Sunday, October 6, 2013

Apple faces Innovation Challenge



Apple is in competition from other companies when it comes to phones and technology. The company used to be number one in the market, but now it faces the problem of innovation. It has not come up with an entirely new product for a very long time since the iPhone and iPad. Other companies like Samsung have surpassed Apple’s sales with their Google-based Android phones and tablets. Due to lack of innovation, Apple has sold thirty percent of their shares.
 In order to get back its leading position, Apple has to come up with a new product that will exceed. So far, the company has come up with a smart watch and an iTV, but a watch and a TV are not exactly something new like the iPod and iPad were.  Apple has been in business not by creating products from scratch, but by making improved models. Other companies made the MP3, tablets, smartphones, and PCs, and Apple stemmed iPad and iPhone from there. Apple lets the other companies fight for being the top seller of its product while increasing awareness of the product, and then it steps in with a model that is more technologically advanced.
Now, the company plans to launch into an unfamiliar realm in business, which is the wearable technology market. Apple is making a smartwatch, but the company faces the challenge of advertising it to the public and convincing them that it is useful and necessary. In addition, other companies such as Google, Microsoft, and Intel are becoming competitors with the innovation of TV. Cable companies are not so happy with iTV because their concern is that people will buy shows through Apple rather pay cable. Before implementing the idea, approval from cable companies is required. It will probably not be as drastic as how iTunes changed the music business.
Another potential idea is improving Siri, a voice search engine, and making it more useful and reliable. The engine was ridiculed in the past, but Apple can add additional functions to it. It could connect other devices such as a tablet or smartphone, or it could be the CPU of your home. Apple has created a home ecosystem based on its product, which control the thermostat and lights, along with other things. This could also be a solution.
As we can see, Apple faces the challenge of meeting the expectations of the market. The demand of smartphones and tablets had worked until recently when other competing companies have caught up with the consumer’s needs. Now that it is no longer bringing the desired success it did previously, Apple needs to be creative and come up with new products to offer to the market. New ideas are taken in consideration, but it is unknown whether it will be enough to keep Apple in the high standards or if it will be unsuccessful. I think that the technological ideas will probably work because the public is always looking for the newest thing available. Ideas such as the Apple based home seem very intriguing, but another thing to keep in mind is the willingness of the consumer to buy the new products. Will the people want to spend a lot of money on these things? Or would they rather stay with the products available in the market such as the laptops and tablets. It is likely that little spending will occur in the future due to the economical restraints that are felt in the present. With the rising national debt and the Obamacare issue, it is hard to see anyone spending money lavishly.

Based on  http://money.cnn.com/2013/09/08/technology/innovation/apple-innovation/index.html?iid=SF_T_River

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