Apple is going through a make-or-break situation as it struggles through a phenomenon termed the innovator dilemma. It is a dilemma explaining that even the most successful firms may have trouble adjusting when new technologies put their fundamental products at risk. Even Eddy Cue, the important person at Apple, has acknowledged that the iPhone will end up obsolete in less than 10 years. These new attempts to improve artificial intelligence have proven unsuccessful at Apple in recent times. Some features of AI have already appeared in the hands of users, and at the same time, such important innovations of Siri have been postponed as better multitasking support. The competitors of Apple, Microsoft, and others have intensified the use of AI. However, there has been hardly any change in Apple investments, since ChatGPT started to dominate.
The company possesses significant advantages, such as a dedicated consumer base of $1.4 billion iPhone users and an excellent reputation for ensuring privacy. Provided it manages to compete with them in terms of AI, it may find a way to retain such users even in the years. Still, the risks are great. The iPhones and their associated services account for over 80% of Apple’s revenue. Without a big replacement when the iPhone disappears, the business of Apple can be reduced radically.
In the future, Apple will rely on its ability to convert its strengths into actual achievements in AI and new devices. History has taught us that with the lack of adaptation, one can achieve going down, yet Apple managed to jump out of this pit in the past. Investors are not losing hope that Apple can get out of this dilemma, but it is time the company shows them that they are correct in their views.
Even a former right-hand man to Apple (AAPL.O) opens a new tab. Founder Steve Jobs concedes that the iPhone could be obsolete in a decade.