Innovation - Follower Leader?

Apple released it's much anticipated iPhone 6 and 6 Plus to a mixed response. The number of orders alone received - more than 4M in 24 hours (WSJ) - should clearly declare victory for Apple. To top it all reviews have been blushingly complimentary - bigger is better...indeed. The design principles that were once derided by Apple's former legendary CEO - late Steve Jobs, were bravely introduced to the new product - large form factor and hastily introduced product. And now the new iPads have hit the market with very similar theme - one additional feature at a time - for iPad it happens to be Touch ID.

Introducing features years later after they have become mainstream in other operating systems - such as notification center, handoff between PC and phone and actionable notifications - has become a trade mark for Apple, the innovator. Additionally, what has been added to Apple mix recently are the supply chain snafus, operating system release missteps. This is a new Apple - and the value proposition is not entirely clear. Apple used to be the firm that used to bring new perspectives to nexus between consumer electronics and information communication technology. But the new Apple is stuck in the incremental innovation with a clear inability to land them in the retail footprint on time in sufficient numbers.

Apple is now a consumer electronics that has majority of their revenues tied into the phone business. 60% of the revenues (2013 figures) come from phones with an additional 20% from rapidly declining iPad sales. This leaves all the remaining businesses - MacBook, iMac, Servers, Software, iTunes, Publishing, services, accessories etc. accounting for the last 20%. And given they are not able to land sufficient stock of their main breadwinner in the channels across the globe in a time when the competition in the ubersmartphone industry is at it's peak - says a lot about the firms ability to hold on to the lead.

Will the new products such as Apple watch make an impact to the future a momentary giant? Are the obituaries too early? Is Apple stock surviving on a short term hold basis backed by iPhone sales cycles? We wait and see if there is a third wind left in the famed Apple survival story.