Tag: amazon

  • Apple’s AirPods 2 will help the ‘hearables’ segment to grow

    Apple’s AirPods 2 will help the ‘hearables’ segment to grow

    According to Counterpoint Research, wireless ‘hearables’ are the next big thing. The segment, which contains Apple’s AirPods and the Samsung Galaxy Buds, saw global sales of around 46 million units last year. But with the help of AirPods 2, this could catapult to 129 million units as early as next year.

    Samsung, Google, Bose, and LG are all expected to grow

    As noted by Research Director Pete Richardson, “2019 will be the year that hearables evolve into an important market.” For the most part, new releases from major brands will boost sales across the globe. However, the evolving digital habits of consumers are also expected to propel demand.

    The likes of Samsung, Bose, Huawei, and LG all hold relatively small market shares at the moment. But as interest in the segment picks up throughout this year and next, each one is set to experience relatively strong growth which should translate into larger market shares.

    New Google Pixel Buds and other releases from the likes of Amazon are expected to play an important role too. After all, these should integrate the likes of Google Assistant and Alexa, both of which are becoming increasingly popular among consumers.

    AirPods 2 will propel the ‘hearables’ segment to new levels

    As mentioned in the opening paragraph, for the foreseeable future Apple is expected to remain the biggest driving force of growth. Rumor has it that the brand is preparing a second-generation of its AirPods which should integrate a variety of new features and potentially some small design changes.

    From afar, AirPods 2 are expected to look identical to the originals. But upon closer inspection, a new frosted glass-like coating should be visible. This, according to rumors, will improve grip and reduce the slipperiness, which means the new AirPods shouldn’t fall out of your ears so easily.

    AirPods 2 should also introduce always-on Siri, which will allow users to activate the assistant with the words “Hey, Siri.” This feature was actually first teased way back in September by Apple but still hasn’t been confirmed officially.

    Joining the improved Siri will apparently be some kind of water resistance and potentially some health-related features. More specifically, an earlier report suggested Apple was researching the possibility of a built-in heart rate monitor. However, this extra is far from guaranteed. One feature that does seem extremely likely at this point is support for wireless charging through a new charging case. Allegedly, this feature, which will charge both the case and AirPods simultaneously, will take the battery level from 0% to 100% in just 15 minutes.

    Also expected from the new wireless accessory is Apple’s W2 Bluetooth connectivity chip. This can currently be found inside the Apple Watch Series 4 and halves the power consumption with respect to the W1 chip. As a result, battery life improvements are to be expected.

    Of course, Apple’s AirPods are primarily meant for music and Apple is set to bring some improvements to the overall sound quality.

    Most AirPods buyers aren’t bothered about sound quality

    Rather ironically, despite the fact AirPods are meant for music, consumers aren’t buying them because of their sound quality. Counterpoint Research recently conducted an online survey of over 200 people regarding their preferences. In the case of AirPods, 68% of correspondents cited “comfort & fit” as a key reason for buying them. This was followed by “ease of use” and “portability,” which were mentioned by 56% and 44% of people respectively.

    As it turns out, just 41% of the people surveyed cited “sound quality” as a reason for buying AirPods. For comparison, this factor was the key driver when it came to Bose products, with a whopping 72% listing it. “Noise cancellation” was also important with Bose headphones as it was cited by 68% of people.

  • Indian fashion chain Reliance Trends to open over 2,000 stores

    Indian fashion chain Reliance Trends to open over 2,000 stores

    Indian conglomerate Reliance Industries will expand its low-cost fashion store network Reliance Trends to 2500 locations within five years.

    The chain currently has just 557 stores in 160 cites, and will target a presence in 140 more, involving deeper penetration into tier 3 and 4 cities.

    The planned expansion will involve an integration with the firm’s online activities and will serve as a gambit to seize a commanding market share of consumer spending against e-commerce competitors Amazon and Flipkart.

    The move follows recent restrictions on foreign investment into India that have at least temporarily disadvantaged the online giants. The new legislation bans online retailers from making exclusive contracts with vendors, among other restrictions.

    The Reliance Trends expansion is expected to help the firm boost its own labels in a territory that is home to the world’s largest population of millennial consumers.

  • The Motorola Moto G7 Power & G7 Play finally have release dates

    The Motorola Moto G7 Power & G7 Play finally have release dates

    The Motorola Moto G7 Play and Moto G7 Power will soon be available on US store shelves, the Chicago-based brand has announced. Once released, they will join the $299 Moto G7 which launched earlier this month.The Moto G7 Power, on the one hand, will be available to pre-order later this week on March 15. Shipments of the device will then kick off just seven days later on March 22. The Moto G7 Play, on the other hand, won’t be released until April 5. However, if you wish to get your hands on it that day, the budget offering will be available to pre-order one week earlier on March 29.

    As previously revealed, the Moto G7 power will cost just $249 when released later this month. At that price, consumers gain access to Qualcomm’s Snapdragon 632, a large 6.2-inch display, and a huge 5,000mAh battery which produces the best battery life we’ve ever tested. If the Moto G7 Power is a bit too pricey for you, the Moto G7 Play will be available for just $199. This offering maintains the same processor but shrinks the display to 5.7-inches. The battery is also quite a bit smaller at 3,000mAh. The Moto G7 Power & Moto G7 Play will both be available to pre-order and purchase through Motorola.com and Amazon. Select US retailers including Best Buy and B&H Photo will also offer the devices once released. Both models should be compatible with all US carriers.

  • BMW And MINI Lifestyle Collection Now Will Be Available On Amazon

    BMW And MINI Lifestyle Collection Now Will Be Available On Amazon

    In a bid to make its original lifestyle collection more accessible to automotive enthusiasts in India, BMW India today announced launching the latest range of BMW and MINI branded products on Amazon India. Customer now have access to a wide range of original BMW and MINI branded clothing, accessories, luggage, and many other types of merchandise, which can now be purchased online.

    Customers now have access to wide range of original clothing, accessories, luggage, and more

    Hans-Christian Baertels, President, BMW Group India said, “The fascinating BMW and MINI Lifestyle Collection is created to add a touch of style, sophistication and inspiration to everyday life. We are thrilled to introduce the unique BMW and MINI Lifestyle Collection for our customers on Amazon India. This will enhance the reach and accessibility of our authentic and aspirational range of lifestyle products beyond the existing retail area in our showrooms. Be it golf equipment, bags, wallets, watches, t-shirts, jackets or even miniature cars, there is always something for everyone.”

    The collection will include products themed after the multiple branches within the BMW family like – BMW M Collection, BMW Motorsport Heritage Collection, BMW i Collection, Montblanc for BMW Special Edition, the BMW Iconic Collection and BMW Miniature Collection. A similar collection of MINI-branded clothing and bags to luggage, accessories and mobility items will also be on offer.

  • Select Vietnamese sellers to get Amazon training support

    Select Vietnamese sellers to get Amazon training support

    100 selected Vietnamese businesses will participate in a support program to help them reach more customers on Amazon. These businesses will receive offline or online training, with in-depth support from Amazon and discounts from local service providers, according to a statement jointly released Wednesday by the Vietnam Trade Promotion Agency (Vietrade) under the Ministry of Finance and Amazon Global Selling.

    The program aims to help local businesses, especially in handicraft, textile, footwear and consumer goods, improve their export capabilities through selling on Amazon.

    They will also have the opportunity to participate in the second stage of the program, which will help them develop their brands.

    Other sellers who are interested can also join an online training program starting next month to get equipped with the basic knowledge of selling on Amazon.

    Bernard Tay, Amazon’s regional director for Southeast Asia, said that the young, tech savvy population in Vietnam and strong development of the manufacturing sector generate great e-commerce potential in the country.

    However, a lack of knowledge and experience prevents them from reaching out to the global market, he said.

    Vu Ba Phu, director of Vietrade, said that the support program will open up new potentials for local companies in expanding their businesses internationally.

    There are 300 million Amazon accounts in 185 countries and territories at present. Amazon also has 175 fulfillment centers worldwide.

    Vietnam has more than 700,000 businesses, of which 98 percent are small and medium enterprises, according to Vietrade.

    The country’s e-commerce market grew by 25 percent in 2017 and is expected to maintain this growth momentum over the next three years, according to the Vietnam E-commerce Association (Vecom).

    It also estimates online retail revenues to hit $10 billion by 2020, accounting for five percent of the country’s retail market.

  • Meet Scout, Amazon’s new delivery robot

    Meet Scout, Amazon’s new delivery robot

    Amazon is field testing a new delivery robot called Scout, which the company describes as a “fully-electric delivery system” designed to safely get packages to customers using autonomous delivery devices.

    Six robots are initially being tested in a Snohomish County neighbourhood in the U.S. state of Washington, where they’ll be delivering packages Monday through Friday during daylight hours. The devices will autonomously follow their delivery route but are initially being accompanied by an Amazon employee.

    Customers in Snohomish County order just as they normally would and their Amazon packages will be delivered either by one of Amazon’s partner carriers or by Amazon Scout.

    The robots, which are the size of a small cooler box, were created at Amazon’s research and development lab in Seattle. They’re designed to roll along sidewalks at a walking pace and safely navigate around pets, pedestrians and anything else in their path.

  • Amazon crafts new grocery offerings

    Amazon crafts new grocery offerings

    E-commerce giant Amazon is plotting a new grocery business in the US. The online retail giant is planning to strengthen its supermarket brand by purchasing local grocery chains that operate at least a dozen stores, the report claims.

    The first store is expected to open in Los Angeles by the end of the year, with leases signed for two more locations, set to open by early 2020. The business is in talks to bring the grocery stores to shopping malls in San Francisco, Seattle, Chicago, Washington, D.C. and Philadelphia.

    Amazon, which bought the healthy supermarket chain Whole Foods for $13.7 billion in 2017, had “ambitions in this space” for a long time.

    Amazon’s big rival, Walmart has already been preparing for a battle with the retail giant, the source said. Walmart is introducing grocery pickup at 3,100 stores by next January and will also offer grocery delivery from about 800 more stores by the end of 2019.

  • Western Union Debuts New Payment Option for Amazon

    Western Union Debuts New Payment Option for Amazon

    Cross-border, cross-currency money-movement firm Western Union has unveiled a new payment option that allows Amazon customers in Hong Kong and other Asian markets to pay in local currency for their purchases. The service is being offered initially in 10 countries – Chile, Colombia, Hong Kong, Indonesia, Kenya, Malaysia, Peru, the Philippines, Taiwan and Thailand – enabling customers who prefer to pay in cash to shop Amazon.com’s vast product selection.

    The new platform is called Amazon PayCode, which processes the complex foreign exchange, settlement and money movement requirements for international e-commerce transactions. After selecting PayCode on the Amazon.com checkout page, customers will be sent a code along with instructions on how to pay in person at a participating Western Union agent location.

    The move by Western Union and Amazon will provide greater access to online goods for customers who have largely been excluded from e-commerce shopping due to lack of accepted payment methods.

    “We’re helping to unlock access to Amazon.com for customers who need and want items that can only be found online in many parts of the world,” said Khalid Fellahi, SVP and GM of Western Union Digital.

    “This is a great example of two global brands innovating and collaborating to bring customers more convenience and choice. In a world where cross-border buyers and sellers are often located on different continents and in completely different financial ecosystems, our platform is ideally suited to solving the complexity of collecting local currency and converting it into whatever currency merchants need on the other end.”

    “Amazon is committed to enabling customers anywhere in the world to shop on Amazon.com, and a big part of that is to allow customers to pay for their cross-border online purchases in a way that is most convenient for them,” said Ben Volk, director of payment acceptance and experience at Amazon. “Amazon PayCode leverages the reach of Western Union to make cross-border online shopping a reliable and convenient experience for customers who do not have access to international credit cards, or prefer to pay in cash.”

  • Amazon to train Vietnamese small firms in e-commerce

    Amazon to train Vietnamese small firms in e-commerce

    Amazon will train 100 Vietnamese businesses to develop their business on its platform. According to the Department of Trade Promotion, Amazon Global Selling will identify 100 small and medium-sized enterprises (SMEs) for its “Supporting Vietnamese enterprises to boost exports via Amazon” program. It will train the businesses in promoting exports and build brands through its website.

    According to Amazon Global Selling, the program will support businesses with comprehensive export solutions and logistics infrastructure, its 175 fulfillment centers and presence in 185 countries.

    “In the context of evolving global markets, Vietnam has more than 700,000 businesses, of which 98 percent are SMEs, so in addition to traditional trade promotion methods such as going to international trade fairs, promoting e-commerce is extremely necessary,” Vu Ba Phu, head of the department, said.

    Bernard Tay, director of Amazon Global Selling in Southeast Asia, said his company chose Vietnam to run this program because it sees great potential for development, especially with the entrepreneurial spirit of Vietnamese youth.

    “Vietnamese businesses are well known for their top production capabilities. When combined with our worldwide resources, it will create conditions for them to develop and build brands in the international market.”

    But he said they need to adapt to global product trends, improve their proficiency in foreign languages and brand building expertise to derive the most from the e-commerce platform.

    Vietnam’s e-commerce value climbed to about $4 billion in 2016, becoming one of the fastest-growing markets in the world.

    Revenue from online retail in the country is forecast to hit $10 billion by 2020, accounting for five percent of the country’s retail market.

  • Amazon enjoys positive performance with increases in sales, profit

    Amazon enjoys positive performance with increases in sales, profit

    Global online shopping platform Amazon reported growth in both net sales and profit for the fourth-quarter 2018 and full-year, adding its Alexa use and Prime membership continues to thrive, particular in the all-important holiday season. For the fourth quarter ending December 31, net sales increased 20% to $72.4 billion in the fourth quarter, compared with $60.5 billion in fourth quarter 2017. Excluding unfavourable foreign exchange rates, sales increased 21%.

    Amazon said net income for the quarter increased to $3 billion in the fourth quarter, or $6.04 per diluted share, compared with net income of $1.9 billion, or $3.75 per diluted share, in 2017.

    For the twelve months ending December 31, Amazon’s net sales increased 31% to $232.9 billion, up from $177.9 billion in 2017. Excluding the $1.3 billion favorable impact exchange rates, net sales increased 30% compared with 2017.

    For the full-year 2018, Amazon’s net income increased to $10.1 billion, or $20.14 per diluted share, compared with net income of $3 billion, or $6.15 per diluted share.

    In the earnings announcement, Amazon’s founder and CEO Jeff Bezos, praised the recent holiday season, in particular, the Amazon customer uptake of Alexa, the voice activated shopping device and its associated Echo products.

    “Alexa was very busy during her holiday season. Echo Dot was the best-selling item across all products on Amazon globally, and customers purchased millions more devices from the Echo family compared to last year,” said Bezos.

    “The number of research scientists working on Alexa has more than doubled in the past year, and the results of the team’s hard work are clear. In 2018, we improved Alexa’s ability to understand requests and answer questions by more than 20% through advances in machine learning, we added billions of facts making Alexa more knowledgeable than ever, developers doubled the number of Alexa skills to over 80,000, and customers spoke to Alexa tens of billions more times in 2018 compared to 2017. We’re energized by and grateful for the response, and you can count on us to keep working hard to bring even more invention to customers,” he added.

    Other highlights for Amazon in 2018 included the increase in Prime memberships. During the holiday season alone, tens of millions of customers worldwide started Prime free trials or began paid memberships. More customers signed up for Prime worldwide in 2018 than ever before, said Amazon.

    In Asia, Amazon Fashion launched Prime Wardrobe in Japan, allowing Prime members to order clothing, shoes, and accessories and only pay for what they keep.

    Looking ahead to the first quarter 2019, net sales are expected to be between $56 billion and $60 billion, up 10% to 18% compared with first quarter 2018. Meanwhile, operating income is expected to be between $2.3 billion and $3.3 billion.

  • First Vietnamese to enter 200 richest people in the world list

    First Vietnamese to enter 200 richest people in the world list

    Pham Nhat Vuong is the first Vietnamese to enter the list of the world’s 200 wealthiest people. He has an estimated worth of $7.5 billion. Vuong, who heads the Vingroup conglomerate, is 198th on the real time billionaires ranking updated by Forbes magazine on Saturday. His net worth has increased by $3.2 billion over last year when he topped Forbes’s list of four Vietnamese billionaires.

    A 13 percent increase in the value of Vingroup’s shares in the first week after Vietnam’s stock market reopened following a 9-day Tet (Lunar New Year Festival) break has been a factor in boosting Vuong’s net worth and catapulting him into the top 200 list.

    Price of Vingroup’s share (VIC) stood at VND112,000 ($4.82) at the end of the trading session last Friday.

    Vingroup, one of Vietnam’s largest real estate conglomerates, has been expanding rapidly into retail, logistics, agriculture, education and healthcare sectors. Vuong was first mentioned as a billionaire on the Forbes list in 2013 with a net worth of $1.5 billion, ranking 974th richest in the world.

    Nguyen Thi Phuong Thao, the other Vietnamese billionaire and owner of budget carrier Vietjet, is 1,014th on the Forbes list of global billionaires with assets worth around $2.3 billion.

    Topping the Forbes list was Amazon founder Jeff Bezos, who became world’s first centi-billionaire with a net worth of $133 billion, up $21 billion from 2018. Bill Gates, Microsoft’s co-founder, was in second place with a net worth of $97 billion.

  • Indian consumers ask Amazon to resume Pantry service

    Indian consumers ask Amazon to resume Pantry service

    The Indian users of online grocery delivery service Amazon Pantry have taken to Twitter to urge the e-retail major to resume services ever since it was discontinued on February 1. “Currently, pantry items are not available on Amazon. Kindly stay tuned for more updates. Thank you for understanding,” Amazon responded to its Indian users in a tweet. The service became unavailable in India on February 1, the day revised norms for Foreign Direct Investment (FDI) in e-commerce came into force in the country.

    Following the new norms, Amazon has also removed from its website sellers such as Cloudtail India and Appario Retail Pvt Ltd in which it owns a stake.

    “I am missing Amazon Pantry service which catered to my monthly needs. It was super convenient,” tweeted a user.

    “What happened to Amazon Pantry? Please fix it,” read another user’s tweet.

    Under the Ministry of Commerce and Industry’s new guidelines issued on December 26, e-commerce platforms providing a marketplace are barred from exercising control or ownership over the inventory.

    They are also barred from allowing any company to sell its products exclusively on their e-commerce platforms alone.

    The Indian arm of the Seattle-based e-commerce giant did not respond to questions by IANS on the expected impact to its business in the light of the revised norms.

    While the company had earlier in a statement to IANS said that “it has always operated in compliance with the laws of the land”, it did not respond to queries on the changes it may have to make to its business model to suit the new norms.

  • Snapdeal bats for new FDI policy in e-commerce from Feb 1

    Snapdeal bats for new FDI policy in e-commerce from Feb 1

    Leading Indian e-tailer Snapdeal on Tuesday supported the implementation of revised Foreign Direct Investment (FDI) policy on e-commerce from February 1. “Snapdeal supports the immediate implementation of the current FDI policy on e-commerce so that marketplaces are not misused to run inventory operations,” Delhi-based Snapdeal told IANS in a statement.

    The Ministry of Commerce and Industry on December 26 issued revised policy guidelines on FDI in e-commerce.

    The policy revision, which will be in force from February 1, dictates that e-commerce platforms providing a marketplace will not exercise control or ownership over the inventory.

    E-tail majors Flipkart and American online retailer Amazon’s Indian arm, however, sought an extension on the implementation of the new norms, amid protesting voices from retail traders’ bodies against granting the extension.

    “Government policy changes will have long-term implications in the evolution of the promising sector and the whole ecosystem,” American retail giant Walmart-owned Flipkart told IANS through a statement earlier.

    The new norms also barred e-tail firms from allowing any company to sell its products exclusively on their e-commerce platforms alone.

    While Amazon India had said in a statement to IANS that “it has always operated in compliance with the laws of the land”, it did not respond to queries on the changes it may have to make to its business model to suit the new norms.

    On the other hand, the Confederation of All India Traders (CAIT) has asserted that delaying the execution of the policy will allow the e-tailers to continue with their “dominance over retail trade”.

    “The modus operandi of these e-commerce companies for seeking extension (on implementation of new FDI norms) is to keep delaying fair execution of the policy,” CAIT wrote in a letter to the Ministry of Commerce and Industry this month.

    “They (e-commerce platforms) may continue with their sinister designs of operating all kinds of malpractice including predatory pricing, deep discounting and exclusivity, in order to ensure their control and dominance over retail trade and wipe out the competition,” the letter said.

    The Ministry, however, has not indicated any possible extension of deadline to implement the new norms.

  • Behind Amazon’s 63 per cent income rise

    Behind Amazon’s 63 per cent income rise

    The latest Amazon results are positive – but there is now a clear divergence in performance between the top and bottom lines. On the profit front, Amazon’s results are impressive. Net income increased by 63.1 per cent and operating income by 78 per cent. Much of this is coming from the AWS segment, where income from operations rose by 61 per cent. However, some credit should also go to the North American operation where volume increases helped ease up operating profits by 33 per cent. These uplifts come in spite of the fact that Amazon is still investing huge amounts in the business. Therefore they go a long way to justify the myriad of projects that Amazon has undertaken and continues to undertake.

    While the profit lines look rosy, the sales line presents a mixed bag. The slowdown in product growth is now tangible and although an 8.2 per cent uplift is strong compared to many retailers, by Amazon’s standards it is a weak performance. On a divisional basis, North America held up better than international markets, largely thanks to the confidence of the American consumer. Even so, sales growth in North America has also dipped.

    There are several dynamics at play here. First, is the maturity of Amazon’s operation: Amazon is now a massive retailer and it is simply unrealistic to expect it to keep on growing at its historic pace. However, more concerningly, this maturity is also coinciding with a period of rising competition. Retailers like Target and Walmart have invested heavily in their online operations and pulled out all the stops this holiday season. Our data show that they made solid customer gains, and some of that dented Amazon’s growth. In our view, the gap between Amazon and the rest is now narrowing.

    Another area of concern is Whole Foods. Amazon’s results show that sales at physical stores dropped by 2.7 per cent over last year, largely thanks to the grocery division. The investment in lower prices partly explains this, but it does not account for the bulk of the decline. In our opinion, much of this is because Whole Foods’ proposition is simply not up to scratch. Basics and commodity products still cost way more than at rivals like Target, and this is one of the reasons perceptions that Whole Foods is needlessly expensive have persisted. Such expense is not justified by store experience nor by customer service, both of which remain lackluster.

    Arguably, a holiday period that coincided with strong consumer finances should have been fertile ground for Whole Foods to thrive. However, very little effort was made to entice or enthrall customers. Aside from fresh counters, the festive product line up was incredibly poor with a noticeable lack of treats and interesting items. As a result, many consumers simply went elsewhere.

    We are cognisant that many of the Whole Foods issues are not of Amazon’s making. However, the poor performance underlines how much work remains to be done in transforming the chain’s fortunes.

    Despite these niggles, we remain positive about Amazon. The Prime platform still has enormous potential, there is plenty of upside in devices, and there are many opportunities to improve own-brands (some of which have underperformed). Taken together, along with AWS, this means Amazon has scope for future growth.

    However, it is also clear that Amazon will now need to work doubly hard to achieve any future sales gains.

  • Apple sales and profit slip as demand falls

    Apple sales and profit slip as demand falls

    Tumbling iPhone demand drove an uncharacteristic decline in Apple sales in the first quarter trimming back its profit for the period. Sales of its iPhone range slumped 15 per cent year on year, and although burgeoning revenue from services like digital media subscriptions – up 19 per cent to a new high of US$10.9 billion – and other products compensated, total sales were down 5 per cent to $84.3 billion.

    Sales in China slumped 26.6 per cent during the period.

    Net income fell by $100 million, from $20.065 billion in the December 2017 quarter to $19.965 billion in the latest quarter. While the company championed setting “an all-time earnings per share record” that was a consequence of a share buyback program reducing the share pool rather than an improved bottom line.

    Commenting on the results, GlobalData Retail MD Neil Saunders said while Apple is still a money-making machine, the sales decline “symbolises a company that is starting to run out of steam”.

    “In our view, this is something to be corrected, not least because Apple is a costly company to run and it relies on strong revenue growth to drive up the bottom line. As this quarter’s figures show, failure to achieve that results in profit erosion.”

    Saunders said the slowdown in iPhone sales reflected Apple’s inability to come up with meaningful and valuable innovations that wow consumers.

    “The latest iPhones might be works of art from an engineering perspective, but they are essentially incremental products that lack the excitement and newness of earlier models. With the higher price points of top-end models, consumers expect a lot more for their money. The blunt truth is, Apple’s latest line up of phones doesn’t do that much more than the generations that came before.”

    He said the slowdown in China is a problem Apple shares with many other companies.

    “The country is suffering from more sluggish consumer demand which has put the brakes on retail growth rates across many sectors. However, the issue for Apple is that this has coincided with a rise in competition from local phones and devices which has helped to eat into its own growth. In short, China is no longer the engine of growth for Apple that it once was and this makes Apple uncomfortably more reliant on mature markets to drive revenues. Some of those markets, like Europe, are also not delivering – thanks to very high price points and consumers that are hesitant to spend on big-ticket items.”

    From must have to might buy

    Saunders said Apple’s iPads and some of its Macs are good, quality items, however they are simply not impressing the market and Apple is losing its lustre in terms of producing compelling products.

    “In our view, Apple has moved from a position of ‘must have this and must have it now’ to ‘might buy this at some point in the future’. Price increases may mitigate this but, ultimately, such a shift can only ever result in a softer sales performance.”

    While services are performing well, Saunders said Apple must push much harder.

    “Amazon is successfully creating an ecosystem of services through Prime. Apple needs to do something similar by building on its Apple Music subscription and its App Store offering. Movies and television content are also needed to propel sales.

    “In our view, Apple should seriously consider a big acquisition such as Netflix. Content is a big growth area and is becoming increasingly linked to devices. Apple needs to play more heavily in this space both to generate new opportunities but also to defend its own device business.”

    While Apple remains a solid and financially successful company, he said, a lack of serious and significant innovation means it runs the risk of diluting future earnings.

    “Apple thrives off serving a mass market; at the moment its moves to provide more expensive items to fewer people will ultimately do further harm to the bottom line. The clear blue water that once existed between Apple and its rivals is much diminished. The company has time to reopen the gap, but to do so, it needs to pull something new and unique out of its hat sooner, rather than later.”

    Cook’s positive spin

    Apple CEO Tim Cook delivered a positive spin on the results: “While it was disappointing to miss our revenue guidance, we manage Apple for the long term, and this quarter’s results demonstrate that the underlying strength of our business runs deep and wide. Our active installed base of devices reached an all-time high of 1.4 billion in the first quarter, growing in each of our geographic segments. That’s a great testament to the satisfaction and loyalty of our customers, and it’s driving our services business to new records thanks to our large and fast-growing ecosystem.”

    At the end of the quarter, Apple’s net cash balance was $130 billion.