iWatch Can Save Apple Profits Over iPhone

Profits falls 22 percent

iwatch can save apple

In a technology conundrum Apple releases one sigh of breath to quickly gasp for another.  Shipments of iPhones helped ease the pain of market loss. 31.2 million iPhones were ordered, beating the estimated loss factor of the mobile unit by a large profit margin. While iPhone sales continued to rise, its band-aid effect didn’t ebb the wound of a  22 percent overall loss from this same time last year. This may be time for Apple to discuss those new products (hint iWatch).

iPhone is the breathing mask to the profit margin for Apple, allowing better than expected profits for the quarterly period of March to June. Since the passing of Jobs, consumers feared the innovative approach of the Mac giant would be slowed. While Apple is teasing about a trio of new products to be released, markets suggest they should start unveiling one of these products to avoid continued losses compared to last year’s numbers.

To reassure investors and stock holders alike, Apple CEO Tim Cook released a statement, “We are really excited about the upcoming releases of iOS 7 and OS X Mavericks (operating systems), and we are laser-focused and working hard on some amazing new products that we will introduce in the fall and across 2014.” Rumors suggest its breathing mask iPhone will give a much needed boost in the fall, continuing the sales increase for the popular mobile device, hoping to still the Apple profit loss. More importantly, consumers are knocking on the door, asking if iWatch is coming soon.

A share price that rose quickly to 4 percent ($440) in trading after hours quickly fell to 1.7 percent ($419) by the end of the day. Cook dashed away naysayers who inquired if the smartphone market has basically reached its peak:

“I don’t subscribe to the view that the high-end [smartphone] market has reached its peak, but we’ll see.” He added to ‘Guardian UK’, “Our focus is always on new products and services. We have opportunities in distribution from carrier relationships to retail stores. We also have a market expansion opportunity [in businesses]. I think we have lots of growth opportunities.”

Apple does have the advantage over Google, who was falling out of the lifeboat last week with Microsoft. Apple is hanging in but this ushers in the question: have consumers reached their peak of interest about the smartphone? Even Cook doesn’t seem significantly strong in his statement.

The iWatch could be the market breaker and Apple should start teasing officially at its potential release date. The iPad and iPhone are revolutionary products but the ecosystem of that fact is becoming a bit stale lately. Most consumers are tired of the wave of smartphones coming from every angle and manufacturer. It’s time for developers and engineers to deliver another product.

Wearing computer science isn’t new, but it is new in the eyes of Apple and millions of its dedicated consumers. This is the step Apple needs to make, before another manufacturer does. Currently, Cook and Apple have played dumb when releasing any information about the product. Unnamed sources have stated the device is rumored to have a Siri feature, and a roll-over feature from iPhone to answer calls on the go, from your wrist. The main interest surrounds Siri, as the tool is suggested to become a major component from reading messages to sensors that gather vital health information.

iWatch can save Apple from continued falls, instead of its heavy reliance on iPhone. There is a point where a company has to begin to address some of these rumors. If no official specs are released, maybe they should tease at a date. Many of you may recall the original ‘Target’ retail store commercials. For months before their unveiling, they teased consumers during prime television slots. It’s time for Apple to make a step up about a tease, rather than remaining mute on the matter. Their profit margin should create a move towards a hint of a release date.

Angelina Bouc

Sources 1, 2

 

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