Apple’s biggest worry


Apple, the indomitable tech brand in industry is wearing the crown of the ‘most valuable tech company’ for a long time. The innovative technology, good user experience and stylish product presentation are some inherent features for all Apple products. Since 2003, Apple has successfully exceeded every single earnings report. However, this time, the iPhone maker has failed to meet analysts’ forecast. No doubt, it posted an impressive 21 percent increase in profit, but it cannot be ignored that Apple futile to meet analyst’s expectations:

Let’s check out some significant factors that hurt the company in the past quarter.

Samsung’s growth graph in smartphone segment:

Where Apple launches merely one device a year, Samsung on the other hand rolls out a host of devices in a single year. Samsung’s strategy to launch numerous new devices is helping the Korean giant to contend against its rivals. Latest stats revealed, Samsung’s mobile division has sold 50 million smartphones, a two-fold increase over the year-ago period. With its record galaxy smartphone sales, Samsung has outshipped Apple by a two-to-one margin in the April to June period

The South Korean manufacturer has rolled out its flagship Galaxy S III in May and has already sold over 10 million units. Samsung’s mobile business contributed 63 percent of Samsung’s entire operating profit by generating 4.2 trillion won profit in the second quarter.

Android power

Android is a magic created by Google. Consumers as well as entrepreneurs from all nooks and corners are opting for it. As a result, Android is growing from strength to strength over the years. Google has recently revealed at its I/O event for developers in San Francisco that Android has grown by whopping 500 percent in India only in the last one year.

Android has also become the preferred choice of smartphone users in US which is one of the biggest markets for Apple.

Delay in iPad launch in China

Apple is dealing with a trademark dispute over the ‘iPad’ brand name in China for months. A company namely Proview had sued the Cupertino-based tech giant for violating the trademark. However, the issue was resolved later by paying $16 million to Proview by fruit themed brand. But, the delay caused huge effects that cost Apple sales revenue from its high selling tablet in a large market.

Economic turmoil in Europe

Apple’s chief financial officer Peter Oppenheimer has claimed the weak sales in Europe as one of the reasons that the company did not meet expectations. The decreasing demand for Apple’s devices from deteriorating economies of the EU, such as France and Germany, is affecting apple badly. In addition, a strengthened US dollar is also crediting for the less-than-impressive earnings of the company.

Satinder/ITvoir NewsDesk