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Oppenheimer Analyst Says Apple is in For a ‘Decade-Long Malaise’

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Financial analysts continue to bully Apple, as now a second firm has questioned “strategic issues” within the company.

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Just a few short days after UBS questioned Apple’s strategic approach and whether it is still the same as it was under Steve Jobs, Oppenheimer analyst Andrew Uerkwitz has predicted that the company is in for a “decade-long malaise.”

While the analyst admitted that the past ten years has been a decade of growth and returns for the company, the next ten might not be as fruitful and profitable.

“We believe Apple lacks the courage to lead the next generation of innovation (AI, cloud-based services, messaging); instead it will become more reliant than ever on the iPhone” wrote Uerkwitz. “We believe Apple is about to embark on a decade-long malaise. The risks to the company have never been greater.”

Business Insider, who first reported the story, notes that Oppenheimer has pointed out a lot of issues that other analysts have before:

“[Oppenheimer] thinks iPhone sales will peak in 2018; the company lacks the ability to raise prices across its iPhones, iPads, and Mac products; and a clash is developing between ‘Apple’s primary role as the hardware platform…with its secondary role as the software and service provider.'”

Oppenheimer wasn’t all frowns, however, saying that they “believe [Apple’s] strong profitability, a cash hoard for protection, and one last ‘growth’ hurrah from the tenth-anniversary phone will keep investors interested in the company.”

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  • Aleks Oniszczak

    Why just a decade? There is no Steve Jobs to swoop in and save it this time.

  • mcfilmmakers

    The problem isn’t an inability to raise iPhone prices. The problem is that apple simply isn’t innovating. It killed its computer line and made t irrelevant. It hasn’t rebranded its OS. It isn’t fulfilling te promises in TV, auto, and wearables. It is reacting rather than acting. It isn’t competing in the entry level, where the money is at (sub 500$ phones). Also, it reeks of corporation rather than creative. It has lost itself to students and excised itself of enterprise. What’s left? Rich hipsters. We all know how long brands stay cool to that crowd.

  • iOS may not be perfect and innovative as Android, but I love how integrated it is for everything it has.

    As someone who constantly switches between iOS and Android, I love aspects of both sides, however iPhone nearly offers me everything I need right out of the box, integrated within the OS and System apps, and it all is in uniform with itself, with only little help from 3rd party apps.

    On Android I tend to rely on 3rd party apps more, which makes the phones feel so fragmented. Also with every app stock or not all having different colour scenes and headers of the rainbow really drives me nuts. I always feel like I’m using a kids phone trying to use stock google, as it resembles my sons Fisher Price toys.

    For those reasons I personally will stick with iOS, forfeiting greater customization and features, for a more well connected and integrated phone. That’s just my personal choice and preference though, not trying to provoke a war. I think Apple will do fine, the fan base they have currently will keep them rolling.

  • m Arch Tom’s on Bar N Ass

    just say it: ” Apple pushed it to a point with fake data, misinformation and news aiming to sell the company to some unaware and naif chinese or russian investor ( or companies acquiring apple business ) . Unfortunately for apple financial analysts, investment banks, regulators and watchdogs both in EU and US, cannot endorse such frauds taking foreigner investors to bankruptcy… and to protect the domestic ( EU and US ) market when authentic profitable business are in the target for foreign investors and to protect credibility and reputation within EU and US financial operators. DRAFT

  • SOB

    The biggest thing Apple has going for it is the ecosystem. If they can leverage that experience into the services end then that will put them in a good position for the future. I am sure Apple has some master roadmap for the next 10 to 20 years to keep them relevant for years to come.

  • Tim Stewart

    I think it’s just fine that the company no longer has Steve Jobs (most successful companies don’t), but I think that they’ve latched onto Jony Ive as a replacement savior and it’s to their detriment. One of the things that has always set Apple apart in hardware is that not only are they beautiful devices to behold, but also just to hold thanks to the build quality.

    As their race to make their devices ever thinner, lighter and more art-like, they’re forgetting one of the things that Steve Jobs pushed in order to get Apple to the point that they got to under him: Form is important, but it must serve the function. If it isn’t the best at what it’s designed to do, why would you expect a customer to buy it? GIve them what they need, what they want and “one more thing” that they didn’t know they wanted, and you have a pretty solid recipe for a successful product launch.

    Apple’s press material over the last few years for their hard was offering heavily pushes the size, weight and simplicity of their designs rather than the performance. I’d gladly have a MacBook Pro that has a thicker edge taper and weighs a handful of grams more if it meant that I could have a laptop that works for me not only in the USB-C future, but also works for me now… not to mention the design stagnation and SKU bloat of the iPad and to a lesser extent even the iPhone.

  • BigCat

    You just have to love these “Financial analysts”. How many times have you had a good stock broker or personal investment advisor? How many times have you had a bad one?

    Just about know body ever looks back to see how right or wrong they actual turnout to be.

    I still remember how disappointed everybody was when Apple removed the CD ROM drive from the MacBook Pro and made it thinner and lighter. Some people said they were not going to upgrade. Others said Apple showed courage and leadership in dropping the disk technology.

  • m Arch Tom’s on Bar N Ass

    QUOTE: Just about ‘know body’ ever looks …

    @BigCat learn some english first,

  • BigCat

    Thanks Tom, duly noted. English for me will always remain a work in progress. The deep rooted Italiano in me has always made it a challenge.

  • Ignore Tom he’s the local troll

  • BigCat

    Will do. By the way how is that new MacBook Pro treating you? I would love to read a follow-up post on your experience.

  • Janker

    It’s funny that you ripped on @BigCat to learn some English yet in your comment here’s some English you need to improve:
    – “this” should be capitalized.
    – So should “irish,” “italian,” “apple,” and a few other words.
    – You don’t need spacing after leading brackets or preceding ending brackets.
    – Learn about run-on sentences and comma splicing.
    – Everything related to your point c), what the hell is that? A sentence? A list? A question?

    Actually I don’t have more time to waste on this so let me summarize more succinctly: quit being a douchebag to others.

  • m Arch Tom’s on Bar N Ass

    @janker i guess you lack of netiquette, You don’t need capitalizing in e-mail messages and comments, not even in a blog post and for sure not on a internal MEMO, revisions take time and time is money, then only essential revision is required ( unless it’s “paid for writing” and published for profit ). Official reports and Newspapers articles, or documents published and presented in official business meetings maybe subject to the rules you suggest.

    Criticizing an entire industry such as the banking system, ( one of the most aristocratic industry in EU with financial analysts, investment banks, related regulators and watchdogs ) and then showing to be anything but proficient in english, can however lead to making the banking industry institutions an enemy for apple or even for the entire industry for telecommunications, no business or industry can ever survive with enemies among banks, insurers, foundations and just another couple of industries with aristocrat background ( it just takes the pushing of a button on a computer to lock down bank accounts of Apple or even the entire TELCO industry companies ) DRAFT

  • Janker

    ^^^ My point exactly ^^^. Thanks for reinforcing it.

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