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What will Apple do next

January 27, 2013

Apple CEO Tim CookApple, the largest tech company in the world, has come under increasing scrutiny as companies like Samsung, which use the Android platform, have grown faster and increased market share in the mobile device market. While I am under no allusions that Apple’s marketing team is working diligently to ensure their future success, this trend must be troublesome.

One visit into an Apple store will show how many products, accessories contribute to Apple’s profit margin; and therein lies the silver lining for Apple – their profit margin. While some competitors may be encroaching on and in some cases surpassing Apple’s market share – Apple’s profit margins are still envied by even their most fierce competitors.

However, looking into the future one cannot help but ask, “Will Apple be able to compete in emerging markets where similar products are sold for far less?” or  “Will Apple identify new market segments in the US and in other wealthy nations to purchase their products?”  Perhaps Apple will look beyond consumer products that currently defines firm.  Without knowing the Apple’s long-term strategy and product life cycles it is hard to predict what they might do, but betting against the company has proven costly in the past.

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