Is Apple Reign at the Top for Smartphones Coming to an End?
Topic: External Environment & Outside of the 4 O's.
I
have to admit, I categorize myself as one of the many loyal consumers
that find themselves to be an Apple junkie or "Applehead".
It all started with the purchase of the iPhone 3; the phone that
single-handedly changed the smartphone market and was looked at as a
revolutionary device. Apple then followed their blueprint by expanding
their brand with production and release of the Iphone 3s & Iphone 4
that continued to improve and create features unforeseen as probable to
be accessed in phones. This solidified Apples spot
as the pinnacle of smartphone devices, all that was needed was a cape
and a crown. With the 4 successful releases of the iPhone which broke
many barriers with the mind blowing features & settings had
consumers rushing to the nearest Apple store to get the latest
iPhone device. It seemed as if the sky was the limit for Apple and
their smartphone line, but then came the release of the iPhone 5. The
phone
that was already being herald as the greatest invention of the century
preconception, proclaimed by many turned out to be the complete
opposite. For the
first time since the purchase of my Iphone 3, the thought of leaving
Apple, the
brand I've been loyal too for many years, began to formulate in my mind.
With the release of the iPhone 5 not meeting with the expectations of
the consumers, concern arose as to whether or not apples market should
begin looking elsewhere for the superior smartphone. Many Apple
loyalists can only hope Apple makes major adjustments with future
devices to
regain its position as the best smartphone line in the market.
The concerns I have and the challenges that lie ahead of Apple stem from the external environment:
General External Force - Economic:
Due to the lack of sales for the iPhone 5, prices have been cut to
overshadow the older iPhone 4S in hopes of increasing sales for the
Iphone 5. This comes as a complete shock to apple
consumers due to the fact that this is a rare occurrence for any Apple
product price to be slashed, especially being the release of the phone
was just a few
months ago. While the iPhone 4S also cut its prices in this time
frame, the iPhone 5 is on its 7th price change already which raises an
eye for concern for Apple Inc. The sales were a higher
percentage from last years sales, because of a new device like the 5
being introduced much more was expected. It looks like now its back to
the drawing board for Apple especially with competitions steadily
inclining.
General External Force - Social/Cultural: Apples sales are generated from what many refer to a one of the greatest marketing strategies of the 21st century in conjunction with the reputation as an innovative brand, setting standards and raising the bar of its products to one that other brands are unable to reach. Nothing changed with that as many saw the sky being the limit for the iPhone 5 and very high expectations for the phone which added more pressure to Apple in hope the device wouldn't disappoint many. With expectations of it adding to the U.S gross domestic percentage, the numbers from the release were astounding, breaking many record sales but as the dust cleared, many customers of the iPhone 5 were left disappointed. Many felt that it is only a newer look to an older product. With competitors releasing phones with endless features, Apple released a device that for the first time did not introduce a component that set itself apart from the competition, making it "just another phone" in the consumer. Fortunately, Apple has a base of loyal consumers who believe this was just a bump in the road and feel Apple will have something incredible in stored for the next iPhone; They hold healthy hopes of furthering their lead of being the best smartphone on the market. Those loyal customers such as myself are willingly sticking around despite the rivaling level of performance other smartphones now obtain, and keeping faith (wishful thinking) in the brand that we have grew to love that has never let us down.
General External Force - Technological:
With technology improving day by day, that never slowed Apple down by
always releasing smartphones that turn out to be 10 steps ahead of the
next competitor. Unfortunately with the release of the iPhone 5, it
seems as if that lead has slimmed down a bit as Samsung is not trailing
far behind if not tied or surpassing the Apple as
the leading maker of
smartphones. Samsung products have steadily been approaching the
savvy and presence, but entertaining feel that the iPhone gives off.
It's clear now that they may have found that special touch as for the
first time iPhone is actually being compared with one of Samsung devices
entitled the "Galaxy S3". Whatever the iPhone 5 is slacking on and not
giving the consumers what they seek for, the S3 most likely has that
feature and is quietly filling that void as many are making the switch
to the S3. With the S3 offering practically everything the iPhone 5 has
plus more and at an accessible price, the move does not come as a
surprise. People want the best and the latest and the S3 has capitalized
off the mistakes of the iPhone 5 and made up for what it is lacking. A
brief list of things that matter the most to the consumer:
- S3 has a 4.8 inch screen while iPhone 5 has just 4 inch screen.
- The resolution of the S3 > Iphone 5
- S3 has a quad core processor to when the iPhone 5 has a dual core A6 Apple Processor
- S3 beats out the iPhone 5 in each and every field ( Camera , pricing , screen , OS , dimensions ,storage , processor , battery life, and display)
All the categories that matter most to a customer are the ones
that the S3 beats out on the iPhone 5. Although Samsung releases a new
device more often than Apple which gives them more opportunties to fix
bugs and flaws that the latest iPhone may possess, gives Apple no
excuse. Apple is just known for out thinking and having creations way
ahead of our time but this time around it seems as if the iPhone 5 was
rushed and not much thought or effort was put forth to put out a device
with top notch technology that we expected and assumed for it to have.
Questions:
Did Apple not put many features on the iPhone 5 because of plans for using them for a future device?
How long will loyal customers wait around if Appple keeps slacking before making the transition to another smartphone?
Sources
http://weirdnlolpics.blogspot.com/2012/09/iphone-5-end-of-apples-smartphones.html#.UQ74begVwy4
http://www.trustedreviews.com/opinions/iphone-5-vs-samsung-galaxy-s3
http://www.cnet.com/8301-33506_1-57557848-306/galaxy-s3-beats-iphone-5-for-best-device-of-2012/
http://www.macworld.com/article/2013112/fourth-quarter-revenue-profit-up-for-apple-on-iphone-ipad-sales.html
