Of course Sir Isaac Newton was right. Gravitational pull is so strong that Apple always falls down. Similarly, the gravitational pull of the competition is so strong that Apple stock is in free fall. But on a serious note, is Apple going to be the next RIM ? And Samsung going to next Apple. ?
Irrespective of whether you are Android or iOS fan, you must be wondering if Apple can ever recover from its fall from grace in the shadows of the Samsung.
Most of the stock analysts and technology bloggers are ready to write off Apple from the technology map. For example, today’s WSJ article asks the question “Has Apple Lost Its Cool to Samsung ?”. But everything good has to come to an end. I would say Apple lost its focus but not cool. That sounds little odd but let me explain.
The last time it was in trouble, Apple has risen from ashes because it gave users something they haven’t experienced before. So they created some value and they were able to reap the profits in the last few years. In the last few year Apple focused on improving the experienced but lost the focus to change the game before others like Samsung could imitate.
In any industry, as profits rise innovation will always be copied faster than the speed of light. And the only thing the firms could do is to innovate faster than competition’s copy rate. And if they don’t they become “uncool”. Just like Apple.
So what can Apple do now ? Find another “white space” where they can innovate and shine again. Of Course, this time it isn’t going to be easy like the previous Smartphone cycle as competitors are better informed and are looking for opportunities just like Apple.
But there are still some barriers that can protect Apple empire. For example iTunes store, application developers, adoption by some enterprises and a unique platform. In the last few months Apple TV or streaming service were mentioned as an alternative source of income for Apple. But the barriers are so high that it will be difficult even for Apple to recreate the magic in these areas. But Enterprise is the one key market that they should able to focus and reap the benefits in the coming years.
First enterprise tablet adoption is still in the early adoption phase and the effect of Microsoft Windows based tablets is relatively small.
Second they can license the RIM enterprise services exclusively and can penetrate enterprise before the likes of Samsung and Google can. And the $137B cash hoard can only help in this cause.
If Apple can open the doors of enterprise for itself, they are more than likely to be the next Microsoft in enterprise than the RIM of last decade.
Let me know what you think and leave the comments .