Home / Readers Forum / Apple Has Welcomed Surprise

Apple Has Welcomed Surprise

Matthew O’Connell

Apple recently can be compared to every college student’s worst nightmare. As a college student, the stress after taking an exam that you think went poorly is a daunting feeling. Then, the grade comes back and it is so much higher than you originally thought. This causes the feeling where you are almost at a loss for words you are so happy. Apple released the newest versions of their iPhone series, the iPhone XS and XR. Apple obviously had high hopes after almost a decade of success in sales, but they were in for a rude awakening. Sales of these iPhones tragically hit a decline in the global market, most importantly China, but Apple was saved by other sales products. Apple products such as apple watches, AirPods, and streaming services caused Apple’s share price to almost double in value to offset the fourteen percent decrease in iPhone sales.

The surprise increase in sales profits has investors weary. Half of Apple’s investors are hesitant to believe that Apple can continue on this high wave of success. Some believe that this wave of success will end as early as the release of Apple’s next product, a 5G wireless handset. The other side believe that Apple’s increase in the services part of their business will continue to see Apple succeed at impressive levels. At the moment, no one really knows what the outcome for Apple will be, but the power of their success lies with consumers and stakeholders will be watching closely.

Stakeholders are important to the success of business giants such as Apple because of the services and hardware they provide. Products such as iPhones, apple watches, and AirPods are now a part of everyday life all across the globe. If Apple was to clearly fail in the quality and diversity of their future products it will cause stakeholders to stop doing things like investing in the company. As it is known, the more and more stakeholders that stop investing in the company, the more likely it is for Apple and any other companies’ value to drop.

Although Jeremy Bryan, a portfolio manager at Gradient Investments whose company owns 41,000 shares in Apple said, “A lot of the knock on Apple is that they haven’t been very innovative, but they changed the game more than anyone else with things like AirPods and ancillary things.” He believes that diversity in their business such as AirPods will help Apple deal with slows in possible iPhones sales in future years. I do not agree with this optimism. I believe that in the near future Apple will run out of new ideas for products and it will cause stakeholders to pull out their portions of the company. The decreased investment will in turn cause the value of Apple to decrease dramatically. If I were Apple, I would tread very carefully before releasing a new product that is not absolutely needed around the globe. This could be another case of increasing stakeholder power in the global market.

Original story “Apple Was Headed for a Slump. Then It Had One of the Biggest Rallies Ever” Tripp Mickle, The Wall Street Journal, January 26 2020



About mo3422a

Check Also

Pfizer Coronavirus vaccine

Evan Steinberg, October 20, 2020 On Friday, October 16, Pfizer announced that they will not ...