The way Apple Inc’s Q3 financial report has been announced brings to
mind those school overachievers crying over an A-. Their revenue this
quarter is USD 35 billion with a net profit of USD 8.8 billion,
according to their press release. They still surpass all other
competitors in terms of revenue. Yet not ‘enough’ according to their own
and Wall Street’s expectations.
Could it be the creative destruction by other competitors that contributes to their ‘limited’ sales? Maybe. Competition is sky high and the added pressure comes from the fast pace of innovation in the software industry. This means that businesses like Apple’s cannot afford maintaining a steady pace of success. It is crucial for them to keep climbing up and quickly before someone else passes them by.
Innovation can either be a process, a product or both, as in the case of software technology. Mostly innovation will either bring about a whole new technology or improve on existing products. It doesn’t always have to be breakthrough technology but more a creative process. It may be big or small, simple or complex. R&D is a major driving force in innovation projects and requires investing plenty of time and money. And it’s equally important to remember that as there are rewards there are risks.
So while mobile devices serve as basic utility, it is the user experience that adds value in the product. Apple has adhered to their high standards in quality devices.
So what can they work on? For starters, on their iPhone applications. Why? The World Bank’s IC4D 2012 report discusses the global effects of the ‘app economy.’ With three quarters of the world’s population who possess mobiles, there are 30 billion mobile application downloads. These numbers are a clear direction of exactly where technology processes must head.
The report aptly communicates: “Mobile applications not only empower individual users, they enrich their lifestyles and livelihoods, and boost the economy as a whole. Indeed, mobile applications now make phones immensely powerful as portals to the online world. A new wave of ‘apps,’ or smartphone applications, and ‘mashups’ of services, driven by high-speed networks, social networking, online crowdsourcing, and innovation, is helping mobile phones transform the lives of people in developed and developing countries alike.”
This is significant to technology industry to understand that innovation is not the end product, but what is within the product that carries more weight. If Apple gets the message, perhaps their Q4 and future results may meet or exceed expectations.
Originally Posted By SocialJitney
Could it be the creative destruction by other competitors that contributes to their ‘limited’ sales? Maybe. Competition is sky high and the added pressure comes from the fast pace of innovation in the software industry. This means that businesses like Apple’s cannot afford maintaining a steady pace of success. It is crucial for them to keep climbing up and quickly before someone else passes them by.
Innovation can either be a process, a product or both, as in the case of software technology. Mostly innovation will either bring about a whole new technology or improve on existing products. It doesn’t always have to be breakthrough technology but more a creative process. It may be big or small, simple or complex. R&D is a major driving force in innovation projects and requires investing plenty of time and money. And it’s equally important to remember that as there are rewards there are risks.
So while mobile devices serve as basic utility, it is the user experience that adds value in the product. Apple has adhered to their high standards in quality devices.
So what can they work on? For starters, on their iPhone applications. Why? The World Bank’s IC4D 2012 report discusses the global effects of the ‘app economy.’ With three quarters of the world’s population who possess mobiles, there are 30 billion mobile application downloads. These numbers are a clear direction of exactly where technology processes must head.
The report aptly communicates: “Mobile applications not only empower individual users, they enrich their lifestyles and livelihoods, and boost the economy as a whole. Indeed, mobile applications now make phones immensely powerful as portals to the online world. A new wave of ‘apps,’ or smartphone applications, and ‘mashups’ of services, driven by high-speed networks, social networking, online crowdsourcing, and innovation, is helping mobile phones transform the lives of people in developed and developing countries alike.”
This is significant to technology industry to understand that innovation is not the end product, but what is within the product that carries more weight. If Apple gets the message, perhaps their Q4 and future results may meet or exceed expectations.
Originally Posted By SocialJitney
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