Most agree that in order for $AAPL to recover some of its glimmer back, it needs to enter and dominate new categories. Yes, the smart phone and the tablet industry has a lot of room to grow. The pie is growing fast enough for Apple to continue to grow even if it losing market share to Android-powered devices. And yes, Apple will probably be an important player in wearable computing. The rumored iWatch will probably be lightning years ahead of Samsung’s first Smartwatch, at least for awhile. The truth is that the iWatch might be too small to make a difference – something like XBOX for Microsoft.
A lot has been said about Apple’s new dividend and buy-back policy. Some say that there is nothing wrong if a company gives money it doesn’t need for growth back to its shareholders. Maybe they are right, maybe they aren’t. In my eyes, it is a testament that Tim Cook and co don’t have enough imagination and vision to run this great company. It is a sign that no one at Apple is thinking different and bold enough. This could be changed.
Apple already has the mind share and the distribution solved. Now, all it needs is new product categories to offer in its stores.
Apple does not need to invent all its products in order to dominate. It could do as all big and popular fashion brands do: acquire new products or license its name to other cool products. Jony Ive is not the only brilliant designer in the world. There are plenty like him that are doing amazing job.
For example, Michael Kors licenses its trademark to fragrances, cosmetics, eyewear, leather goods, jewelry, watches, coats, footwear, men’s suits, swimwear, furs and ties. Apple should do something similar and be extremely selective in choosing its partners. Jawbone, iRobot, Nike and Tesla are a good place to start.
People that own an iPhone, iPad, iMac would love to own other cool products with the brand Apple – washing machines, headsets, speakers, smart clothes…
Apple should not be viewed only as a technology brand. It is a life style brand.
I don’t have any positions in $AAPL at the time of writing this post.
