Global market research firm TrendForce presented the results of the research of the global smartphone market in the first quarter, which shocked the world. According to analysts, in January–March 2016 Apple released 42 million iPhone, which is almost 44 % less than three months old ("TrendForce Reports Global Smartphone Shipments Reached 292 Million Units in First Quarter with iPhone Plunging 43.8%", 2016). That strong quarterly fall on the market of the US corporation is being experienced for the first time
Falling incomes of most expensive companies in the world led to an impressive decline in its market capitalization – Apple shares fell 7.9% to $96,10 at the end of trading on April 26 in New York. Experts say that the iPhone 6s is poorly sold due to the lack of interesting features in this phone. The iPhone SE that was presented a month agowill support Apple shipments in the second quarter before the release of the new flagship. The company is expected to launch the iPhone 7 later this year, which should come with a new design and several improved features (Reisinger, 2016).
However, Apple CEO Tim Cook rejected the suggestion that the global smartphone market reached a tipping point and that his company ended a historic period of growth. The reason for the decline in its performance he called a temporary weakness in the global economy (Heisler, 2016).
Nevertheless, I do not agree with him and as for me Apple should reconsider their policy. Chinese brands have already occupied a large place in the smartphone market and they reached the level comparable with iPhone. In my humble opinion, the main challenge for Apple now is to try to match the inflated expectations of consumers, based on the past success of the company. I suppose that Apple should have to present society with a radically innovative product in the nearest future.
References
Heisler, Y. (2016). Tim Cook explains why iPhone sales will decline for the first time in history. BGR. Retrieved 15 May 2016, from http://bgr.com/2016/01/27/tim-cook-explains-iphone-sales-decline-march-2016/
Reisinger, D. (2016). Apple's iPhone Shipments Fell Off a Cliff in First Quarter. Fortune. Retrieved 15 May 2016, from http://fortune.com/2016/04/18/trendforce-iphone-shipments/
TrendForce Reports Global Smartphone Shipments Reached 292 Million Units in First Quarter with iPhone Plunging 43.8%. (2016). Press.trendforce.com. Retrieved 15 May 2016, from http://press.trendforce.com/node/view/2418.html
