Apple (NASDAQ:AAPL) has made substantial growth in the past ten years, growing by a whopping 1,300 percent courtesy the iPhone and iPad demand, from all over the world. iPhone and iPad segment accounted for the company’s 71 percent revenue last quarter. If we observe the fiscal year 2004 to 2014, Apple (NASDAQ:AAPL)’s annual revenue grew by 2,108 percent to 182.8 billion. Things aren’t bright for Apple (NASDAQ:AAPL) if you look down the road, say the next ten years.
There are a lot of loopholes in Apple (NASDAQ:AAPL)’s finances and spending policies that might eventually burn the company down. Let’s discuss a few:
One of the major problems Apple (NASDAQ:AAPL) has is that they rely upon a single product too much. Apple (NASDAQ:AAPL) has to wait the whole year just for an iPhone when other segments like the iPad and iPod continue to get obscured by time. iPhone accounted for 58 percent of the company’s sales in 2014. Imagine if iPhone misfires someday, or if it is toppled by another phone, what then? Where would Apple (NASDAQ:AAPL)’s future be then?
Apple (NASDAQ:AAPL) must dedicate time to other segments too, if it wants a steadier, robust future. Because the moment Apple (NASDAQ:AAPL)’s iPhone stops performing, the stock will shatter completely. There won’t be anything to build upon, let alone post profits. Apple (NASDAQ:AAPL) lives inside a world of its own. Back in the ‘80s when Microsoft released an operating system and got it installed on IBM clones, Apple (NASDAQ:AAPL) was left crippled.
Today, Google is using the same tactic against Apple (NASDAQ:AAPL). Google is releasing Android and installing it on every other smartphone, outnumbering Apple (NASDAQ:AAPL)’s IOS. This might prove to be a crucial strike against Apple (NASDAQ:AAPL) because Apple (NASDAQ:AAPL) already depends upon a niche market. If Google manages to lure that niche market away from Apple (NASDAQ:AAPL), the tech giant might just have to pack its bags then.
Apple (NASDAQ:AAPL)’s stock was raging under Steve Jobs. It has matured under Tim Cook who is well known for entertaining the consensus of Wall Street but there’s a wide chasm in the company left by lack of innovation. Lack of innovation is the reason the iPad sales are dwindling, almost on the verge of subjugation; lack of innovation is the reason no one cares about iPods anymore. Lack of innovation will be the reason when other smartphones that are inexpensive comparatively will move past the iPhone in the market.
Apple (NASDAQ:AAPL) is a potential stock, don’t get us wrong, but it still isn’t robust enough to be held on to for the next 10 years. It has some major weaknesses which we pointed out, and those aren’t the only weaknesses. We don’t want to get into the minor details but to make a point: we demonstrated how even a giant like Apple (NASDAQ:AAPL) can have its downfall. Apple (NASDAQ:AAPL) must take some measures in order to solidify its finances for the future or eventually it will be toppled over.