APPLE IS facing mounting challenges in 2012 to refresh key product lines in the face of rising competition after a year marked by record profits but also the death of its founder and less dramatic design innovation.
A white iPhone, white iPad and white iPod touch were the most noticeable physical changes to Apple’s products this year, although it updated its devices’ internal hardware and introduced new software and services to retain its edge. But industry analysts say Apple needs to do much more in 2012 if it intends to stay ahead of rivals following the death of co-founder and chief executive Steve Jobs in October.
“Next year is going to be a pivotal year for the company,” says Rob Enderle of the Enderle Group. “Apple for the last decade has clearly led the market and now the market has proved to be very good at being a ‘fast follower’.”
The tech analyst says Apple, with Tim Cook now chief executive, needs to explore new areas of technology to stay ahead. Apple hit new heights financially in 2011, with $108 billion in revenues in its fiscal year ending in September – up from $65 billion in 2010 – as well as $26 billion recorded in net income and nearly $82 billion available in cash reserves. But Google Android phones now dominate the global smartphone market with a 52.5 per cent market share in the third quarter, more than double that of a year ago, according to the Gartner research firm.
The iPhone’s share slipped to 15 per cent from 16.6 per cent and Samsung became the number one smartphone maker, shipping 24 million units compared with the iPhone’s 17 million.
Apple also faces competition for the iPad with the launch of a more touch-friendly Windows 8 from Microsoft in 2012, which should also boost the new Ultrabook PC category, a rival to the MacBook Air. In addition, there is a threat from cheaper tablets such as the Kindle Fire, which Amazon said yesterday had led sales of more than 1 million Kindles a week in December.
However, Tim Bajarin, president of the Creative Strategies research firm, says that Apple will have prepared a road map for the next several years and 2012 could be another big product year. – (Copyright The Financial Times Ltd 2011)
