Blog #1

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