Apple's Profit Downturn and Negative Customer Opinions Threaten 'Decade-Long Malaise' for Company

by

Analysts at financial firm Oppenheimer today added to the pile of criticisms aimed at Apple and its current, and future, state of innovation within the technology industry. In a recently published note (via Business Insider), the firm addressed a few "strategic issues" it currently has with Apple, as well as concern for the future trajectory of the company.

In the near-future, Oppenheimer believes that iPhone sales will peak, specifically in 2018, and that "the company lacks the ability to raise prices across its iPhones, iPads and Mac products," which is hurting its growth. The firm also described a disharmony between "Apple's primary role as 'the hardware platform' ... with its secondary role as 'the software and service provider.'"

Tim Cook apple store

"We believe Apple lacks the courage to lead the next generation of innovation (AI, cloud-based services, messaging); instead will become more reliant than ever on the iPhone ... We believe Apple is about to embark on a decade-long malaise. The risks to the company have never been greater."

While the "Apple is doomed" mindset has been prevalent for much of the company's lifespan, the "universe of negativity" surrounding the company became more noticeable throughout 2016. In April, Apple reported its first year-over-year decline in iPhone sales and quarterly revenue since 2003, and although initial shipments of the new Touch Bar MacBook Pro models were reported as strong, subsequent user experiences have largely varied between positive and negative opinions.

In October, Apple forecasted a return to growth for the last half of 2016 thanks to the holiday shopping season, potentially putting an end to the company's downturn after its first annual revenue decline since 2001 and three consecutive quarters of negative growth. The constant bright spots in Apple's revenue remain its services category, including the App Store, iCloud, and Apple Music.

Top Rated Comments

(View all)
Avatar
48 months ago
Tim has turned Apple into a phone company and fails developing new products.It has also failed the pro market. The moto is just think thin.
Score: 86 Votes (Like | Disagree)
Avatar
48 months ago

There is literally nothing Apple could do to stop this culture of negativity. No product will ever satisfy the incessant neediness of people who call themselves fans of the company.

This is bull.
I have been a fan of Apple for over two decades. Only recently, I have started to be disappointed in Apple. It is not me, it is them. They are a different company then they were just a few years ago.
Score: 73 Votes (Like | Disagree)
Avatar
48 months ago
Interesting to be greeted by this article. I was loading up this site, as I've done everything morning your years now. Just habit I guess -

And I was thinking to myself - why am I doing this ? - just to see yet more evidence of how current mgmt has further weakened the past strengths of the company? It's like being hooked on a bad soap opera ...
Score: 57 Votes (Like | Disagree)
Avatar
48 months ago
It is amazing that articles like this are about a company that makes crazy amount of revenue and profit.
Nothing lasts forever though.

It looks like Apple under Tim Cook is being more and more like MS everyday. While MS, is starting to be a little more like Apple.

Crazy times.
Score: 53 Votes (Like | Disagree)
Avatar
48 months ago

While the "Apple is doomed" mindset has been prevalent for much of the company's lifespan, the "universe of negativity" surrounding the company became more noticeable ('https://www.macrumors.com/2016/06/08/iphone-sales-to-reach-bottom-brian-white/') throughout 2016.

I think it has been worse since the October so-called "hello again" event. Apple, maybe not intentionally, built up high expectations for the event. Only to let down many Mac fans, myself included.
Score: 39 Votes (Like | Disagree)
Avatar
48 months ago

This is bull.
I have been a fan of Apple for over two decades. Only recently, I have started to be disappointed in Apple. It is not me, it is them. They are a different company then they were just a few years ago.

I didn't leave Apple; Apple left me.
Score: 36 Votes (Like | Disagree)

Top Stories

Apple Takes Legal Action Against Small Company With Pear Logo

Saturday August 8, 2020 11:09 am PDT by
Apple is taking legal action against the developers of the app "Prepear" due to its logo, according to iPhone in Canada. Prepear is an app that helps users discover recipes, plan meals, make lists, and arrange grocery deliveries. The app is a spinoff of "Super Healthy Kids," and the founders claim that they are facing litigation from Apple. Apple reportedly takes issue with Prepear's logo, ...

Kuo: Global iPhone Shipments Could Decline Up to 30% If Apple Forced to Remove WeChat From App Store [Updated x2]

Sunday August 9, 2020 10:17 pm PDT by
In a worst-case scenario, Apple's annual global iPhone shipments could decline by 25–30% if it is forced to remove WeChat from its App Stores around the world, according to a new research note from analyst Ming-Chi Kuo viewed by MacRumors. The removal could occur due to a recent executive order aiming to ban U.S. transactions with WeChat and its parent company Tencent. Kuo lays out...

Google Maps Debuts New Apple Watch App and CarPlay Features

Monday August 10, 2020 9:16 am PDT by
Google today announced the launch of several features for Google Maps on Apple products, including new CarPlay functionality and a new Google Maps app that works on Apple Watch. The new Google Maps app for Apple Watch works similarly to the iOS app, allowing Apple Watch owners to get directions for a car, bike, public transit, or on foot. The app supports estimated arrival times and...

2020 iMac Teardown Reveals Internal Changes and Similarities

Saturday August 8, 2020 12:44 pm PDT by
A teardown video, shared by OWC, reveals the internal changes in the new 2020 27-inch iMac. The 2020 27-inch iMac was announced earlier this week with 10th-generation Intel Core processors, AMD Radeon Pro 5000 series graphics, up to 128GB of RAM, up to 8TB of storage, a 1080p front-facing FaceTime camera, a True Tone display with a nano-texture glass option, higher fidelity speakers, and...

Apple Seeds iOS 14 and iPadOS 14 Public Beta 4 to Testers

Thursday August 6, 2020 10:05 am PDT by
Apple today seeded new public betas of upcoming iOS 14 and iPadOS 14 updates to its public beta testing group. Today's software releases, which Apple labels as fourth betas to keep them in line with developer betas, are actually the third betas that Apple has provided and they come two weeks after the prior beta releases. Public beta testers who have signed up for Apple's beta testing...

Apple Believes This German Cycling Path Logo Infringes on Its Own Logo

Wednesday May 1, 2019 9:51 am PDT by
Apple recently objected to the logo of a new German cycling path in an appeal filed with the German Patent and Trademark Office, according to German outlets General-Anzeiger Bonn and Westdeutscher Rundfunk. Apple reportedly takes issue with the logo's green leaf and supposed "bitten" right side, attributes the company believes are too similar to its own logo. The logo, registered with the ...

Supposed iPhone 12 Display Unit Leaks

Thursday August 6, 2020 8:13 am PDT by
An image supposedly of an iPhone 12 display unit has been shared online by leaker "Twitter user Mr. White". Compared to images of an iPhone 11 Pro display piece, this new unit has a reoriented display connector, reaching up from the bottom of the display, rather than from the left-hand side on iPhone 11 Pro. This may be due to the logic board moving to the other side of the device. A...

Foxconn Reportedly Begins Seasonal Hiring Spree for iPhone 12 Production

Monday August 10, 2020 7:03 am PDT by
Apple's largest manufacturing partner Foxconn has begun its seasonal hiring spree to assist with iPhone 12 production, offering employees who recruit qualified applicants up to a 9,000 yuan bonus, according to Chinese media reports. As usual, Foxconn needs as many hands on deck as possible at its factory in Zhengzhou, China to assist with mass production of the upcoming iPhones. Apple is...

8 Third-Party Home Screen Widgets That You Can Try Out Now on iOS 14

Wednesday August 5, 2020 12:56 pm PDT by
One of the biggest new features of iOS 14 is Home Screen widgets, which provide information from apps at a glance. The widgets can be pinned to the Home Screen in various spots and sizes, allowing for many different layouts. When the iOS 14 beta was first released in June, widgets were limited to Apple's own apps like Calendar and Weather, but several third-party developers have begun to test ...

New 27-Inch iMac's Storage Affixed to Logic Board, 4TB and 8TB Configurations Have Expansion Connector

Friday August 7, 2020 7:46 am PDT by
Following a report from German blog iFun.de that claimed the new 27-inch iMac's flash storage is soldered to the logic board, MacRumors has obtained additional information in an internal document for Apple technicians. In the document, Apple says that the flash storage is indeed affixed to the logic board and cannot be removed. However, for the 4TB and 8TB configurations, Apple says that a...