Apple is no longer great.


Apple is no longer great.

Qian Tongxin

On August 4 this year, Apple's market capitalization topped trillions, making it the first US company with a market capitalization of trillions, a moment in history.

But judging from this year's new product launch, Apple's record of valuable innovative products is zero.

In this capital binge, innovation is no longer a measure of corporate progress, and crazy capital is driving up the stock price of technology companies.

The market capitalisation ranges from $0 billion to $100 billion, Apple has spent 30 years, and from $900 billion to $1 trillion, Apple has only spent nine months.

Indeed, Mr. Cook, who succeeded Mr. Jobs, was a great professional manager who made Apple's profits more than 20 times in a decade. However, iPhone is still iPhone, and Jobs has no subversive.

Apple boarded the altar of capital market, but lost its innovative gene.

People are beginning to miss Steve Jobs, the architect of the smartphone revolution, who was once kicked out of Apple and tried to save the day when Apple's share price fell to $1. Jobs's status has never been replaced.

Today, when Apple is about to hold a grand event with the largest number of new releases in history, consumers are no longer expecting a new iPhone. After all, all mobile phones have grown into a shape, a function.

Apple may have been the most successful brand story in the history of the United States, but its future is worrying.

History tells us that since the 1980s, one of the top five listed companies in the U.S. has been replaced. If Apple has been lacking in innovation, it could lose its dominance of global market capitalisation as the smartphone market saturates, giving way to technology companies like Amazon or Google, which are also doing well.

In the second quarter of this year, several research institutes reported that Huawei, China's global smartphone shipments surpassed Apple, ranking second for the first time in the world. This is the first time in seven years that Samsung and Apple have broken the top two list of smartphones in the world.

But Apple's real rival is not HUAWEI, but itself.

Apple, which has lost its innovative genes, is embracing a new price strategy: "The less you sell, the more expensive you sell."

In the second quarter of this year, sales of the iPhone were flat, but Apple's average iPhone price was $724 on the back of a high profit of $999 on the iPhone X. In the past quarter, Apple's profits jumped 32%.

Analysts are predicting that Apple's upcoming flagship iPhone may continue to rise to $1100.

Goldman Sachs analyst Rod Hall immediately revised his forecast for Apple's stock price in a research paper, raising it sharply by 20% as soon as speculation about Apple's price hike came to light. "Apple has once again proved that it is hard for itself to be short." The analyst pointed out.

Cautious analysts had expected a deterioration in demand for the iPhone X, which led to a correction in Apple's share price, but apparently that didn't happen.

I wonder if Apple should be lucky or reasonable. Even if the sales volume does not increase, but the price increases, it can also increase sales.

Consumers have begun to express their dissatisfaction with iPhoneX. The most expensive phone in Apple's history with the most advanced OLED full-screen technology, less than a year after its launch, has become one of the most repaired models in Apple's stores. Apple's "battery door" has not been forgotten.

The past pronoun of innovation is becoming a money making machine today. "Chinese companies in Apple's supply chain make only 1.8% of Apple's flagship iPhone model," the People's Daily quoted data in an August 7 commentary.

The article accuses the world's most profitable company, which has long enjoyed China's cheap labor and a strong supply chain, of not sharing its profits with Chinese citizens.

In Apple's latest earnings report, China's market is still the brightest. In the Greater China region, revenue grew 19%, to $9 billion 550 million.

But Sino US trade friction brought apple into an awkward position. Trump has called for Apple to move its supply chain to the United States as soon as possible to avoid tariffs. This means that Apple's cheap labor force and strong supply chain advantages will no longer exist.

In another day, Apple's Jobs Theatre, built in memory of Jobs, will host a gathering of technocrats. Behind the cheers, Apple's kernel is in urgent need of repair. Instead of worrying about the trade impact, Cook should think about how to pick up Apple's lost innovation genes.


Waonews is a news media from China, with hundreds of translations, rolling updates China News, hoping to get the likes of foreign netizens