iPhone is probably the most valuable product in the world that represents the backbone of
hardware trade with half a trillion dollars and undergirding its software store App Store. It continues to be the envy of consumer product companies worldwide.
If history is an indication, America's favorite handheld device will ever reside with the digital camera, calculator, pager, Sony's Walkman and Palm Pilot in a museum. Although it is difficult to imagine the iPhone dying, the change can quickly stumble upon controversies deeply rooted in American culture.
Keep in mind that it was as late as the mid-1
"Over time, every franchise dies," said Nick Santhanam, McKinsey's Americas exercise leader in Silicon Valley. "You can invent a fantastic mouse trap, but if people ultimately don't want a mouse trap, you're screwed."
Kodak, Polaroid and Texas Instruments are all examples from the past past of companies that were too hard for an old idea. Today's technology giants, ranging from Netflix (who have already reinvented themselves to rely on ad-free streaming video) to Google's parent Alphabet Inc. (counting advertising as 86% of revenue), should note the painful closures to avoid the same fate.
Apple's mouse trap is anything but broken. Apple represents 60% of Apple's revenue, and 96% of companies participate in Fortune 500. The phone carries the bulk of the $ 545 billion valuation that Morgan Stanley allocates to Apple's broader hardware store.
Apple, for the better part of the 21st century, was the champion of the next big thing: iPod, MacBook Air, iPad, iPhone. Apple wasn't always first, but its products were easier to use, thinner, cooler.
With the iPhone success since it emerged on stage, the next big thing has been more difficult to find. Apple has had no breakthrough on television, a modest success with its watch, a stumble in music and much speculation about its intentions for autonomous cars or the creation of original programming. Now, as a comic book movie, we are all left to wonder if Apple's greatest strength could be the greatest weakness.
Apple CEO Tim Cook confirms the latest iPhone delivery trends, suggesting his company is facing a potential inflection point. "Apple has always used periods of adversity to review our approach," Cook said in a January 2 letter to investors.
Apple has a legacy of the invention, Cook says. That's something Cupertino, California, will need.
Tepid iPhone sales are not all that Apple in China. Competition from local smartphone rivals, conflict outcomes and court battles can make 2019 a tough year for the company in its main market outside the US photo composite: Crystal Tai.
In a CNBC interview on Tuesday, he pointed to rapid growth in services and "portable" – such as watches or ear buds – as the cause of optimism. Today, Apple will become more known for its contribution to health care than its fancy gadgets, Cook says.
Whatever form it takes, Apple's evolution will be careful if it's just that it's hard to recycle. A decade ago, Nokia's dominance in handheld devices doubled after executives failed to create a compelling operating system to make their stylish smartphones more user-friendly. Finnish managers have on several occasions told Nokia that it needed to change quickly but lacked urgency and resources to do so.
There are success stories, to be sure.
Model T nearly fully substantiated Ford Motor Co.'s rise a century ago, when the detroit automaker owned about half of the US car market. Without "Universal Car", Henry Ford would probably have been forgotten.
A closer parallel to Apple is Microsoft Corp. The most famous product, Windows, was so dominant that it drew extreme regulatory reviews while selecting the Seattle software company on top of the personal computer market before cloud computing existed.
"You can invent a fantastic mouse trap, but if people ultimately don't want a mouse trap, you're screwed."
Both Ford and Microsoft adapted and survived. Iconic vehicles such as Ford's Mustang Coupe or F-150 pickup proof companies can live one productive life after the first hit product fades. Microsoft's transition to cloud computing with its Azure product has meanwhile ravaged the company back near the top of the world's most valuable company title race.
Still, it's a hit.
" is difficult to be a two-trick pony, "former Microsoft CEO Steve Ballmer told Thursday." It's great to do one. It's amazing to do two. Do three? I have a lot of respect for a company that can do three tricks. … It's just hard to come up with concepts that can make it happen. "
He said Apple's product line of Mac products is a trick and the so-called i-series (iPhone or iPod) was a second." If they had finished with the iPod, where would they be? "They managed to "they drifted away" with a phone.
With all accounts, the next series of iPhone's twelve-year mark has been remarkable, especially when one considers that the average company in the S & P 500 remains in the index for only 15 years. on how well he draws from Apple's next act.