Has Apple Lost the Plot?

The recent launch of Apple's (AAPL) iPhone 7 and iPhone 7 Plus by the company seems extremely underwhelming driven by weaker product cycle performance, poor overall demand and an unimpressive innovation pace or poorer innovation-delivering capabilities hugely against expectations after the significant success of its predecessor iPhone 6 and iPhone 6S.

The problems

For this time, Apple has borrowed almost all the features that are already existing in the market such as, bigger screen size, sleeker design, faster processing power, more dynamic touchscreen, iOS 10, better camera, image and video stabilization feature and longer battery life which are already existing in the latest Chinese smartphones.

The dearth of delivering innovation by Apple might prove disastrous for the technology giant over the longer term and thus, needs immediate action for delivering outstanding technology features that are both unique and competitively-priced.

Further, there’s no earphone jack on the newly introduced iPhone 7 and iPhone 7 Plus so, anyone having wired headphones would be unable to listen to music through the phone if it’s on charging.
Has Apple Lost the Plot?
Image by DariuszSankowski / Pixabay
Therefore, one must make sure that the phone is completely charged while on an international flight and wishes to enjoy music through wireless headphones.

The wireless AirPods can also be used for listening to music through the phone by connecting them through Bluetooth while on a long flight but, that too may not work after its takeoff. The AirPods are believed to have 25 hours of power backup that appears extremely attractive for the music lovers. In addition, AirPods can seamlessly be used with both Apple and non-Apple devices because the core connecting technology remains Bluetooth although, manual pairing needs to be done with the non-Apple devices.

The lack of an extra jack for charging the phone while listening to the music through a wired headphone appears to be problem for the music enthusiasts. However, Apple has strategically launched the wireless AirPods with significant power backup to somewhat cope with this problem. Importantly, Apple for the first-time has introduced the connectivity friendly AirPods for iPhone that can be easily be paired with the non-Apple devices.

A closer look

Look wise, the iPhone 7 and iPhone 7 Plus are exactly the same as their predecessor with similar sizes as well. But, this latest iPhone is powered by a four-core processor A10 Fusion chip that has two superior-performance cores which are expected to be about 40% faster than both the predecessor phones iPhone 6S and iPhone 6S Plus. The two greater efficiency cores utilize only one-fifth of the power to extend battery life.

Particularly, the battery of iPhone 7 and iPhone 7 Plus is expected to last two hours longer on an average compared to the iPhone 6S. In addition, the graphics processing power of the phone would be 50% greater than the iPhone 6S and iPhone 6S Plus while 240 times quicker than the first iPhone.

Apple iPhone 7 and 7 Plus have several common features including, the latest water-resistant and dust-resistant design, devoid of a much-needed headphone jack and new stereo speakers. However, the iPhone 7 Plus is expected to be somewhat of a premium handset with an attractive larger display and a total of three high-resolution cameras that includes a 12-megapixel telephoto lens.

Despite the iPhone 7 and iPhone 7 Plus having greater battery life, more energy-efficient processors and superior graphics processing capabilities still, the phone lacks any innovative and newer eye-catching feature that again displays the industry-leading innovation delivering capabilities of the company.

Conclusion

Overall, the investors are advised to “Hold” their position in Apple Inc. considering the company’s significant long-term growth prospects but, currently weaker financial position with notable total debt of $84.94 billion against weaker total cash position of $62.62 billion only, restricting the company to make future growth investments. However, the profit margin of 21.70% appears impressive and PEG ratio of 1.67 depicts healthy company growth.
Published on Sep 14, 2016
By Subhen Mittra

Copyrighted 2016. Content published with author's permission.

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