks, arrows, careers, politicians, airplanes, and technology companies. Yet, even stalwarts like IBM and Microsoft and others that once were at the top of the game and fell, continue to prosper.
What about our favorite Cupertino technology gadget maker?
The iPhone maker has more cash and value than any company and most countries. If what goes up, must come down, where is Apple coming down? I ask because I care.
Here’s the scenario Apple faces with many of its products. Traditional personal computer sales are in a slump from which they may not recover. We live in a mobile device era now. Smartphone sales are not stagnant. They’re falling. Tablets, too. Even with Apple Watch, it has become clear wearables are not the next smartphone. We wear more clothes than we have smartphones, but there is something about connected clothing that just doesn’t sound right.
Technology markets all around Apple are in decline. What of Apple?
In the case of our favorite iPhone maker, what goes up doesn’t always come down. Sometimes it just stays up.
Take the iPhone as a perfect example. Worldwide, smartphone sales are slowly going down; even Samsung’s premium line has been hurt by lowered demand. Yet, Apple’s iPhone remains steady. In fact, while spreading the iPhone line to include a $349 model that competes well with cheap plastic Android smartphone wannabe models, Apple has increase revenue.
The same holds true for Mac and iPad. In a declining market, the somewhat moribund Mac line continues to sell at near record levels and the average selling price has gone up. iPad has declined from the glory years after Steve Jobs introduced it in 2010, but some of that drop has to be the result of smartphones with gargantuan screens. Yet, iPad sales have bottomed out and are on the rise while the rest of the tablet industry suffers itself into oblivion.
What’s going on?
Apple has figured out a way to prosper in markets while those markets decline. What goes up, doesn’t always come down.
Let’s blame it on the technology gods. Or, maybe it has to do with premium products from an aspirational brand. Whatever it is, why are not other technology competitors adopting a similar strategy?
Bad strategy. Apple prospers. Good strategy. See how simple analysis can be?