Issue: Problems facing Apples Growth
Apple continues to face numerous challenges that are threatening to halt its growth (Cybart, 2016). Over the past few years, the earnings of the company have been falling, and its stock pricing has been collapsing. Some of the factors that contribute to Apple’s challenges include a flat IT global market, a roiling stock market, and weakening economies in some of its foreign markets such as China. The technological changes have also played a crucial role in forcing Apple Inc off its perch. Most of the Android phones in the global market are manufactured by Asian companies such as Xiomi, Lenovo, and Huawei and are priced below $200 (Yarow, 2013). Rival companies have also emerged in some of Apple’s key categories such as virtual reality where Samsung, Facebook, and Microsoft are making immense progress.
Furthermore, the company has to grapple with the challenge of manufacturing enough iPhones to meet the global demand (Cybart, 2016). The company’s growth will be influenced significantly by the number of devices it can supply to the market. The company’s social networking is weak and needs to be fixed. Notably, Apple’s social services such as the Game Center and Ping have room for improvement. The company needs to re-think its social strategy, especially in regards to how it works with small startups and big firms such as Facebook and Twitter.
Patent lawsuits have negatively affected Apple’s growth. The company is involved in various trademark and patent lawsuits. The patent warfare is widely linked to the jockeying for positions by companies that want to increase their market share of tablets and smartphones market. As a result, the company should know when to settle and when to sue because it is wasting time and resources on lawsuits instead of focusing on innovative product ventures.
References
Cybart, N (2016). iPhone warning signs: Apple management is losing control. Retrieved from <http://www.cnbc.com/2016/05/04/iphone-warning-signs-apple-management-is-losing- control-of-the-situation-commentary.html>
Yarow, J. (2013). Apple's new software looks great, but it doesn't fix the fundamental problem with its business right now. Retrieved from <http://www.businessinsider.com/apple-still-faces-big-challenges-2013-6.>
