What Are the Three Biggest Business Blunders of Apple Inc?
When you think of Apple Inc. you might conjure up an image of a business underdog that became a billion-dollar juggernaut that’s on the verge of cracking the trillion-dollar threshold. Of course, all of their out-of-this-world innovations, tech breakthroughs and beautiful designs might also come to mind. However, many don’t readily associate this unicorn business with major blunders; but they have made three disastrous decisions, what are they?
Apple’s Big Miscalculation
Around the time that Apple was preparing the launch of their state-of-the-art smart phone, apple was still enjoying massive success with iPod and iTunes. Really the success they had with the iPod amounted to nearly total market saturation. I remember at the time we must have had at least 4 or 5 different versions of an iPod and nearly everyone I can think of at the time had at least one iPod.
I am sure this unprecedented success is what lead Steve Jobs into development of Apples first smart phone and for good reason. I am sure they believed it would be very easy to get iPod users to adopt a new ultra-modern smart phone. In fact, I believe many consumers were expecting Apple to come up with a new amazing tech gadget to build on their market domination of the digital music player.
However, when Apple did release their new iPhone in 2007 they made a major blunder and signed an exclusivity deal with AT&T... When the release happened, I remember going into the Sprint store to inquire about getting the new Apple iPhone only to learn that it was out of my reach because of the exclusively deal with AT&T. I believe it’s safe to say that the vast majority of iPod users probably went to their cell phone provider to see if they could get the new apple smart phone only to be disappointed!
If Apple had not signed that exclusivity deal it would have been feasible for them to have virtually taken over the smart phone market! They could have preemptively burned all the oxygen out of the market, leaving no breathing room for rivals such as Samsung and Google Android Devices.
Apples Product Launch Blunder
After the release of the iPhone the next big innovation that Apple set out to launch was the Apple Watch. The hype of this product rollout couldn’t have been any more blown out of proportion as many Media pundits and wall street investors were predicting a mind-blowing mass market adoption of the new apple watch with the excitement of the gold rush… I also fell into this hype and speculated that this new Dick Tracy watch just might be the next big thing…. My assessment might be unscientific but nearly every apple user and non-apple user was also giddy with anticipation and expressed a desire to buy, I feel this is more than just anecdotal evidence.
Unfortunately, for Apple Inc. the reality of the Apple Watch launch didn’t come close to living up to all the marketing hype! I believe the real reason this piece of tech arm candy didn’t fly off the shelf is because it didn’t live up to the anticipation of being the Dick Tracy watch that everyone expected. While it did have a lot of cool technology and amazing apps it didn’t have the out-of-this-world ability to be a watch communicator. When I learned that the apple watch didn’t have cellular capabilities it busted my dream and just about everyone else I ran into expressed the same concerns.
Of course, Apple has since rolled out the actually Dick Tracy watch as their latest updated model includes cellular capabilities and can work with nearly every Carrier. However, Apple Inc. simply came to the party too late! If they had waited and delayed the launch of the Apple Watch when it had cellular capabilities, then the sales could have matched or even surpassed all the hype! Once again, Apple missed a golden opportunity to dominate the smart watch market
Apple’s Most Disastrous Business Decision of All Time
Of course, these previous miscalculations and blunders don’t even come close to Apple’s biggest failed business decision of all time, the firing of Steve Jobs! While, there are varying opinions on whether the board’s dismissal of Steve Jobs was justified we can all agreed that the Apple board and new President nearly destroyed the company and tarnished the brand after the departure of Steve Jobs. This epic failure eventually leads the board to making the best decision ever in the history of the company and that was brining Steve Jobs back and the rest is history.
While this article may have tarnished the image, many people held of Apple as an infallible technology oracle. In reality, I have done nothing more that show that you can’t succeed unless you first fail. Show me someone or a business that successful and I will show you a person or organization that has failed many times… Apple Inc. has been transformed from it’s humble beginnings into a corporate titian, under the management of Steve Jobs and now Tim Cook, that’s posed to transcend into a trillion dollar global empire, in spite of the three blunders I pointed out in this article.