A Tech Expert’s Take on Apple’s Lowered Revenue Guidance
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All hell broke loose this week as Apple stocks seemed to plummet by nearly 7%. This really shocked the world as it was unexpected. One of the biggest tech giants in the world, a company that has been renowned for its success and innovation, was failing. It prompted Apple to warn that its quarterly revenue for the holiday sales season would be lower than what people have come to expect.
Expecting a fall on a major gifting holiday from a company whose tech products are used throughout the world? It was a hard pill to swallow, but more importantly, it raised questions regarding the cause of the sudden dip.
Some attempts were made by insiders and analysts trying to piece together the carnage. On the latest Fox Business special, Deke Digital founder Dave Maney discussed his thoughts on the matter and brought in his expertise. He was quoted saying, “I think it’s in some ways less surprising than it’s made out to be.” He explained further, “Innovation in the technology world tends to be a step function, not a continuous one… That means it happens in fits and starts.”
He further added his insight, “And nowhere has that been more apparent over the last decade than in the mobile phone business and smartphone business.”
It’s not an untrue assessment; the mobile world has seen more instability than any other. It’s safe to say that watching a company’s stock dip and spike is pretty common. Dave was quick to remind us that this has happened in the past and history is keen on repeating itself. He said, “I was talking to someone about the great fall of Blackberry… because they missed out on one of those step function innovations and away they went.”
He went on to talk about how the advancement in technology has been a double-edged sword. On one hand, it’s provided us with innovative new technology, but on the other, it’s at a point of stagnation. He elaborated by saying that these step functions are either small or virtually non-existent. To truly be successful, a company has to be on the front of innovation no matter what.
Tim Cook was officially stated saying that 100% of the downfall could be attributed to iPhones. The product that was one of the prime achievements of the company and started a trend was now the sole reason for Apple’s downfall.
It’s safe to say that one cannot expect stability in investing in tech companies at the moment. For investing opportunities outside of the stock market, check out this site.