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Guardian (UK): “Apple sees profits fall for first time in a decade but cash pile rises to $145bn”

. . . Darren Hayes, professor at Pace University’s Seidenberg School of Computer Science and Information Systems in New York, said many of Apple’s problems had been of its own making. In its determination to keep its prices and margins high, Apple has failed to capitalise on the troubles of BlackBerry, he said.

In 2010, smartphones powered by Google’s Android operating system had virtually no market share in the corporate world but by 2012 they had a 34% adoption rate by businesses. According to Gartner, that rate will increase to 56% by 2014. According to Kleiner, Perkins, Caufield and Byers, the Android adoption rate in businesses is six times that of iPhones.

“I blame bad strategic planning. They felt like they didn’t need to give price breaks because they had the superior product,” said Hayes. But the competition has sharpened. While Apple’s iPad still has a significant lead in tablets in smartphones they are now playing catch up to Samsung’s Galaxy line. Perhaps more worryingly there’s a lack of Apple “buzz”, said Hayes.

Read the article in the Guardian.

Read more comments by Professor Hayes in the Huffington Post and Silicon Valley Business Journal.

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