"They've got to fire Tim Cook. He's a disaster. They haven't done anything innovative since [the AirPods]," he said.
Research from Australian technology research company Telsyte has found that Apple now has the longest upgrade cycle of any phone maker, but its lack of innovation may in some respects be working for the company, not against it.
Telsyte's Australian Smartphone & Wearable Devices Market Study 2019-2023 has iPhone users now having to wait 25 per cent longer than Android users to replace their phones.
Whenever there is a flat iPhone year, Apple's customers tend to look at other Apple products.
— Foad Fadaghi
So slow is Apple's pace of innovation, shoppers are now renewing their iPhones every three or so years, rather than every two.
But rather than give up on Apple, Telsyte managing director Foad Fadaghi said customers were seemingly doubling down, and buy other Apple products with the money they were hoping to spend on a new iPhone.
Telstye's data revealed that 1.2 million "smart wrist wearables" were purchased in the first six months of 2019, with smartwatches making up 69 per cent of these sales.
"Whenever there is a flat iPhone year, Apple's customers tend to look at other Apple products. iPads, wearable devices, accessories, even AirPods do well in years when the iPhone model hasn't massively impressed the market," Mr Fadaghi said.
"Given that Apple is not releasing a 5G handset this year, we predict that in the second half of this year, Apple Watch will be attractive to a lot of first-time smartwatch or smart-wearable customers," Mr Fadaghi said.
That locks them deeper into the Apple ecosystem, and means that when Apple finally does release an iPhone with up-to-date features such as 5G, it's all but guaranteed to do well.
Even though Apple's Australian iPhone sales fell 13 per cent in the first half of 2019 compared to the same period in 2018, the company still has the highest brand loyalty of all handset makers, with a repeat purchase rate of greater than 90 per cent, Telsyte's research indicated.
Couple that with the fact that Apple is widely expected to release a 5G iPhone next year, and 2020 could be a bumper year for iPhone sales: a phenomenon which Telsyte describes as a "super cycle" of upgrades, returning the iPhone to sales levels not seen since 2017.
"Apple cleverly relies on the maturation of attitudes towards products, before it brings products to the marketplace," Mr Fadaghi said.
"That's probably why we haven't seen Apple smart glasses yet. Culturally we're not ready for the impact of smart glasses. Apple might even have a product already, but it's waiting for the market to mature before making its move.
"This is what it's doing with 5G as well, and it's why we'll see a super cycle next year."
Though the trick of slowing down iPhone innovation may be reaping rewards elsewhere for Apple, it can't hold back technology indefinitely.
Telsyte also found that only one in three Australians believed that 5G was an important feature in a smartphone purchased today, but that figure blew out to 60 per cent of Australians when respondents were asked to consider smartphones purchased before the end of 2020, when 5G coverage is expected to far more widespread than it is now.
FAQs
The company's incremental upgrades, lack of AI progress, and an antitrust lawsuit are a toxic combination for Apple's most important product. It wasn't long ago that smartphone users had plenty of reasons to upgrade after two years. Smartphones were getting significantly better each year.
Why is it important for Apple to innovate? ›
Steve Jobs was a strong believer in the power of design to create products that people would love. He also believed that innovation was the key to staying ahead of the competition. Under Jobs' leadership, Apple began to focus on developing new products that were innovative, beautiful, and easy to use.
Is Apple really that innovative? ›
Apple is well-known for its innovations in hardware, software, and services. Thanks to them, it grew from some 8,000 employees and $7 billion in revenue in 1997, the year Steve Jobs returned, to 137,000 employees and $260 billion in revenue in 2019.
What are the weaknesses of Apple? ›
Despite its dominance in the space of mobile devices and computing, the company does face some key challenges. Among these weaknesses are its highly-priced products, entering areas of higher competition, and incompatibility with other software.
How has innovation affected Apple? ›
Innovation has been a key driver of Apple's success, from the introduction of the Macintosh computer in 1984, to the launch of the iPod, iPhone, and iPad. Apple's ability to create new products that blend technology and design in a way that appeals to consumers has been a major contributor to its success.
Did Apple stop innovating? ›
MacDailyNews Take: Yes, Apple is not as innovative as it was under Steve Jobs who even started the company's work on Apple Watch and Apple Vision Pro, but the company — thanks to Jobs and Cook's subsequent management of iterations of products and services conceived during Jobs' tenure — now has more than enough money ...
What is Apple's disruptive innovation strategy? ›
Apple's disruptive innovation strategy, creating a radical effect, focuses on unmet needs, distilled from reinvention and sustaining innovation. Of course, incremental and architectural innovations have been complementing in creating the flywheel effect.
How successful is Apple's innovation? ›
Apple is a company that is the perfect example of how innovation can take you to the top of a particular industry. By consistently striving to produce technology that functions optimally and not following the path of other competitors, Apple has become the largest and most successful company in the modern world.
What are the biggest issues with Apple? ›
Once dominating the technology world, Apple is now under attack from many sides. Demand from Chinese customers is slowing down, the App Store is facing a wave of criticism from European regulators, and recently its business operations have struggled, causing Apple's valuation to be affected.
What are the biggest challenges for Apple? ›
APPLE, once the undisputed king of the technology world, is now under attack on many fronts. Chinese demand for its products is cooling. The company's money-spinning App Store is under fire from European regulators. And it just killed off a car project that was once one of its famous “next big things”.
- Strengths. Strong Brand and Loyal Customer Base: Apple's brand is one of its most significant assets. ...
- Weaknesses. Dependence on Single or Limited Sources for Certain Components: Apple relies on single or limited sources for certain components essential to its business. ...
- Opportunities. ...
- Threats.
Innovation can be anything from a new idea to a completely disruptive product or service. It can also take many forms. It's not just about creating something new, but it's also about doing things better than before, such as improving existing processes.
What impact does Apple want to have on the world? ›
Beyond this, they've diverted over 2 million tons of waste from landfills since 2015 and have conserved more than 50 billion gallons of freshwater since 2013. But that's not all: Apple has its sights set on achieving carbon neutrality by 2030.
Why are Apple products so important? ›
Apple is known for its consistent software updates, which provide new features, bug fixes, and security enhancements to improve its technology's overall performance and security. This ensures that IT companies using Apple technology always have access to the latest & most effective tools and features.
Why are apples important to the world? ›
Apples are rich in fiber, vitamins, and minerals, all of which benefit human health. They also provide an array of antioxidants.
