Can Apple Capitalize on the iPhone 6 and 6 Plus Success?

Can Apple Capitalize on the iPhone 6 and 6 Plus Success?

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Over the years, Apple has always dominated the market in terms of revenue share. For all of you stockholders and people that actually work for Apple, this domination probably is the only statistic you should care about. However, in the general Apple vs Android fanboy wars, it meant little to nothing. In terms of raw market share which represents what consumers want more, or rather, purchase more, Android always held the lead over Apple ever since the day Android eclipsed Apple back in 2012 as far as US market share goes.

Recently breaking free from telling their customers what they need and actually listening to their wants, Apple finally released two new iPhones that, the previous lack of has caused current and potential customers to give Android a try; larger screens.

After having a monstrous quarter that saw a record-breaking quarterly profit of $18 billion, Apple is at a very scary point in my opinion. An old adage says that the bigger they are the harder they fall and right now, Apple is higher than any company has ever been before.

Don’t get me wrong, I’m not saying that Apple is doomed. They are millions of years from being doomed. However, Apple must now find a way to keep increasing. As the pie gets larger, it will become more difficult to increase the pie. For perspective, think of the iPad as a potential outcome of what Apple could face this year. The iPad still dominates the tablet market. However, iPad sales are in decline. The iPad reached its pinnacle and now it’s heading south when considering year-on-year sales even though it’s still dominating the market overall. Based on what Apple has to offer for the next iPhone 6S or iPhone 7, we will either see a decline or another great increase.

If Apple stays true to their usual update philosophy of minimal upgrades, it would be similar to not twisting the knife they just stuck into Android. The success of the iPhone 6 and iPhone 6 Plus is directly related to moving on from the Steve Job’s era of believing that 3.5 inches is the perfect screen size. Apple took a page directly from Samsung and HTC who were the first to put their trust in huge screens and it’s paid off immensely for Apple. The iPhone 6 and iPhone 6 Plus was the most drastic change to the iPhone since the conception of the device itself. If Apple decides to only minorly improve on their success, then their success will only minorly improve, or flatten out as such was the case when they allowed Android to sneak up on them.

As I previously stated, this isn’t an Apple is doomed article. We’ve seen that when Apple steps out of their comfort zone, it comes with an overwhelming level of success. On years where there updates where minimal, they allowed the competition to edge them out after quickly catching up to them. Had Apple been less complacent during the conception of Android, Android might have never made it this far. As someone who prefers Android, it’s a realization that’s not very hard to swallow.

How can Apple finish up Android?

First off, I’m hoping they don’t call it the iPhone 6S or iPhone 6S Plus. Through the history of iPhones, the “s” moniker denotes just a small upgrade to the already existing phone. We just discussed that a minor upgrade won’t help Apple capitalize on their success. Next, Apple has already made a bad move by not finishing Android’s biggest manufacture, Samsung, when they had the chance. If you missed it, after years of litigation with Samsung, Apple started to take manufacturing sales away from Samsung by limiting their business with them. This has caused Samsung’s profits to plummet. Just a few weeks ago, news broke that Apple would be going to Samsung for a big percentage of A9 chip in future iOS devices.

Samsung is currently struggling to keep pace with their former successes. Overall, as a company, Samsung is still outclassing other Android manufactures in terms of sales and revenue. So this isn’t me saying that Samsung is doomed, but this is me saying that, if Apple is serious about eliminating their competition, there’s no need to feed the the entity that is likely to bite back.

It’s very possible that Apple’s hubris is showing. With their recent success with the iPhone 6 and 6 Plus sales, Apple could be overly confident that there’s not much Samsung could do to hurt them at this point even with the Samsung Galaxy S6 and S6 Edge. With the past behind us, it will be a very interesting future to see what Apple will do next beyond the Apple Watch and their iPhones due later this year.

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2 COMMENTS

  1. Smartphones are becoming a commodity like PCs. As long as Apple continues to sell high price smartphones, their share of the market will go down to reach their PC level: 10-20%. As for new tech devices, Apple has not designed anything disruptive since Steve Job departure from Apple. The Iphone 6 or the Apple watch are nice but nothing outstanding to attract (new) non Ibuyers. On the long term Im not sure if iOS (or any other OS) is viable on a 10-20% market share?

    • I’m not sure that I can agree with you wholeheartedly. The iPhone 6 and 6 Plus did take a percentage away from the Android marketshare.

      In the long term, I do think you are right to say that they will drop in total market share but expect them to have their moments of market share success regardless of whether or not they are actually innovating. ?

      Some people only follow Apple news and so they think that Apple is the first to do everything.

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