As Apple stocks continue to plunge, questions are being asked. Is this the end of iPhone market dominance? Are slumping Chinese sales being impacted by trade issues with the US? Will the selloff continue? Terrible news makes for great headlines, but in actuality, this situation is far less exciting than it looks.
Sure, we’re not used to seeing guidance adjustments being made by Apple, and we’re still getting used to iPhone sales not surging to ridiculous levels when a new model is released. But this isn’t the first time that Apple has been shown to be a ‘normal’ company that experienced that same issues as other technology businesses.
Firstly, the upgrade cycle has changed. Apple users aren’t upgrading reactively for no reason. With a number of battery hacks, software improvements and thousands of websites making sure that Apple doesn’t improve software usability too quickly, there’s less need to grab the next best thing.
The market is also more competitive. While rumours are flying around about Chinese businesses punishing users who use Apple products, the truth is that the once easy to navigate smartphone market is now far more complicated and the offerings have become blurred. Android is now a real competitor and Samsung is producing products that in many areas dominate Apple’s offering.
Finally, brand loyalty isn’t what it used to be. Steve Jobs has been gone for a while and it’s been an eternity since the iPod, iPhone and iPad were unveiled, changing the consumer hardware market forever. Loyal consumers have waited for the next big thing, but design and functionality have not been (entirely) revolutionised in many years.
Apple is a normal company with normal problems, and now it’s experiencing many of them all at once. Billions of dollars being wiped off your value is never good, but let’s face it; this is a rounding error for a company as enormous as Apple.