Is Apple doomed? I don’t think so

Image: Apple

After yesterday’s Apple stock fiasco, it has left many investors, and consumers alike, claiming that the end of Apple is near if they don’t change up their business model. Some actually believe Apple is doomed, here’s why I don’t think that’s the case.

Yesterday proved to be one of the most difficult days for Apple and Tim Cook, even having CNBC calling it “a dark day for Apple.” Shares of AAPL stock plunged 7%, or about $10 per share, during after-hours trading. This led Apple CEO Timothy D. Cook to issue a letter to investors. You can read our full article on Apple stock here.

In the letter, Tim Cook said that he projects Apple to lose an estimated $9 billion dollars in revenue from its initial projected outlook.

Apple published this initial guidance for the fiscal 2019 quarter in November:

fiscal2019-nov1-apple
Image: Apple

Then, yesterday, Apple published revised guidance for the fiscal 2019 quarter:

fiscal2019-jan2-apple
Image: Apple

I want to make this crystal clear, some believe that Apple is doomed for the fact that they are on track to lose $9 billion dollars. But, Apple’s current market cap, despite the stock fiasco, sits at $750.91 billion as of this writing, higher than the entire GDP and Nominal GDP of Switzerland—which sits at $678.57 billion—and the Nominal GDP of Saudi Arabia, which is $683.82 billion.

Furthermore, in the letter to investors, Tim Cook highlighted the fact that “Our installed base of active devices hit a new all-time high—growing by more than 100 million units in 12 months. There are more Apple devices being used than ever before, and it’s a testament to the ongoing loyalty, satisfaction, and engagement of our customers.

If a company was “doomed” it would not be able to maintain a growing active user base like Apple has.

Despite all of this, Apple still maintains the highest customer loyalty of almost any other company. I believe that the stock fiasco from yesterday will allow Apple to re-evaluate itself, and hopefully, lower the price of future iPhone models to ensure it will sell better. Of course, Apple will need more than just a lower price, they will need to innovate again, something they have been lacking in recent years.

There’s one specific thing I believe about Apple and the iPhone: iPhone is, and always will be, the core of Apple, and without it, Apple will fail.

To learn more about what I expect from Apple in 2019, you can read that article here.

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Published by

Sid Ramirez

I usually write stuff, mostly Apple. Photographer, film major, environmentalist, techie.

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