When big companies such as Apple or Facebook make the news, we automatically think of great achievements and huge profits.
We may be a bit too hasty in our assumption.
A study published in the Harvard Business Review suggests that it’s now rare for a company to maintain a truly lasting advantage.
It says that competitors and customers have become too unpredictable.
The real lucky company today when it comes to growth and market capitalization is Amazon, aiming to outpace Apple!
Amazon must be on a cloud
According to Investors’ Business Daily, a business platform, Amazon is on a path to a $1 trillion market value and is also on track to handle about 50% of all U.S. e-commerce spending by next year.
The business platform revealed that Amazon is worth between $900 billion to $1 trillion.
It quoted GBH Insights analyst Daniel Ives as saying that Amazon’s core consumer e-commerce business is worth between $600bn to $650bn, while the value of Amazon Web Services cloud-computing business is at $300 bn to $350 bn, getting it to a market capitalization at $1 trillion.
Business Insider says the source of the company’s optimism is Amazon Web Services.
“AWS dominates the cloud-computing market and has been growing rapidly as corporations shift their IT operations from their own data centers to the cloud,” it says.
The company’s good faith is also attributed to the US e-commerce market which is expected to grow from about 44% to around 50% by next year.
Meanwhile, MarketWatch reveals that Amazon gave a lot of credit to Alexa, its voice-activated assistant, with Chief Executive Jeff Bezos saying in a statement that Alexa’s results far outpaced its internal projections, and that Amazon would double its investment in this arena.
Amazon’s stock jumped more than 6% at the beginning of February after the e-commerce giant topped Wall Street’s fourth-quarter expectations.
So who is on the lower level of the ladder these days?
Apple: From stellar to low seller
Apple faced various challenges in the past year.
Media reports revealed that Apple will cut its iPhoneX production target for the first three months of the year by half to around 20 million units after failing to meet sales target of the device for the holiday season.
“The production cut was prompted by slower-than-expected sales in the holiday shopping season in Europe, the United States and China,” said a media statement.
As a result, Apple’s shares went down 1.6% as reported by Nikkei.
Also, Apple’s shares fell to their lowest level in 2018, knocking off $14 billion from the company’s market value.
The company has also been facing fierce competition from Samsung and surprisingly from Huawei.
According to Gadgets 360, Samsung grabbed the top spot in the global smartphone sales to end users in the third quarter of 2017 with 22.3% market share compared to 11.9% for Apple while Huawei succeeded in snatching 9.5% from the market.
Moreover, the company faced a hard time when it admitted on December 21, 2017 that it has been secretly stifling the performance of older iPhones.
Will Apple be able to take the hit?
It looks like Apple is trying to make up for the loss caused by iPhone X by releasing a trio of new smartphones later this year: the largest iPhone ever, an upgraded handset the same size as the current iPhone X and a less expensive model with some of the flagship phone’s key features.
The Star, a business news website, reveals that Apple wants to appeal to the growing number of consumers who crave the multi-tasking attributes of so-called phablets while also catering to those looking for a more affordable version of the iPhone X.
Apple had its share of bad luck last year. Who else is facing challenges?
Is Facebook coming to an end?
Research firm eMarketer predicted that two million people under the age of 25 have stopped using the social network in 2017.
According to a recent study published by the Independent, younger consumers want novelty and exclusivity too and the search for the latest buzz in social media will continue to lead them away from Facebook.
“This is a logical consequence of the ‘ageing’ of Facebook as a proposition and a well-known environment, and the inevitable emergence of newer social platforms offering the buzz of new features and functions,” said Karin von Abrams, principal analyst at eMarketer.
The independent revealed that “many teens already prioritize social networks such as Instagram and Snapchat over Facebook, and that trend is bound to increase as ever-younger consumers join social media.”
Statista revealed that 2,000 Americans were polled on feelings about a selection of different online platforms and the research uncovered a high level of negativity.
“Facebook has over two billion monthly active users and in the U.S. at least, 32% want to kill it while 64% want it kept alive,” it added.