Ng: Apple’s woes

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Thursday, May 22, 2014


I CAME across an article in Business Insider on how Apple has been phenomenally successful the last few years, and I would like to share some thoughts. The article said that Apple is so successful that:

a.) It sells more than Google, Amazon, and Facebook combined.

b.) Its sales of the iPhone alone are more than the whole of Microsoft.

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c.) What they sell in iPads alone in one quarter is nearly what Facebook has in total sales for one whole year.

d.) Its online store, which sells songs, and software, did a total of $4.57 billion in sales for one quarter alone. This would be my analogy – the sales of their online store would probably be one third of the total exports of the Philippines.

e.) Their net profit for one quarter is about $10.2 billion. That is more than Amazon’s total earnings the last 20 years, since it started.

However, there are indications that all is not that well in Apple. Their iPad sales are down, and, of course, the sales of their iPhones are down too. Samsung has basically stolen the throne from them as the leading smartphone seller.

There are figures that may indicate the problems Apple is facing. According to research company Millward Brown, which released the report, Google has now overtaken Apple as the most valuable brand in the world. It helped that Google has released some new products, like the driverless cars, Google Fiber, Google Balloon, and Google Glass, while Apple has basically not introduced new designs or models of their tablets and phones. The last year, Apple’s brand was said to have diminished by 20 percent while Google’s soared by 40 percent. Google’s brand, according to the report, is worth $159 billion.

In third place was IBM, while fourth was Microsoft. Interestingly, Amazon is only 10th, Facebook number 21st, and Samsung 29th.

Another brand that did very well was Lenovo, which is now considered as the top PC maker. In the last quarter ending March, they reported that they increased their notebook sales to $4 billion while their desktop sales reportedly grew 14 percent.

Even better, they reported increased sales of smartphones by 59.4 percent (even before they bought Motorola) and the sales of their tablets increased by 71 percent.

Published in the Sun.Star Cebu newspaper on May 23, 2014.

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