8 Oct 2022: is iPhone 14 the start of Apple's downfall?
Apple has enjoyed impressive gross margin of over 40 percent for most quarters. It's impressive brand equity coupled with its apple store that lead to an ecosystem that is such a powerful money making machine.
But is it breaking down now? Is Apple losing its magic? I saw comments that there is no special feature of iPhone 14 as compared to other earlier versions. We saw Apple lowering its demand forecast for iPhone 14 that led to apple share price plunge as well as its list of vendors.
Is it a one off event of a poor product or many more to come? I saw Ive, a long time lieutenant of Steve Jobs left awhile back. If I did not recall wrongly, he is the chief design officer.. For a product to do well, it must meet customers' demand in terms of specifications, including features, brand, social status, etc etc..
While iPhone is definitely recognised as a top brand amongst the long list of phones, it is never ever a certainty that one can forever lead the fight in such a challenging and highly competitive industry...
Apple share price has weakened quite a fair bit and has to hold its recent low of 129 USD if it is to stage a rebound. It is currently holding around 140 USD now. Can it hold in the short term with a 2.25 trillion USD market cap?
Time will be the best witness but what I can say is that it is difficult to continue staying at the top in a competitive market.
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Assuming you perform similar analysis now, will you get the same results? I think Yes.
Does it mean this report on this product needs an update at least 6 months down the road instead of now? Isn't the best shoppg window for US is Christmas run up and Black Friday annually (assuming you are aware) ? Do you happen to know if iPhone 14 is available in China already? Tks tks