Is Apple CEO Tim Cook to blame for the company’s lack of innovation in recent years? Apple critics like to think so — even some of its loyal users think so, too.

Cook doesn’t hold the same level of devotion that his predecessor and Apple’s cofounder Steve Jobs did. Jobs was able to bring Apple back from the verge of bankruptcy, turning it into the most valuable company in the world.

You could say that Cook has had it harder than Jobs because Cook has had to come up with new products and ways to sustain Apple’s value. Cook has the stressful job of sustaining growth, revenue, and profits for Apple.

And he has to do all fo this while continually being compared to Jobs and while also receiving massive amounts of criticism on how Apple’s products aren’t innovative enough. Everyone is watching Apple’s every move and wondering if Cook is really cut out for the job…

Is Tim Cook Ruining Apple?

Has Apple just been skating by and relying on its past glories?

After all, its “groundbreaking” iPhone X doesn’t possess any features or technology that haven’t been on a smartphone before — aside from the phone’s new Face ID feature. Apple has a leg up when it comes to this unique feature of its newest phone. However, it really wasn’t a feature that customers needed or desired…

The lack of innovation on Apple’s part ultimately falls on Cook’s shoulders. However, even lacking in innovation, the company is still doing pretty well — financially.

Over the past three years, Apple stock has outperformed 81% of the S&P 500.

One thing to be said about the iPhone X’s Face ID feature is that it has the possibility of taking Apple in a new direction with new technology. The new feature introduces more face sensors into the phone, enables you in unlocking your phone through face recognition, and lets you send animated emojis that mimic your face’s movements.

While all of these benefits don’t seem entirely essential to users, it’s still allowing Apple to introduce the need and desire for augmented reality (AR) into phones and technology in general.

It gives users the chance to test out the technology and allows Apple to grow its AR platform. Tim Cook may be onto something here…

The market growth for smartphones is beginning to plateau. What else is there to improve upon with the market and technology? Yes, you could improve the technology as the years go on to ensure that users get the most from their phones. But other than that, there’s not much else that’s innovative or even exciting about smartphones.

The honeymoon phase is over. We’re ready for the next new technology that’ll change our lives in the same ways that smartphones did…

On the Verge of Changing Lives

Could Apple be the company to make a product that’ll change our lives forever (again)?

Cook might not be the visionary that Jobs was, but he does know how to ignite a fire under Apple engineers and workers for researching and developing products that will be groundbreaking.

Last year, Apple introduced its AirPods. The AirPods resemble Apple’s iconic earbuds, but there’s one amazing new feature about them — they’re completely wireless. According to an NPD estimate, AirPods have made up 85% of dollars spent on the “totally wireless” product category so far this year.

Then there’s the Apple Watch. It was a slow first two years for the Apple Watch, but it’s finally starting to pick up momentum. According to research firm IDC, Apple sold 3.4 million watches last quarter, taking an estimated 49.6% market share.

Samsung only holds an 11% market share for its smartwatch. Apple will continue becoming a leader in wearables over the next few years — especially as the technology for smartwatches improves and as companies begin to fully understand what consumers want from smartwatches.

So, while you may think that Tim Cook hasn’t brought anything innovative to the table, you may want to reconsider that notion.

Under his leadership, there have been products released that, while not be entirely innovative, have brought in a good chunk of money for the company.

Cook has been able to maintain Apple’s place as one of the highest valued companies in the world — keeping investors happy.

Not to mention, the company’s efforts toward augmented reality could actually end up making the company bigger than ever…

Until next time,
Jennifer Clark
Pro Trader Today