The financial performance of Apple Inc. has increased because of a single product which is the iPhone. These past days, Apple’s iPhone comprises up to 70% of the revenue in a given quarter. However the iPhone X could be Apple’s worst nightmare.
Most of the Apple’s iPhone history, the company only publicize one model every year, focusing on its resources to develop and choose the product’s depth over its breadth, which concentrates on the products risk. Apple released two different models every year back in the year 2013, then showed three iPhone models for the first time in 2017. But it created an immense risk in diversifying the lineup that the investors have to anticipate for years. But what if an iPhone’s model flops?
A Flop Can Mean a Failure in Execution.
An iPhone flop is not that big of an issue so far. Even though some headlines are featuring the proof of some novelties like 3D Touch and Siri. However, the company still make the consumers convinced that they need the iPhone.
Every year the company enjoys every successful launch of the iPhone.
Apple Inc. also has a strong record of presenting the phone’s new features where consumers desire that much.
There are 2 reasons that iPhone can flop. First, there is a possibility that the phone won’t impress consumers and demands can fumble. Second, even if the product is strong Apple’s execution in meeting the demand could fail. This scenario is slowly revealing before our very eyes.
Reports are detailing the iPhone X’s production challenges, the all-new flagship looks like it will flop. The new iPhone X is a great smartphone but due to Apple’s incapacity to meet all the demands, it’s turning out that the product is weak.
Revisiting the Risk Factor Legalese of Apple
Because of the highly competitive and volatile nature of industries where Company competes, Apple must continue to introduce new technologies, services, products, and effectively stimulate all the consumers’ demands for a new and upgraded technology and manage successfully the evolution of the upgraded products.
The success in introducing new products entirely depends on a factor which is the company’s managing ability where the risk is associated with the product production issues. Therefore, Apple Inc. can’t determine the effect of a new product in advance with its transitions and introduction.
Apple’s supply issues and production are worse than it has ever been, even the supply chain also sounds more complicated now than before because of all the technology Apple is putting into the new iPhone X. Although the demands exceeding supply is mostly a good problem that the company has, and that Apple is too familiar with, those demands are the only ability that Apple has to meet consumer’s fashion.
Apple Inc.’s largest risk factor will be the iPhone X’s unsuccessful product launch.