iPhone a great product with a decreasing value proposition

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Steve Job’s brain CEO of Apple gave birth almost a decade ago to what we know today as the Smartphone. This pocket computer and phone all in one was a market disruptor and generated a whole industry that revolves around the technological development of microchips (hardware), man-machine interfaces (software) and marketing (know how). The iPhone took apple to the peak of this industry and they have been able to maintain this position by providing a unique and exclusive software experience to the user.

Apple’s value proposition is a combination of Hardware and software both of them with very high user satisfaction levels, as high as their Android counterparts, although, at a price points that locates them out of market in terms of value vs. money. Currently Apple is capable to sell these large quantities given a great job they have done on user fidelization through their closed ecosystem; however their users are starting to realize that they are paying premium for something that doesn’t have a superior value to the competition or even lower value.

Today apple must make decisions for the future of the company that it’s within constant rising prices industry, where they have done their part on this inflationary pressure, but not at the same level they have improved their product; in which they have included only marginal improvements and innovations. Apple should start to be inclusive, play well with others and complement their value proposition with the rest of the industry, taking into account that the future of the industry relies on the massive adoption of their software and complementary services (i.e.: opening the Applewatch to Android or licensing iOS to other manufacturer at very favorable conditions to Apple). All the previous, plus finishing to milk their star product the iPhone until it may be possible and after that carry out a contraction of the company as business strategy, meanwhile they augment their iOS user base.

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