Apple Inc. (NASDAQ:AAPL) was once known for its cutting-edge technology and being at the forefront of innovation in its industry. However, since the passing of its visionary, Steve Jobs, Apple seems to have a lost a step or two.
Yesterday, Apple announced that it would be adding a new model, its largest ever iPhone – at 6.5 inches in size. While some consumers will certainly see that as enough of a reason to upgrade, Apple has seemed to focus on screen size rather than on features and new innovations. Its iPhone X, which also did not offer anything revolutionary, has struggled with sales coming in well under what was expected by analysts.
Without offering consumers something more significant than a bigger screen size or some modest changes, it’s hard for many people to justify spending a premium price for a phone that isn’t all that big of an improvement over their existing model.
As interest rates rise and costs become higher for consumers, affordability will become a bigger issue than it was in the past, and that could lead to people deciding to stick with older models rather than deciding to purchase the newest and most up-to-date edition.
Apple’s popularity isn’t what it was before, and you only need to look at its fairly time price-to-earnings multiple. With the share price trading at less than 20 times earnings, Apple is actually a very good value buy, but it lacks the hype that it once had. Apple’s brand is starting to lose its lustre, and unless the company puts more of an effort into innovating again, it’s destined to fall behind.
