Why Apple is lagging behind to innovate
Understanding Apple’s Innovation and iPhone’s Dominance
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In recent years, there’s been a growing sense in the market that Apple might be falling behind in terms of innovation, with some questioning whether their latest endeavors are truly driving growth. Take their recent release, Vision Pro, for example. While it received acclaim from tech enthusiasts, its high price point and early development stage may limit its scalability. This product has gotten a good response from tech enthusiasts and gamers. But the challenge is how to make this product accessible to the masses. Apple will have to position the Vision Pro in such a way that it is perceived as suitable for general usage rather than catering exclusively to a specific segment, such as gamers. Consumers won’t buy the product unless there are compelling applications that will increase their productivity and working space. When considering a headset, it’s essential to think about where it fits into your life. You probably won’t find yourself casually wearing it while out and about, like you would with earphones. Instead, it’s more likely to be used in specific settings, such as at home or in the office, where you can fully immerse yourself in its capabilities without distractions.
However, when it comes to Apple’s cash cow, look no further than the iPhone. It remains the company’s biggest revenue generator, accounting for a substantial 56% of their total sales. Impressively, in 2023, seven out of the top ten best-selling phones were various iterations of the iPhone, including the thirteen, fourteen, and fifteen models. This data underscores the enduring popularity and loyalty that consumers have towards Apple’s iconic smartphone lineup.
Apple’s Innovation: Views and Visions
Steve Jobs already predicted that the company would follow in the footsteps of Xerox and IBM if it did not innovate. Although it is generally accepted that Apple is now less innovative, people have different opinions about this topic. Some say that Apple focuses on thoughtful innovation rather than cutting-edge technologies, which might be buggy. Examples such as 3D touch, face ID, and touch ID are some examples of thoughtful innovation that positively improves the user experience. Another viewpoint is that a lack of drastic innovation is not a problem for Apple because of their solid market share and the fact that they come under the list of the most valuable companies in the world. If something is not broken, why fix it?
user priorities, Innovation and market dynamics
In 2020, there was speculation about whether Apple would opt for a 120Hz display, but ultimately, the company chose to prioritize integrating 5G modems into their devices, leading to the decision to forego the higher refresh rate. What factors led to Apple’s decision against adopting a 120Hz display, even when Apple’s biggest rival, Samsung, launched the S20 with a 120Hz display?
Apple didn’t have the capability to introduce these displays, which was clearly not the case. Apple was not lagging behind, but the decision was strategic. Apple knows its users really well. It was really easier to convince the users regarding the advantages of 5G rather than a display of 120 Hz. Most Apple users are not tech-savvy, so people were not much concerned. In a consumer-driven market like India, iPhones are mostly bought because of their status symbol. However, there were other reasons for the short battery life.
iOS 18
Artificial intelligence is the main driver of the remarkable rise in the technology sector. It’s anticipated that iOS 18 will bring a multitude of AI-driven features, possibly including an enhanced Siri, even if Apple hasn’t made any significant advances in the field yet. A lot of people are not happy with Siri’s capabilities, especially when compared to rivals like Alexa. People frequently comment that while Siri finds it difficult to respond to even simple questions, Alexa is far better at answering random ones. Users generally agree that Apple lacks the massive datasets that Google and Amazon have, which highlights Apple’s emphasis on user privacy while also contributing to Siri’s inadequacies. Watch this concept on IOS 18. While it doesn’t place much emphasis on AI, it showcases a lot of new features. People particularly liked using Dynamic Island as a clipboard.
AI race
The weak performance of Apple was due to the slowdown in the sales of iPhones. A lack of artificial intelligence products was an important factor. Samsung, Apple’s biggest rival, has introduced the latest models with features leveraging AI, like translating languages in real time on phone calls, summarizing notes, and editing photos.
Recent developments are a positive sign for the AI push at Apple. Apple recently cancelled its car project and decided to shift some of its workforce into artificial intelligence and its recent acquisition of Darwin AI. Apple didn’t make any official comments regarding the termination of its car project, but there are speculations that the decision was taken due to low margins in the industry because of the fierce underlying competition and the fact that investment interest in EVs has fallen.
Apple is notoriously famous for the security of their devices and user privacy. It’s like a hallmark of Apple’s brand. Tim Cook boasts that Apple is uninterested in collecting user data, and this is what sets Apple apart. But this commitment by Apple further complicates its push into artificial intelligence. To solve this problem, Apple plans to power its iPhones with on-device artificial intelligence, as it will not compromise the safety of the users. These on-device AI models will run locally on your phone and will solely learn about you, whereas in cloud-based AI, data is taken from multiple sources and you get a generalized response as a whole. The main advantage that you are able to get is that you can use it even when you are offline. The local LLMs reduce online exposure and are a good fit for companies with strict privacy policies, as in the case of Apple. The cost of owning big data centers is also reduced.