Apple’s New iPhone 8 Looks Like a Dud

I have a knack for getting off trends before a big decline. And I believe Apple is about to go into a period of decline. Here’s why…

In 2003, I bought my very first Apple product: an Apple iPod.

I loved it because it made listening to music easy.

With two clicks, I could find the exact song I wanted to hear. It was perfect for trips or for running, because I could make playlists of my songs and fit my whole music collection on just one device.

Looking back, it was the first time I’d owned something that I loved to use.

So it comes as no surprise that I bought an iMac computer, and then upgraded my iPod and my iMac when new models came out.

After that came the iPhone, and then a series of iPads and iMac computers.

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When I wanted any computer product, I bought an Apple.

Over the past 14 years, I estimate that I’ve spent about $35,000 on Apple products. And I never bought another company’s computer product during that time.

Until now.

As of this year, I’m no longer buying Apple products.

That’s because I have a knack for spotting new product trends that are going to explode higher before anyone else, just like the iPod.

Equally, I have a knack for getting off trends before a big decline. And I believe Apple is about to go into a period of heavy decline. Here’s why…

A Feel-Good Experience

You see, Apple’s lost the thing that got me to buy my iPod 14 years ago.

It’s the delight of having something that works so well, you love using it.

It’s the feeling of wishing that everything you owned worked in the same way.

It’s this feeling that made me go buy more Apple products…

Because they gave you an experience that no other company’s did. That experience made you feel good, so you wanted more and more of it.

However, since Steve Jobs’ tragic death in 2011, Apple’s lost the ability to deliver this experience.

My most recent Apple computer is such a disappointment that I’ve committed to buying a Google Chromebook.

Apple’s iPads are so poorly rated compared to Microsoft’s Surface or Google’s Pixel C that I refuse to buy another one.

And I’ve already jumped ship on Apple’s flagship product, the iPhone, because I believe Apple is simply tinkering instead of innovating. By tinkering, I mean that it’s changing colors, sizes and features that don’t matter to me.

However, in the one thing that matters to me the most — giving me a great experience when using its products — Apple has fallen horribly behind.

This is why after a year of hoping for better things from Apple, I just recently switched to a Google Pixel XL. This is a phone designed by Google and powered by its Android software.

My experience with Google’s Pixel XL has been fantastic. The operating system is noticeably faster. The voice recognition allows me to dictate my text messages with incredible precision.

Using Google’s voice assistant by saying “OK Google” to do searches and find things is fun and enjoyable. Most noticeably, my kids’ delight in using Google’s products and services.

Apple Is Failing

Now, it’s possible that I’m an outlier. However, important voices are saying the same thing that I am when it comes to Apple’s shortcomings.

The iPhone 8 is “not the upgrade you’re looking for,” says Geoffrey Fowler of the Wall Street Journal in his review of the just-announced iPhones.

The Verge’s Nilay Patel writes that the iPhone 8 shows that Apple’s design has “basically stood still for four years.”

“I got a little, er, bored reviewing this device,” says Nicole Nguyen at BuzzFeed News. “There’s a lot that’s still the same as last year’s 7.”

I believe this represents a problem for Apple stock. That’s because investors like Warren Buffett have come and bid Apple stock up in anticipation of the new iPhones being a huge success.

And while Apple stock is up 36% this year, that’s based completely on the hopes that Apple’s new iPhones will sell in a big way.

In other words, if they don’t, you’re going to see these gains and more go away. And more people will start choosing Google’s Pixel phone, or Samsung’s or LG’s phones, because they are giving people a great experience.

Now, many people will dismiss my arguments because of the performance of Apple stock recently.

However, my 20-plus years of investing have taught me that the performance of a stock always follows what’s going on in its business.

For me, Apple’s business is innovation, and specifically innovation that gives you an incredible experience while using its products. But in this most important thing, Apple is failing.

Because of that, it’s just a matter of time before Apple stock follows and begins to fall precipitously … destroying the gains that it’s generated over the last decade.

Regards,

Paul Mampilly
Editor, Profits Unlimited

  • David

    How absolutely true Paul !
    My experiences with computers and mobile phones date back some forty years to the first MACs and phones the size of small suitcases !
    Recently I have tried to retrace my “roots” and move back to Apple from the latest emerging Mycrosoft Horror Operating System only to find that despite all the promises of how simple this would be, nearly a year later I am now giving up the battle – the nonsense between the two completely incompatible OS’s has made me realise that niether company gives a Tinkers Hoot about its paying customers.
    One thing is absolutely certain – I will NOT be adding MS or Apple to my portfolio in this lifetime !

  • Michael Houser

    Even though I agree with most of what you said about the 8, I think the validity of your argument falls short with the X.

  • I’m seeing the same thing. Plus to have Tim Cook jamming his politics down my throat convinces me that his attention is not on my IPhone and his judgement may be too twisted to develop a creative, easy to use product.

    Returning to the point on “easy to use” . I find my settings suddenly change, as If I am going crazy. I have systems testing as my background and bugs has everything to do with logical design of new capabilities, and systems testing before release. If you jam new capabilities in, it may make the techies happy but the other 98% of users will see an increase in complexity and if it is not tested out well, the new “improvements” leave a bug in the old, logical operations.

    What impressed me the most with Jobs is that he made sure that a user could figure out how to use the phone and be able to guess how to do an operation they never tried ,once they see the pattern of how things work. That is no longer true. I have a technical background and get lost trying to do, frequent operations. New capabilities are not where I would think they are or don’t operate the way I would assume they would and many times a DEFAULT changed because some PINHEAD programmer liked it that way. The IPhone use to be magic, now it is one more complication in my life and I have enough of those.

  • Marga Doerr

    From what I have read about the X, not by a lot and $1,000. would be enough for me not to buy a smartphone!

  • Tracy

    Right on the eve of the iPhone X release I would like to know if Apple is still considered a poor buy in stock. Various news outlets around the world indicate that people are lining up to buy the X. CNBC literally quotes “Thousands are lining up for the iPhone X around the world” and Apple CEO Tim Cook told CNBC “from an orders perspective, the iPhone X was off to a very strong start”.

    So with Apple stock sitting at 168.11 as of opening on 11/3/2017, should I buy in before sales supposedly skyrocket?