iPhone Have A Serious Innovation Problem

Apple AAPL -0.56% managed to balance one unplanned iPhone upgrade with a stylish iPhone XS update, there are more serious problems to worry about now.  

Analyst Gartner revealed today that iPhone sales for the 2018 holiday season actually suffered their worst decline in over 3 years.  Gartner says Apple sold 64 million phones last year, down 9 million from 2017’s 4th quarter. Furthermore, Apple fell to 15.8% from 17.9% in the global market. Apparently, Chinese rival, Huawei, climbed to 14.8% up from 10.8%.

The analyst gave Apple a warning, saying that the phone company was being hit by compelling high prices as well as mid-price smartphone alternatives from Chinese vendors.  Also, loyal Apple buyers were delaying any upgrades as they were waiting for more innovative phones. While we loved iPhones for their sleek design, graphics and speed while playing real money casino games, this has really been a big blow.

Innovation Is the Key Theme

Fast Company seemed to share the same sentiments with Gartner. They illustrated the analyst’s point with a publication of its very popular annual rankings of the world’s most innovative companies. Interestingly, on the list, Apple fell to number 17, down from number 1.

Qualcomm brings much more clear and present danger. In their interview with Reuters, Qualcomm said that they were now pursuing a ban on iPhone sales in the United States due to patent infringements.

Just last week, the company won a sale injunction on the iPhone 7 and 8 in Germany. That made the move precedent. To circumvent the ruling, Apple agreed to ship the 2 models with Qualcomm hardware.

Apple said that it needed a total of 6 months in order to verify that the fix will actually satisfy regulators as well as sell its existing inventory. Also, Reuters reports that Apple, which is compatible with online sportsbooks apps, had asked the full commission to delay any possible import ban by 6 months if the commission reverses the judge’s decision.

The 3 developments have actually highlighted a reduction in Apple’s iPhone innovation. In fact, Apple’s 2019 iPhones will look identical for the 3rd time in a row.

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