Is Apple Finished? Yes. This is the Beginning of the End.
I’ve been a huge Apple fan for a very long time. I was around when the Mac was introduced, and then the iMac, and then the iPod, and then the iPhone, and then the iPad, and then the … wait … what did they introduce after that?
Anything of note? I don’t think so.
I guess you could argue that they introduced the HomePod virtual assistant — but that was several years after Alexa swallowed up 70% market share and Google Home swallowed up the other 30%.
(“Wait,” you might say. “You’re forgetting that Apple says HomePod has an amazing speaker!” Really? We waited 2 years for Apple to introduce the HomePod and their big announcement was that it has a great speaker?)
But all is not lost at Apple. After all, they’ve said they’re-inventing TV with Apple TV.
Oops. Sorry. My mistake. Actually Netflix re-invented TV (as did Hulu, Amazon, and a half a dozen other platforms).
I guess you could argue that Apple re-invented the car, right?
Argh! My mistake again. Apple didn’t re-invent the car (even though they had plans to). Instead, Google is re-inventing the car along with Uber, Lyft, and Tesla.
But let’s give Apple a break. After all, they re-invented the home monitoring system, didn’t they? Ooops … sorry, that was Nest, and Google, and a few other companies.
Do you see a pattern here?
I do.
Where Apple Went Wrong
Apple is the most valuable company on the planet with a market capitalization of over $1 trillion. How can a company that’s the most valuable company in the world be in trouble? Here’s how — nearly 2/3rds of Apple’s revenue comes from a single product line: the iPhone.
That’s a monumental risk for the company. Maybe not today, maybe not tomorrow, but eventually. Why? Because they have almost all of their eggs in one basket and there’s no such thing as a product that sells well forever. (Unless you count the Bible, which has been a pretty big seller for 1,700 years, but I digress.)
Tim Cook is the CEO of Apple. His strengths are in operations and finance, not necessarily in innovation and creativity.
Apple is the New Microsoft
Remember what happened with Microsoft? They were a huge company (and a hugely innovative company) for all of the 1990s. But then the market changed and, around 2010, they started to struggle big time.
The good news for Microsoft was that they pivoted and are now doing great again. But it took over a decade for them to find their footing.
Do I hope Apple has a similar resurgence? Absolutely. As mentioned, I’m a big fan. But if they’re going to see a resurgence, I’d suggest they take the approach Amazon has taken over the years.
From what I understand, when decisions are made at Amazon, the default answer is “yes.” I’ve worked with a ton of Fortune 500 companies and I can tell you right now that the default answer at most of those companies is “no.”
Why is that? Because it’s easier and safer to say no to something than it is to say yes to something. If you say yes, you risk failure. If you say no, there is no failure. (But there’s no iPhone, either.)
So Apple needs to change their corporate culture so that it’s more like Amazon.
But there’s one more change they have to make…
It’s Time for Tim Cook to Go
I have nothing against Tim Cook. He’s done an admirable job keeping a huge battleship chugging along. The stock price continues to go up, the reputation continues to grow, and Apple continues to hire the best and the brightest.
Then why do I say he has to go? Because Apple is running on the fumes of Steve Jobs. There’s nothing new or noteworthy coming out of the company anymore. Companies like Google, Amazon, and Salesforce continue to innovate and re-invent themselves. Apple needs to do that, too.
Tim Cook is probably a nice guy. And he’s done a nice job. But we need someone at Apple to re-ignite the flames that Steve Jobs started. If that doesn’t happen within the next year or so, then Apple will become the next Microsoft (before Microsoft re-invented itself).
About the Author: Jamie Turner is an internationally recognized author, speaker, and CEO who speaks about business, digital media, and leadership at events, conferences, and corporations around the globe. He has been profiled in one of the world’s best selling marketing textbooks, is the author of several business books, and can be seen regularly on network TV news. He can be reached at +1-678-313-3472 or via email at [email protected].
Advisor, Consultant, Entrepreneur with a focus on Sustainability
5 年Fascinating article! Although I am a huge Apple fan (because frankly most other tech products end up frustrating me), I completely agree that there is a problem at Apple. Innovation and some risk are extremely important to any business. I still see a huge market for Apple in the areas of both children as well as senior customers, and in creating products that cost between $250 and $500. I’m excited to see what is next and truly hope Apple will have some injection of creativity in leadership.
Tech Lead at SynTechSoft
6 年I think Microsoft is becoming next Apple, look at their products the Surface, Surface book,surface desktop and t all their line up they are so innovative. Next is smartphone and everyone will again look at Microsoft like Apple??
Blockchain and AI enthusiast
6 年Well they should enter the cloud market
Owner, Altringer & Associates Inc
6 年And remember what happened when Apple fired Steve Jobs. Ready for bankruptcy until Jobs came back. And well the rest is history. And it does repeat itself
Business Process Enhancement Professional and Experienced Graphic Designer
6 年Wow! Hard to believe people like you are getting paid for your professional opinion. This piece read like a mouth-breathing, basement dwelling fanboy screaming "Apple doesn't innovate" while dismissing the fact that every company worth their salt is trying to copy Apple's business model. First off, Apple is a hardware company, not a data collection company disguised as an advertising company disguised as a search engine so comparing Apple's business model to Google or Amazon was your first mistake.? Apple is also happens to be one of the most successful retailers in the country with the highest profit per-square-inch than any other retailer on the planet. Why would Microsoft or Amazon bother opening brick and mortar locations if they didn't see the value in retail operations? Never mind that Microsoft's retail division is almost an exact replica of the Apple Store minus actual customers.? Your problem, and fanboys of your ilk, believe that Apple has to recreate the world-changing experience of 2007 every 12 months and that if Apple isn't changing the world or recreating the wheel that they're worthless. I think the dozens of people who's lives were saved because they were wearing an Apple Watch would beg to differ. I'm pretty sure they want Apple to stick around and don't have any issues with Tim Cook's leadership, his commitment to the company or his dedication to civil and human rights.? Maybe it's you that needs to 'think different' about how business works. Did it ever occur to you that Apple doesn't want to be Google or Amazon and that there's a world where putting most of your eggs in one basket can actually work? I don't see anyone decrying Whirlpool appliances and their lack of diversification. Their (clothes) washing machines represent more than 60% of their annual revenue and they ship less than 10 million units a year. Apple sells that many iPhones in a week. So are you equally concerned with them putting all their eggs in one basket?? And like many Apple doom-and-gloomers before you, you'll be yet another soon-to-be-forgotten voice of those who wrongfully speculated the demise of the world's most valuable company. Clearly Apple is far from perfect but to suggest that they can't be a successful company with a handful of products -- many of which lead their respective markets or command a significant amount of market share -- is the epitome of lunacy.?