While it’s exciting Apple is updating its software, the truth of the matter is, this does nothing to deal with Apple’s fundamental business problem.
Apple’s earnings are falling on a year over year basis as the growth of the iPhone business crawls to a halt.
As its earnings collapse, its stock price collapses along with it.
There was nothing announced today that’s going to change that.
In fact, watching today’s keynote, an investor could have easily become more pessimistic about whether or not Apple’s CEO will even address the slow down in Apple’s iPhone business.
On stage, Tim Cook tried to shift the conversation away from talking about iPhone market share toward iPhone usage.
He said iOS usage blows away Android usage. While this is a nice feather in his cap, it doesn’t really matter all that much for Apple’s sales. iOS has always had an engagement advantage over Android, but Android is selling more handsets.
Cook also reiterated Apple’s primary goal is to make the best handset, not the most handsets. This could be misdirection, but his repeated use of this idea sets a tone that Apple will not release a low-cost iPhone to increase sales.
If Apple wants to own just a niche of the smartphone market, more power to it. Just don’t expect the stock to come roaring back to life.
But if Apple wants the stock to be a killer again, it needs new products, not new designs for its old products.
Today did nothing to show Apple has new breakthrough products that are going to move the needle.
It doesn’t mean they’re not coming, it just means they’re no more likely today than they were yesterday.
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