Apple is caught in two minds, they can’t choose one path. Rivals are making huge phones; people are highly impressed by that. If Apple follows that trend, growth percentage is less. They can’t continue making two phones; the path has to be selected cleverly. They launched stocks to see growth, recent developments totally destroyed it. The decline is steady though, it is bringing Apple down. Gross margin was healthy in 2014; analysts don’t like the recent figures.

In 2017, it will go below 40%; Cook needs to solve it immediately. Will iPhone 8 create history? Popular analysts can’t give that guarantee, they are not hopeful at all. Apple made some blunders in the production process, this caused the shocking decline. The chart shows Apple’s bad performance, fans can’t be too happy about this. Every year they have to assemble the best raw materials and this pushes up the price. The next problem is charging the device, costly chargers only discourage users. The margins are extremely different and this depends on iPhone’s popularity. Katy Huberty brought up this issue and gave a shocking comparison. Large screens many finally vanish, the previous strategy may come back again.

They need a special team to calculate cost factors, the losses are already accumulating. The strategy team is clueless about the market condition, they misjudge everything. They were so unsure about the performance, that production units became disheartened. The scenario changed after launch, they became confused yet again. Apple tried almost everything to solve the issue, the solution was costly. They need to give exact figures to their partners, this makes things smoother. Conservatism totally backfired, additional production happened later.

Suppliers will do the required work, but they will invest more in other areas. The pricing strategy is also flawed, hey never calculated additional costs. Apple wants everything from the market, this is a big problem.