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Don’t screw up Apple: Millions hold their breath for latest brainchild
Analysts don't see Apple losing any races anytime soon but with the unveiling of the iPhone 5, the world appreciates the fragility of its potential...
September 11, 2012 1:30 by Muhammad Aldalou
As the remarkably anticipated date of Apple’s unveiling of its latest iPhone redesign nears, excitement is expressed, possibilities are discussed and breaths are held. While tech geeks, Apple lovers and must-have-the-latest-technology-available peeps are practically prancing for its arrival, developers, investors, suppliers and most of all, Apple, remain very aware of the make-or-break nature of this (deemed to be) historical moment in technological and corporate history.
Analysts are predicting enormous sales forecasts for the device, over 10 million before the end of September and over 50 million before the end of December. Which would, undoubtedly highlight a milestone for the U.S. giant because its rival (not to use the word lightly) Samsung’s Galaxy S3 hit the 10 million mark after 50 days of its release, which is not bad. Not bad at all. But if the sales forecasts for the iPhone turn out to be true, not only will the revenue stream prove to be monumental but a single product release can actually result in a shift of the GDP in the United States.
Before zooming in on the potential of the latest iPhone, let us first establish and recognize that the iPhone (as a general entity) accounts for 70 percent of Apple’s revenue and corporate status. Simply put, if the iPhone tanks, Apple tanks. Although there hasn’t been too many dark and ominous predictions about its future, despite the death of its beloved founder Steve Jobs, many focus their concerns on Apple’s ability to create an adequate enough supply to meet the (what is predicted to be) an explosive and instantaneous demand. Sure, their timely updates are generally very efficient at building up demand, expectations and share value, but there isn’t much use in creating demand that you are later unable to meet.
“Until they do something really unimpressive, which I don’t see happening this time around, Apple has a serious hit on its hands,” said Ramon Llamas, senior research analyst at IDC to Bloomberg.
Observing the contrast between the Smartphone market now and before the passing of Steve Jobs, it is fair to say that the playground has accumulated quite a few more players. Or rather, the existing players have just become significantly more active at being worthy rivals. The Smartphone market, worth (according to Bloomberg findings) approximately $220 billion last year, is now a host to a string of makers including HTC, Nokia and Google as well as the aforementioned Samsung of course.
Attempting to nibble at the largest slice possible, the phone makers are in the habit of releasing several Smart-phones every year, as opposed to Apple’s usual annual update, in attempt to crawl their way in and combat Apple’s releases. But despite Apple’s small margin for error and ‘must-be-taken’ careful approach as its latest brainchild is revealed to the world, it isn’t losing any races just yet. There are three (among other) factors to bare in mind that are bound to add additional pressure on its future determination; wireless network arrangements, keeping up with the supply demands and most importantly, making the iPhone as good as people expect it to be.
Zooming in on the Middle Eastern region, where many loyal iPhone fans reside, an anticipation of a pre-order craze and bidding war is building up. Local and national retailers are already talking about taking advantage of the residents’ determination to get their hands on the device before anyone else by adding a 200% mark up to deepen their own pockets.
On the more noble side of things, others find it despicable. “I’ll be selling (the first batches) to regular clients at a decent price – even if they can afford to pay Dhs10, 000. Some people think it is better to make Dhs4, 000 on one handset. That’s their strategy – not mine,” said Julien Pascal CEO and founder of online retailer Emirates Avenue to 7 days.
As Apple sticks to its strategy of supplying the West before this part of the world, Middle East retailers are still in the dark over what kind of price to expect for this ‘revelation’ of a device.
Hold your breath!