BlackBerry and Nokia are winning, while Apple seems to be losing their cool and competitors and consumers are watching. “Where is the popcorn?”
Wall Street, the place thingy where money lives and dies, is having the hots again for Nokia and BlackBerry.
Why? You might ask.
The two companies/competitors are getting full-on cosmetic surgery. This operation gave them a new edge to compete, produce sexy products, and actually tap into waters Apple seems reluctant to sail through.
Numbers Speak Aloud
In the last six months, Nokia’s stock gained 12.20%, BlackBerry gained 43.33%, while Apple gained only 7.25%, under-performing Nasdaq, which was up 10.20%.
This is good news for these two companies, even though this performance isn’t as good as it used to be in the glory days.
However, this is something that seems to ignite and rekindle the romance of old fans, attempts to attract new fans, and of course appeals to investors.
Forbes reported the numbers and they look good:
|Company||6-Month Price Change||5-year Price Change|
This is the revenue as of Sept 30, 2017
How Is Apple Helping?
Here is the thing. A number of market experts and analysts think that the reason for this up-tick in Nokia’s and BlackBerry’s stock is because of Apple’s declining appeal.
Apple took the 2000s by storm and revolutionized mobile phone, personal gadgets, music players, computers and more.
Apple successfully associated themselves with a certain prestige, elegance, and a sexy feel. People wanted to spend more to feel a certain way and be part of the cool revolution.
But, recently, this is not the case.
- Competitors understood the strategy
More of Apple’s competitors began to take what Apple was doing then amplify it or replicate it and offer an alternative solution at a cheaper price.
- Apple Music is still struggling to keep up with services like Spotify
Forbes reported that millennials prefer Spotify to Apple Music 47% to 14%. Even though Apple Music is generating higher profit compare to Spotify.
- Siri was the first, but she is getting tired
While Siri was the first of her kind, her developers rushed into her release before she was ready. This made her a running joke in pop culture.
- Amazon’s Alexa & Echo Dot are crushing it
The HomePad – Apple’s attempt agains Alexa – was boring, weak, expensive, and not as cool as the consumers expected.
- The iPhone X disaster
- It is hurting the sales of iPhone 8
- The demo didn’t work in a public presentation
- More failures in this device that is hurting Apple’s iPhone
- It is more expensive than iPhone 8
- More red flags
- shorter lines of consumers outside Apple’s stores for the release of iPhone 8
- a sharp slow-down in Apple’s sales growth (27.10% back in June 2015 to 7.20% recently)
The Biggest Problem With Apple
Perhaps the thing that is hurting Apple the most is the fact that they seem to be drying up on innovative ideas. The consumer now is much smarter, highly tech savvy and much more difficult to WOW.
Apple continues to produce new versions of something that already exists – and all those innovations were attributed to Steve Jobs.
There isn’t a new product that has the same kind of breakthrough the iPhone or the iPad had.
IBM and Samsung are the dominators while Apple is falling on the listing (innovation wise – Apple is number 11 as of May 2015), even though Apple is still the highest earner.
Learning From A Painful Fall
Nokia and BlackBerry were once the biggest names in the industry. But got left behind because they did very little innovation and they banked on false confidence in their customer base.
The problem was that customers switched to a better solution the moment something new, better and more exciting than what Nokia and BlackBerry offered.
Now these guys learned the lesson. But Apple seems to repeat the mistake of Nokia and BlackBerry – they are getting cocky, they are slowing down in innovation, they are losing their touch and they are cannibalizing themselves.
Competitors are getting very creative and trying to tap into the technologies of the future. Consumers are watching and some of them are even thinking of getting out of planet Earth. Apple needs to catch up.
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