Ep. 243: Apple's Revenue Shortfall Is No Surprise - Culture Matters

If you follow this podcast or follow us at TEK2day.com you are aware that we have been negative on Apple's lack of innovation for the better part of two years. Recently most of the company's revenue growth has come from iPhone price increases rather than unit sale growth. Apple's recent decision to pull unit sale disclosures was a tell tale sign that the hardware/phone business was not great. Hardly a surprise as competitive offerings from lower-priced competitors (think OnePlus) offer beautiful phones with essentially the same features at a lower price point - not to mention an opportunity to differentiate from your parents in terms of your phone! Further, the camera/pics/video are what most people care about and Apple doesn't have any great camera innovations to speak of. Meanwhile, Google has included military grade night-vision capability in its camera. If AAPL does not plan to innovate on the device itself, time to accelerate innovation as it relates to software & services. Electronic Medical Records ("EMRs") is a great place to start. Apple recently announced a deal with the VA to this end.