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

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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

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51 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)
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51 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
51 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
51 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
51 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
51 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)

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