Lurking behind Apple’s share-price woes is the manner in which the Samsung Galaxy S4 further eclipses the iPhone 5, writes Arthur Goldstuck (@art2gee).
This past week, when Apple reported its first drop in profit growth in a decade, much was made of the fact that the market was punishing it unduly harshly. Descending from a $700 high in September 2012 to a bumpy ride along a $400 floor in April 2013, it is hard to believe it’s the same Apple.
Yet, the company reported record iPad sales, up to 19,5-million in the second quarter of last year, from 11,8-million for the equivalent period last year. iPhone sales were also not too shabby, up from 35,1-million to 37,4-million. Analysts were unanimous that Apple was being punished because its pace of innovation had slowed, and there were no killer products on the horizon to follow in the market-shfting footsteps of the iPod, iPhone and iPad.
There is a more fundamental force at work, however, and that is called competition. When Steve Jobs presided over the launch of the iPhone 4 in 2010, Apple was so far ahead of other manufacturers, its fans could not even countenance the idea of anyone catching up.
Just two years later, when it launched the iPhone 5, it was fighting a rearguard action against the new front-runner. Samsung had released its groundbreaking Galaxy S3 in May 2012, giving it a six-month head start over the new iPhone. And even then, Apple produced a device that did not match up to the S3.
