Apple Inc. (NASDAQ:AAPL) may be at a crossroads, according to FORTUNE magazine. In an article this morning, Philip Elmer-DeWitt echoes an opinion in a blog article published earlier this month by Paul Sagawa. It was posted on the market’s first day after shares of Apple Inc. (NASDAQ:AAPL) hit the lowest price it had seen in nine months.
FORTUNE’s article highlights the basics of Sagawa’s blog, explaining how Apple Inc. (NASDAQ:AAPL) changed the tech world but is now facing an uphill battle against some fierce competitors. Statistics show that globally, five Android phones are sold for every one iPhone. And this problem doesn’t look much better for the iPad either, as competitors begin to come out with their own tablets that some consumers may see as newer and better than the iPad.
Although Apple Inc. (NASDAQ:AAPL) is refreshing its products more quickly and offering a broader line of products, the only thing we’re seeing is slowed losses in market share and erosion in profit margins. Meanwhile cloud services are becoming a major player in the world of technology, and Apple appears to be lagging behind the trend of other platforms, which are embracing the cloud and finding ways to work those services into their models.
Elmer-DeWitt and Sagawa both believe that Apple Inc. (NASDAQ:AAPL) must change the way it operates, or it might just repeat some of the mistakes it made during the days of the Mac computers.
So what does the future bring for Apple? It does certainly appear that the next two years will be pivotal for Apple Inc. (NASDAQ:AAPL). Will the tech giant regain the market share it’s losing, or will it continue to see decreasing profit margins?