Why did Apple’s stock crash from $7o0 to $400?
Because the company went from being a fast growing beast to posting year-over-year profit declines, and flat revenue growth.
And why did that happen? Because it stopped releasing new products.
The last time Apple announced a new physical product was in October of 2012. That’s 10 months and counting since a new product.
Apple CEO Tim Cook says that’s going to change.
“We are laser-focused and working hard on some amazing new products that we will introduce in the fall and across 2014,” he said in the company’s most recent earnings release.
Apple didn’t announce anything specific, but we have some ideas about what it’s going to announce, and when, based on reports.
After over a year of rumours, Apple announced its Pandora-killer, iTunes Radio would be out this fall with iOS 7. It's an ad-supported streaming service. This is Apple's first ad-supported product ever. It also the first major software application since Maps. It will be interesting to see if anyone uses it.
All signs point to Apple updating the iPhone 5 with an iPhone 5S. Apple's earnings guidance suggests the iPhone 5S comes out this quarter. The quarter ends September 28. Fall begins September 22. Therefore, it seems like likely the iPhone 5S is out somewhere between those dates.
Apple appears ready to release a lower-priced version of the iPhone in a variety of colours. There have been multiple photos of colourful plastic iPhone cases on the web in the past month. We don't have an idea about an exact release date, pricing, or, how the company will pitch it. We don't expect it be super cheap though. It's more likely to be a mid-tier phone priced at $350 or higher.
We've seen leaked images of a redesigned big iPad all year long. Initially it looked like the new iPad would be out in the Spring. Obviously that didn't happen. It seems like it's more likely to be out in October now. The new big iPad will reportedly be thinner and lighter.
Apple's iPad Mini probably isn't getting a major update this year. We doubt it would go over a year without any update to the iPad Mini, so we're expecting some sort of spec bump for the Mini this fall.
This is the biggest wild card right now in Apple's line up. There's been a lot of conflicting reports, but the bulk of the reporting seems to be suggesting no iPad Mini with super sharp screen until the first three months of 2014. The latest comes from Morgan Stanley analyst Katy Huberty who says, 'Lower capital expenditures and component purchases disclosed in Apple's most recent 10-Q confirm already well understood product launch delays (iPhone 5S started a few weeks late; iPad Mini likely in C1Q14), but also support a higher margin profile during the upcoming product cycles.'
Apple reportedly has a team working in secrecy on the iWatch. It doesn't look the iWatch will be ready for this year. Most likely, it's coming later in 2014. It will supposedly be loaded with health and fitness features.
The Apple television! The most obvious, most oft-rumoured product in the bunch! When is it coming? Apple analyst Gene Munster says this year. But, last year he said it would be out last year, so his track record isn't great. We don't know when or if it's coming. We're starting to believe it's never happening. There's been very little reporting about an Apple TV this year.
While every other major smartphone company has decided to make bigger and bigger smartphones, Apple has decided to stick with relatively small screens on its iPhone. For instance, HTC just came out with a 'mini' version of its HTC One. The mini has a 4.3-inch screen. The iPhone is smaller at 4-inches! We hope Apple goes nuts and does a 5.5-inch iPhone, but we're not expecting that. Hopefully it bumps to at least five inches next year.
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