Ted Bauman Explains the Drop in Apples Market Share

Ted Bauman has expressed concerns about the future of Apple. Although the tech giant has posed some good numbers in the past, Mr. Bauman has reasons to think that it is future might be at stake. He is an experienced economist who was grew up in the United States and spent over 20 years in South Africa serving as a consultant to the United States as well as several European and African government agencies. The accomplished economist acknowledges the essence of analyzing performance.

Through a Banyan Hill article, Ted Bauman said that consumers anticipate continuous growth and sustainability from Apple judging from its past performance. However, he believes that since the death of Steve Jobs, former Apple CEO, the company has been stagnated and its future is not as bright. One indicator to that is the drop of the company’s stock by 6.5% following the earnings call.

Pricing power gives Apple a sharp edge in the market

According to Ted Bauman, Apple is the most profitable company in the world. Its iPhone brand has a strong market share in the United States, Japan and the United Kingdom. The company takes 20% of other parts of the world’s mobile market share. The company has excelled in its pricing enabled through providing a unique experience and exclusive perks and features to customers. Customers are willing to pay more for quality. Steve Jobs capitalized on giving quality to customers and creating loyal customer base, a thing that propelled the company further in the market.

The value of Apple brand grew tremendously to give the company a high magnitude of pricing power. It takes dedication and profound hard work to build a brand.

Bauman explains the reasons behind the drop in Apple’s market share

People buy products and services based on brands. According to Ted Bauman, Apple’s brand value grew a bit slower leading to the drop in market share. This will likely affect the company’s pricing power and with time, the market share will hit a low point. He is concerned about the cost of MacBook Air, Mac Mini and iPad pro, new apple models in town, is higher than that of other products yet they are not much different.

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