Apple Inc. (NASDAQ:AAPL) released the iPhone X this week and although the device will definitely do well with sales given the company’s cult-like following and strong customer retention, the changes to the device are not as revolutionary as the company would have you think. Things like facial recognition and wireless charging are novelties and nice additions, but they don’t change the overall fundamentals of the phone or how you would use it.
Since the death of Steve Jobs the company has really lost its innovative edge while companies like Amazon and Tesla have become the leaders in that space. Apple really hasn’t come out with anything significant since it lost its visionary. I would have expected a more integrated solution by now like having the iPhone syncing with your iFridge to dispense you a cold beer when you walk through the door or for your iStove to start cooking your dinner when you start your commute home.
However, it’s because Apple has gone the safe route and avoided any radical changes that has made the tech stock trade like any other, with a price to earnings multiple of not even 20. Apple’s history underscores the value of a CEO and what a strong visionary can do for a company.
The changes that Apple has made to its phones are the type of updates you might expect to see in the latest annual instalment of a sports game on your console where besides an updated roster and a few gameplay changes, the product is ultimately very similar to the one from the prior year. However, by having legions of followers there is not a big incentive for the company to go out on a limb and try something new.
