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No doubt today Apple is the leading tech company in the world. Every new feature that the fruit company introduces, each improvement that the company makes in its schemes became the headline on all the sites. This shows the high authority of the company in the market that all wants to know about it, as Apple is perceived as a premium brand . Furthermore, the products that it launches are one of their kinds and are therefore always ruling the markets. But even after all this success an analyst predicts Apple will turn from tech into dinosaur, that is simply the downfall of Apple then it sounds strange. Here are the details.
Downfall Of Apple
As we have stated before on many occasions, Apple’s time to turn from a tech titan into a dinosaur will come, but we still think that we are at least a year away.. — Berenberg Bank’s Adnaan Ahmad
Mr. Ahmad, a man who has been in the private banking business since 1990, has given a strange statement that catches the attention of each individual who is aware of Apple’s magnificent success. According to his analysis, the company will face extinction in fiscal 2014. You all must be wondering the reasons behind such a claim from such a strong analyst, so here comes the analysis.
As per his thinking the company will surely go up in the upcoming 12 years, as the company’s production “learning curve” improves. But the real problem will start after this and the reason might be the pricing of iPad mini. Apple has kept its price low then it should have, most probably, in order to give a tough competition to it s competitors, Amazon and Google.
But the even more worrying thing for Apple, according to him, is that time, when the business of iPhone will go down. This is because its the key product of the company. And the reason he is providing seems to be quite valid that the high pricing of the smart phones of the company can take it down, as he says,
This quarter, for example, ASPs were $636, which compares to $55 ASPs at Nokia, $150 ASPs at Samsung and $200-250 ASPs at HTC and RIMM. So for Apple to gain wider share of the smartphone market, it will need to offer ‘customised’ products at lower price points (i.e. pre-paid iPhone), rather than continue with its current strategy of dropping price on a one- or two-year old product.
And Ahmed is suggesting a solution to the company that it must organize its pricing and should make it an attractive factor, rather making it the reason for the downfall.
Do you think that pricing can be the reason of downfall of Apple?