Apple, sweet or sour outlook?

Apple have undeniably changed the world. It used to be the most valuable company on Earth, ever. Now, stockholders are insecure and other brands have come close, if not eclipsed, the atmosphere of ‘coolness’ that Apple once made its own. Have they diverted off their successful path, have they done wrong? Or is this just a momentarily glitch?

Humble beginnings

Let’s quickly summarise Apple’s origins, as to understand the future, you have to know about the past. Established on the 1st of April by Steve Jobs, Steve Wozniak and Ronald Wayne. Apple Computer Inc, as it was known in the early days, was quite successful; they sold the Apple I and Apple II, the latter being one of the first highly successful microcomputers made. Its success is mostly accredited to its easeof use, and utility programs (e.g. VisiCalc, the first spreadsheet program). After the release of the unsuccessful Apple III, came the era of the Lisa computer and the Macintosh. During this time the first fractures were seen between the Apple board and Jobs. Thus after an attempted putsch, Jobs was forced out of the company in 1985. The next five years were relatively successful for Apple, even without Jobs. However, then things started to go downhill. Mismanagement, wasteful uses of resources and overwhelmingly confusing product lines left the consumer at a loss, leading to Apple’s decline. Facing bankruptcy, Jobs was brought back as an advisor and then interim CEO. He then restructured the whole company. He retired several products, released revolutionary new ones (iPod, iMac etc.) and generally changed the business model that Apple used. It still took Apple a while to really achieve mainstream success, but things were looking up. In 2007, with the release of the iPhone, Apple was on the way to the top, and eventually became the most valuable consumer-directed company in the world. Then Jobs was diagnosed with pancreatic cancer, which severely affected his day to day running, forcing him to take medical leave. This leave affected the stock market, with Apple losing several percent in trading the following days. Jobs passed away on 5th October 2011. Following Job’s death, Apple have gone from strength to strength, becoming the world’s most valuable company. However, now Apple’s stock is down, speculators are doubting them to stay ahead of the game.

Effect: Jobs

There we have it. So what conclusions can we draw from this? Firstly, I think if Jobs would still be around, Apple would be doing better. Job’s perfectionist management style, ability to say no and general revolutionary view of technology are what made Apple what it is. He was the god of the company, and inspired all his employees to apply themselves to the best of their abilities, and forcing all the big egos of Apple to work together to create great products. In fact when Cook took over, Forstall (head of iOS) was asked to leave after some high profile mistakes in iOS 6 (e.g. Maps). However it seems the real reason of his “firing” was his feud with Jonathan Ives, award-winning designer, who designed, amongst others, the iPod, iMac and iPhone, which was kept at bay by Jobs. This unique approach to leading a company, gave Apple the reputation of being a company that has the best quality products that you can trust. With the advent of ‘Mapgate’, this reputation is starting to erode. Also, it seems that the company is also resting on its laurels. While for any business with $86 billion in the bank and record profits, this may seem quite okay, however, for Apple okay should not be enough.

Effect: No Jobs

The release of the iPad Mini, and rumours of a low budget phone also worry me. This reminds me too much of the first non-Jobs era. The one product per function approach was perfectly workable, and with new hybrid products the consumer will be confused about what is really best for them.

If Apple doesn’t go back to its old self, we’ll never know what we could have had.

A lack of revolutionary products is also a key factor in Apple’s sinking. While Apple was known for creating something new every year, or doing something that really kicked the market’s butt. With the last few keynotes though, starting with the iPhone 4S, Apple hasn’t really done anything new. Yes, the iPhone 5 has a bigger screen, but that is just a reaction to the market. In fact so is the iPad Mini. Apple is reacting toothers, instead of setting a standard of being the proactive one.

Effect: Android et all

However, not only internal factors have led to Apple’s decline in the recent weeks. Increased pressure from Android, Windows 8 and the Samsung Galaxy line in particular have not really helped. iOS is still a good operating system, if a bit outdated. Androids great modifiability has lead to the decline in the iPhone OS, and now with Windows 8, a great operating system in its own right, it ain’t getting better for the Cupertino based firm. Also a very smart marketing campaign by Samsung has really damaged Apple’s rep as the coolest product around. In fact, many people see Apple as being dependable, for their parents, but not for themselves.

So what?

This apparent downfall does depress me somewhat. I used to get excited before Apple keynotes (sad, yes I know) because I knew something amazing would be on show. Nowadays, I tune in just to keep up with what’s happening. Apple need something or someone to kick it in the backside and get it going. Steve Jobs is not around to do that anymore. Cook, seems able, but he has not been faced with a crisis before. All the Android fanboys and Windows fanatics, are probably overjoyed that this tech giant is possibly in decline. But think on this, without Apple there would not be an Ultrabook, smartphone, tablet, app-based market like there is today. If Apple doesn’t go back to its old self, we’ll never know what we could have had.